Pet Coke offers to India from US have fallen by about USD 2-3/MT, whereas price of Saudi Arabian Pet coke registers a decline of USD 1/MT W-o-W.
Domestic Pet coke prices have declined in India this week, prompting end-users to maintain the buying spree that prevailed in the previous week.
Reliance Industries Limited, the largest Pet coke producer in the country, has lowered its ex-works price for the product byINR 250/MT, with effect from 1 Oct’15.
Industry players attribute the price reduction to the softening prices in international markets. Declining crude oil prices and incremental production in global markets have resulted in the prices in international markets moving downwards, necessitating price reduction by Indian producers to maintain parity with softening import offers.
“Currently, 55,000 MT Middle Eastern Pet coke (7,800 GCV and 8.5% sulphur content) is assessed at USD 49/MT CFR India; and US origin Pet coke 8300 GCV, bearing 6.2% sulphur content is offered at USD 70 CFR India for a vessel of 60,000 MT”, claimed one of the importers.
Indian importers have preferred procuring from the Middle Eastern region over other regions/countries on account of lower prices, lower freight rates and negotiation acceptance, as learnt in communication with several market participants.
“Sales are robust as the end-users are purchasing vigorously, taking advantage of the declining prices,” said a Pet coke trader in the western part of the country.
In Sept’15, Pet coke imports to India declined approximately by 15% to 811,100 MT than that in Aug’15, at 957,910 MT.
Source- SteelMint Research
In the next week, domestic purchases as well as imports are expected to remain strong due to the prices going lower.
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