Petcoke prices in India are likely to be increased further as international import offers have undergone significant upswings lately.
MARKET TREND
Demand in the country continues to be strong as active productions are going on in the end-user industries.
According to a reputed market participant, the latest import offers of Petcoke (9% Sulphur) from Saudi Arabia have gone up to around USD 53/MT CFR India; while, offers of the material with 6.5% Sulphur from USA have risen to around USD 57/MT CFR India. These offers pertain to May’16 end/early Jun’16 delivery.
The rise in import offers has been inflicted by shortages due to supply disruptions in the key international markets.
In an interesting turn of events, the prevailing shortages in the two key markets—Saudi Arabia and USA—have prompted producers in other countries to try to export to India, wherein demand is being expected to remain strong.
It may be recalled that, on 1stMay’16, Reliance Industries Limited, the largest producer in the country, had hiked its ex-works price by INR 500/MT to INR 4,650/MT. On that day,Essar, the country’s second largest producer, also had hiked its ex-works price by the same amount to INR 4,640/MT.
Source: Market Sources
IMPORTS
Imports have, however, continued to flow into the country as cement producers, in particular, were in a procuring spree for stocking the material ahead of the monsoon season in the country.
During May’16, 403,700 MT of Petcoke was imported into the country, upto the 11th of the month, according to data compiled by SteelMint Research.
The importers were mainly cement companies, namely: Shree Cement, Ramco Cement, JK Cement and India Cement, among others.
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