The successively declining prices in Indian Pet coke market might not persist in the imminent price revisions by domestic producers, as indicated by the recent development of imbalanced demand and supply.
Domestic prices have not yet undergone any change after Reliance Industries Limited (RIL), the largest producer in the country, had last revised its ex-work price to INR 3,500/MT on 31 Dec’15.
Similarly, import offers have also stabilized at the last known rates. According to a prominent importer in the country, offers for Pet coke (with around 9% Sulphur content) from Saudi Arabia are unchanged at USD 38-39/MT, CFR India. While, offers (with around 6.5% Sulphur content) from US are assessed at USD 47-48/MT, CFR India.
The consecutive price decrements by Indian producers have unleashed active purchases from home markets among buyers in the country, resulting in domestic stocks going down.
Ex-work price of RIL in the first week of Oct’15 was INR 5,500/MT, which declined continuously in successive price revisions due to falling import offers and now the ruling price is INR 3,500/MT.
As a result, domestic prices have become so competitive with that in key international markets that it made a little sense to import but procure domestically. Many buyers, thus, stopped importing due to obvious reasons. However, a few section of buyers, especially cement and metallurgical companies preferred also to import as offers have been low.
Of late, stocks of Pet coke in the country are heard to have gone down considerably due to active domestic purchases and dwindling import consignments. Understandably, widening demand and supply gap might result in domestic producers raising their ex-work prices in the upcoming price revisions.
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