Indian prices stable amid strong demand, import offers high
Strong demand, stable domestic prices, high import offers dominated Indian pet coke industry.
The Dollar Business Bureau
The Indian petcoke demand offers have been on a high without any sign of imminent downward correction. Though there have been import offers from US and Saudi Arabia, Indian importers have strongly resisted them as most were not ready to pay more than $86/MT on cost and freight rates in India.
Saudi Arabia is likely to decrease its supply as Yashref, a major refiner in the region, has planned for maintenance shut-down of its 400,000 barrels per day refinery in the Yanbu Industrial City from Nov’16 to the Dec’16. The refinery processes low cost Arabian crude oil, and produces Petcoke, among other by-products, for export.
Reliance Industries Limited (RIL), India's largest producer of pet coke in the country revised its ex-works prices on Nov 12, by Rs.200/MT to Rs.6350/MT with other producers following suit. Essar, the country’s second largest producer, also had reduced its ex-works price by the same amount to Rs. 6,340/MT.
Mangalore Refinery and Petrochemicals Limited (MRPL) also had revised downwards its ex-works price by Rs.251/MT to Rs.5,913/MT for customers outside the Karnataka state. MRPL has also lowered its ex-works price by Rs.101/MT to Rs. 5,988/MT for buyers within the state.
In October this year, 1,119,000MT of Petcoke was produced in India by the domestic producers. This was the highest production in the fIrst 7 months of FY'17. The quantity produced was around 4.4% higher than what was produced the previous month which was at 1,071,000 MT.
The high production was due to the domestic producers’ effort to meet the growing demand for domestic Petcoke as a result of the shortage in the overseas markets.
During the Apr-Oct'16 period, 7,365,000MT of Petcoke was produced in India.
During the Nov 1-18 2016 period, import of petcoke into India was at 779,700 MT.
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