Indian petcoke prices slip in 2H FY2017-18

Greenwich (CT), USA, August 16, 2017 – High-sulfur and low-sulfur petcoke CFR prices have declined in India West Coast, between June and mid-August 2017. According to CW Research’s India Petcoke CFR Price Assessment, high-sulfur petcoke prices dropped two percent. CFR prices for low-sulfur petcoke suffered a similar decrease percent up to mid-August, after a continuous rise since the start of the year that led them to surpass the USD 100 mark per ton by the end of May.

In the first two weeks of August, high-sulfur CFR prices for petcoke traded at a premium of over 28 percent when compared to Richards Bay coal prices in a price per mmBTU perspective. Low-sulfur prices stood at a premium of 21 percent against the same benchmark during the aforementioned period. Coal prices rose, boosted by an increasing international as well as domestic demand, whereas petcoke prices contracted.

The anxiety felt in the domestic petcoke market during the first half of the year follows the National Green Tribunal ban on unlicensed petcoke use. Discussed for several months due to its environmental implications, the court approved petcoke burning for the cement and power industries, although they will have to be properly licensed and uphold the use of equipment to reduce and monitor emissions.

Therefore, the petcoke demand outlook remains positive, as stressed by Raluca Cercel, Senior Consulting Analyst at CW Group: “petcoke import prices in India are currently under pressure from seasonal factors and still reeling from the Tribunal’s decision, which led key industry players to scale down their procurement of this product. Long-term demand outlook remains positive, in part due to Reliance’s petcoke gasification project, scheduled to be commissioned later in the year.”

Long-term demand to rise on infrastructure projects

CW Research’s bimonthly price assessment shows that impending hindrances to petcoke CFR price indices may be circumvented on the long term by future infrastructure projects.

The monsoon period is hampering petcoke demand in the second quarter of the current fiscal year, as key-industries, such as cement manufacturing, decrease their production. The resulting pressure on demand could be further exacerbated by the companies that anticipated the monsoon season, and pre-emptively stocked up on the fuel. As demand subsides, prices will be pressured down, especially if consumption falls in other key markets as well.

However, Reliance, a major domestic petcoke producer, is set to start the first of its petcoke gasifier units in December, thus holding the potential to propel both demand and prices up. The project was supposed to have been commissioned at the end of the first quarter, but was affected by delays. As soon as they are set into motion, the coke gasification units can impact petcoke trade dynamics in India. As domestic production will likely be veered towards this project, end-users will become more reliant on imports, thus leading to a possible price hike.

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For more information, placing an order, or interview inquiries, please contact Liviu Dinu, Market Services & Marketing Consultant, CW Group, by phone at +40-744-67-44-11, or e-mail at ld@cwgrp.com.

About the Report
India Petcoke CFR Price Assessment is part of CW Research’s price assessment series for tradable commodities. The reports offer prompt cargo (next 30-60 day deliveries) pricing insights, regular monitoring of the market and an overview of key developments that are crucial for those involved in the cement, clinker and petcoke trade to understand. The monthly price assessments synthesize key market information based on CW Research analysts’ ongoing interactions with market participants, including traders, exporters, buyers and other stakeholders involved in the cement, clinker and petcoke trade.

More information about the price assessments can be found here: http://www.cwgrp.com/research/research-products/price-assessments

About CW Group
The Greenwich (Conn.), USA headquartered CW Group is a leading advisory, research and business intelligence boutique with a global presence and a multi-industry orientation. CW Group is particularly recognized for its sector expertise in heavy-side building materials (cement), light-side building materials, traditional and renewable power & energy, petrochemicals, metals & mining, industrial minerals, industrial manufacturing, bulk cargo & shipping, among others. We have a strong functional capability, grounded in our methodical and quantitative philosophy, including due diligence, sourcing intelligence, feasibility studies and commodity forecasting. www.cwgrp.com

PO Box 5263, Greenwich, CT 06831, USA
Liviu Dinu
Market Services & Marketing Consultant
M: +40-744-67-44-11
E: ld@cwgrp.com

This release was published on openPR.