Coal news and updates

Cement makers bring in Saudi Arabian pet coke

April 14: At least two cement-makers recently booked 3-4 cargoes of Saudi Arabian pet coke at very attractive rates, industry sources said.

“Dalmia Cement and Shree Cement recently booked 4-5 vessels of the Saudi material at prices ranging from $66-$68 per ton CFR India,” they said.

“Some small cargoes were recently loaded from Jubail Port in Saudi Arabia in recent months, but these are basically 1-2 vessels a month,” they said, adding that the material is mainly coming to India as no other country, except China, generally buys the high sulphur material.

Before finalising the deals, the cement-makers reportedly indulged in aggressive negotiations.

“In fact, Shree has already bought three vessels. Initially, the company, like other cement-makers, was not looking to purchase the Saudi cargo. However, after the refiner matched the bid price of $66 per ton, Shree opted to book a few vessels on a trial basis,” the source added.

Asked if arrival of the Saudi Arabian pet coke will have any impact on overall prices, the source said, “Right now they are exporting in small quantities as they have limited loading facilities because their conveyor loading is not working properly. But if Saudi Arabia plans to export in a full-fledged way, then prices will be under pressure. But right now there are no chances of prices coming under pressure.”

“Their problem lies in loading of the material and because of that everything is hanging in balance. I think, right now they can load only 2-3 vessels per month. Right now their conveyor belt loading system is down and as such they are loading by trucks and sending to the ports for loading onto vessels,” the source added.