Coal news and updates

China buying Saudi pet coke; price cut unlikely

Amidst lower deals struck by Indian companies, Saudi Arabian pet coke is being purchased by China, thereby reducing the prospect of a decline in prices, industry sources said.

“China is still buying coke not only from the US, but from Saudi Arabia as well. Recently, some Saudi cargo volumes were on their way to China recently,” a trader said.

However, Indian companies are not making huge commitments on the US Gulf material in anticipation that prices will decline to $38-$39 per ton, he said.

“Indian companies were expecting the offers to soften by $2-3 per ton in view of softness in freight rates, but then the freight rates have again risen and as such they are going slow,” the trader claimed.

Meanwhile, according to the trader, Saudi Arabian refiners are booked for their pet coke supplies till April.

Indian companies like Dalmia (2 vessels) and UltraTech (1 vessel) have booked a few cargoes of Saudi pet coke last month, but there is not much activity, the trader added.