Coal news and updates

Imported pet coke prices rule firm amidst a lull

The offers for imported pet coke in India have been ruling firm for quite some time even as the number of enquiries remains on the lower side, market sources said.

“It appears that most of the buyers have contracted for their requirement till monsoon and because of this there is a lull in the market,” they said.

The lull comes at a time when there is a rumour that Coal India Ltd (CIL), India’s leading coal supplier, is believed to be looking to demand imposition of cess on imported pet coke as the company is finding it difficult to sell its higher grades of coal to cement sector consumers.

“In fact, a number of cement companies have agreed to pay penalty to CIL for not lifting agreed quantity of coal in recent weeks as they are using pet coke and it is economical for them even after paying the penalty,” an official of a cement company claimed.

A cement maker confirmed that he is fully covered for pet coke supplies till July and is currently not looking to contract fresh quantities.

A trader said that there is practically nil stock of imported pet coke at Indian ports and this has restricted stock and sale activity as well.

Meanwhile, offers for Saudi Arabian origin pet coke with sulphur content of above 9.5% has been heard at between $38 and $40 per ton CFR India, while that for US Gulf Coast material was heard at $45-47 per ton. The current offers are almost equal to that prevailing at the beginning of the month (April).

In comparison, the domestic material from domestic refiners is available at ex-refinery price of Rs 2,950 per ton for bulk consumers and at Rs 4,150 per ton for retail consumers.