Coal news and updates

Pet coke prices seen moving range-bound

November 11: Cement makers in India expect prices of imported petroleum coke to remain range-bound in the coming days on lack of development either on the supply or buy sides.

“There is not much demand for pet coke in the country at present because the main consumer, the cement industry, which had showed a slightly improved performance in September, is unlikely to witness any dramatic spurt in demand,” an official of a cement company said.

Moreover, if the prices of imported steam coal, particularly of high sulphur and high calorific value remain soft, the possibility of which looks strong at present, there would be pressure on domestic refiners to reduce pet coke prices, they added.

Meanwhile, Indian refiners have increased price of domestic pet coke by Rs 200 per ton for loading in November.

Meanwhile, a report said that Jaiprakash Industries is in the market to procure imported pet coke for delivery in January 2014, but the report could not be confirmed.

The price of imported pet coke is hovering at $101-102 per ton CFR India and a media report suggested that an Indian cement maker had recently concluded a deal to buy one parcel of imported pet coke at $104 per ton CFR.

However, a cement company official said he has not heard of any deal at $104 per ton CFR India. 

“So far as I know, the price is hovering around $100-$101 per ton CFR India. Even if any deal was finalised at $104 per ton, I presume that it will be a deal for a very small quantity of may be one parcel,” the official added.

Meanwhile, the international per coke markets maintained their steady outlook against a background of a correction in coal prices and a dynamic freight sector.

For mid-sulphur (4-5.5%), a deal out of the US Gulf for a 4.5% supramax cargo loading in December closed at $70.00 per ton FOB, basis 7,500kc NAR for eventual delivery into Turkey. The product had a low HGI of 35-40.

Venezuela enjoyed a reasonable month if one goes by the recent loading standards. MCR understands that at least six cargoes were loaded this month, but there is still a serious backlog on laycans.

Meanwhile, prices into China last week rose a bit, mainly due to freight, heading towards $50.00 per ton for supramaxes loading out of the US Gulf.