Coal news and updates

Pet coke prices seen soft on lack of demand

September 5: Cement makers in India expect the domestic as well as imported price of petroleum coke to remain on the softer side in October, but domestic refiners may increase the price a bit if the rupee continues its downward journey against the dollar.

"The current demand for pet coke is ruling weak in the country as the cement industry is not doing well due to a slowdown in demand from the construction sector as well as in rural areas. Because of this, their pet coke consumption is slightly on the lower side," an official of a leading refinery said.

However, an official with a cement company said, "The market is not that good. South and eastern-India-based cement makers are buying imported pet coke whereas western and north India-based manufacturers are buying domestic pet coke."

Imported pet coke:

Meanwhile, the price of imported pet coke is ruling soft for a long period. The current price of imported pet coke is around $92-93 per ton CFR India for 6.5% sulphur content.

"No major deals are happening in the Indian market although companies like Dalmia Cement are looking to sell pet coke that they had contracted earlier and the material will arrive soon whereas Jaiprakash Industries is offering to sell from its stock of imported material," a source claimed.

"The current sluggish demand trend for pet coke from the cement makers is likely to continue till September and is likely to revive after cement demand picks up in October," the official said.

At present cement plants in India are operating at 60% capacity utilization.