Coal news and updates

Pet coke prices seen soft on lack of demand

October 3: Cement makers in India expect domestic as well as imported prices of petroleum coke to remain on the softer side in November and there is a possibility of a marginal reduction in prices by domestic refiners.

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

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

Experts in the cement industry told ICMW that overall capacity utilisation of the sector had improved to around 65% in September from a low of 55-60% earlier, but still there are pockets where plants are operating below 50% capacity utilisation, particularly in southern India.

An official from a cement company said, "The market is not that good. Southern and eastern India-based cement makers are buying imported pet coke whereas western and northern India-based manufacturers are buying domestic pet coke."