Petroleum coke prices down $2 on muted demand, declining coal values
10 Sep 2015
Prices for imported fuel grade petroleum coke delivered to India fell $2/mt this week on a combination of factors including sluggish demand, sliding coal values and greater availability of cheaper material from Saudi Arabia, sources said Wednesday.
Platts assessed the weekly 30-60 day prices of fuel-grade petroleum coke with 6.5% sulfur at $74.25/mt CFR India East, and $73.25/mt CFR India West, and both are down $2 from a week ago.
Petcoke prices have been under pressure as very few cement companies are buying currently, and also coal prices have been falling, a north India-based trader source said.
Saudi petcoke is being offered at cheaper prices and despite its very high sulfur content is posing competition to US Gulf coast petcoke, said the trader.
Offers for US Gulf Coast petcoke with 6.5% sulfur are at around the mid-$70s/mt CFR on Supramax cargoes, he said.
A south India-based trader said coal prices had been sliding and petcoke prices had to adjust accordingly.
He said the price of US Gulf coast petcoke with 6.5% sulfur is ranging from $72.50-$74.50/mt CFR basis Supramax vessel.
An end-user source in southern India said his company had bought a Supramax of US petcoke with 6.5% sulfur at around $74/mt CFR east coast India for October loading.
Meanwhile, an east India-based trader said he had received an offer for a Panamax of Canadian petcoke with a heating value of 7,200 kcal/kg NAR, 3% ash and 6-7% sulfur at around $70/mt CFR. He was still trying to see if there was a buyer for this cargo on either the east coast or west coast.
Sources said a leading cement company had sought offers for Supramax as well as Panamax cargoes of US petcoke with 6.5% sulfur, and based on the offer prices received, it would decide on the final shipment.
According to a west India-based trader source, there are very few enquiries for petcoke cargoes, and most of these are not serious. The fair price for a Supramax cargo in the current market would be at around $74-$75/mt CFR east coast India, this source said.
Freight rates for Supramax ships are hovering at around $29/mt. Demand is weak from the cement sector in India as overall economic growth has been slow, and cement companies are running below their capacities.
A second south India-based end-user source said deals are possible at low $70s/mt CFR on Supramax vessels as some big traders with petcoke market positions now wanted to liquidate these.
Offers for US petcoke with 6.5% sulfur are around $74/mt CFR west coast India for October loading, as September cargoes are already covered, another west India-based trader said.
Panamax freight rates are tumbling, but Supramax freight rates are still firm in the low $30s/mt, he said.
FOB prices of US Gulf Coast petcoke with 6.5% sulfur are about $44/mt, this trader source said. There are some enquiries floating in the market, but nothing is getting concluded, he said.
The north India-based trader source said Saudi petcoke with sulfur above 8% is being offered in the high-$50s/mt CFR India, and some buyers are finding it lucrative. Although, he had not heard of any deals recently.
The price differential between US petcoke and Saudi material is still substantial, he said.
The second west India-based trader said while he is not presently dealing in Saudi petcoke, it is being offered at $58-$59/mt CFR.
source: http://www.platts.com