Coal news and updates

RIL-Shree contract for pet coke remains open

April 9: Reliance Industries Ltd and Shree Cement Ltd have, so far, failed to enter into a contract for the supply of fuel grade petroleum coke for the April-June quarter, industry sources said.

“The contract was not signed due to differences related to pricing, but it is still open,” the sources said.

“Shree is a price-sensitive consumer. If the price suits it, only then it will buy. Otherwise, will use imported pet coke,” the sources added.

Shree had signed a contract with RIL to purchase about 3.80 lakh tons of pet coke in the January-March quarter, said another source.

ICMW learnt that Shree Cement has secured its steam coal supplies for power generation by procuring nearly 1 million tons of US steam coal for delivery till September and it will procure pet coke only for cement-making.

Industry sources said RIL had gone for a planned maintenance shut-down for three weeks from March 20 and this could restrict availability of pet coke, which might have forced the refiner to avoid entering into any contract for supplies.

Meanwhile, international pet coke prices have remained almost unchanged since the last two months with little possibility of any firmness, a trader said.