Coal news and updates

RIL cuts pet coke prices by Rs 100/ton for Sept loading

September 9: Reliance Industries Ltd (RIL), India’s largest petroleum coke producer, has reduced the ex-refinery price of fuel-grade petroleum coke for bulk consumers for the fourth month running in September 2014, tracking an international price trend, an industry source said.

The company had started reducing prices in June as it implemented a reduction of Rs 100 per ton in each month from July till September.

The ex-refinery price for bulk buyers for loading in September will now be Rs 6,350 per ton as compared to Rs 6,450 in August, Rs 6,550 per ton in July, Rs 6,650 in June and Rs 6,750 per ton in May.

Though information from other refiners like Essar, HPCL and BORL which generally follow RIL in fixing their pet coke price is not available at present, they are also likely to follow the leader so far as fixing their September 2014 loading prices is concerned, sources feel.

The cut in prices in August was largely due to continued softness in imported pet coke prices, which fell by around $5 per ton from June-September, 2014, including a softness in freight rates, industry sources said.

In June, the cut in price was basically prompted by an appreciation in the Indian rupee that has made imports cheaper, sources said.

“Domestic pet coke prices are likely to remain soft in October as well due to a softness in imported pet coke prices,” they added.

“Current prices of imported pet coke are around $92-93 per ton CFR India, down from $98 per ton in June,” the sources said.

“As the cost of using imported pet coke came down, domestic refiners opted to reduce their prices to retain customers,” an official from a cement company told ICMW.

Earlier, in April, RIL had increased the price by Rs 100 per to Rs 6,750 per ton after rolling it over in March 2014. The company had increased the price by Rs 150 per ton to Rs 6,650 per ton for February loading.

Prior to February 2014, RIL had last increased the price by Rs 200 per ton in November 2013 to Rs 6,500 per ton. The company had increased the price by Rs 300 per ton to Rs 6,300 per ton in September 2013 to keep parity with the imported price which had increased in view of a sharp depreciation in the Indian currency.

This means, the company has increased the price of pet coke by Rs 850 per ton from a low of Rs 5,900 per ton prevailing in June 2013 to Rs 6,750 per ton in April 2014.

Compared to the price of Rs 5,700 per ton in February 2013, the same in September 2014 is up by Rs 650 per ton.