Coal news and updates

RIL hikes pet coke prices by Rs 100/ton for Oct loading

October 13: After cutting prices for four consecutive months starting June, Reliance Industries Ltd (RIL), India’s largest petroleum coke producer, has increased the ex-refinery price of fuel grade petroleum coke for bulk consumers for the month of October 2014 loading, taking a cue from the slight increase in demand and firmness seen in international pet coke prices, an industry source said.

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

The ex-refinery price for bulk buyers for loading in October has been fixed at Rs 6,450 per ton as compared to Rs 6,350 per ton in September, Rs 6,450 per ton in August, Rs 6,550 per ton in July, Rs 6,650 per ton 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 prices, is not available at present, they are also likely to follow the leader so far as fixing their October 2014 loading prices are concerned, feel sources.

The increase in prices in October was largely due to anticipation of higher demand from cement-makers who anticipate requirements for cement to move northwards post-monsoon and also because of a slight firmness of $1-3 per ton seen in imported pet coke prices, they said.

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

Many in industry feel that RIL may increase prices by a similar margin, if not more, in November, if the cement industry does well, but the movement in prices of the imported material too will determine domestic prices, they added.

 
“The current price of imported pet coke is around $93-95 per ton CFR India, down from $98 per ton in June, but up from $92-93 per ton quoted at the end of August,” the sources said.

“As the cost of using imported pet coke came down, domestic refiners opted to reduce their prices to retain customers. Now, with a slight firmness in international prices, coupled with indications of a rise in demand, prices of the domestic material have increased,” an official from a cement company told ICMW.

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

Prior to February 2014, RIL had last increased prices by Rs 200 per ton in November 2013 to Rs 6,500 per ton. The company had increased the rates 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 prices 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 Rs 5,700 per ton price in February 2013, the price in October 2014 is up by Rs 750 per ton.