Coal news and updates

RIL hikes pet coke prices by Rs 200/t for Mar loading

After increasing the price in February, Reliance Industries Ltd (RIL) has again hiked it for petroleum coke by Rs 200 per ton for loading in March, mainly in view of its depleting inventory levels and a modest rise in international freight rates, industry sources told ICMW.

This is the second consecutive month of an increase after a decline in eight months in a row. RIL had increased the price of pet coke by Rs 300 per ton for loading in February.

Sources said that the inventory level with RIL has become so low (by the end of February) that the company is finding it difficult to load cargo. Earlier, RIL’s inventory was down to around 120,000-140,000 tons as in end-January from a high of around 170,000-180,000 tons at the beginning of the month.

Besides, the slight firmness in international freight rates and rupee’s fluctuations vis-à-vis dollar prompted RIL to hike prices, they said.

Following the increase, RIL’s price of pet coke for bulk consumers for loading in March stands at Rs 2,800 per ton (ex-refinery) and that for retail consumers at Rs 4,000 per ton, sources said.

Earlier, the company had cut prices by Rs 200 per ton for loading in January to Rs 2,300 per ton (bulk) and Rs 3,500 per ton for retail.

RIL, which fixes pet coke prices on the first working day of each month, had decided to keep prices unchanged at Rs 3,700 per ton in December.

In November 2015, the company had initially cut pet coke prices (retail) by Rs 800 per ton to Rs 4,400 per ton and again on November 25 by Rs 700 per ton to Rs 3,700 per ton to retain its customers in view of the sharp fall in international markets.

While the decline in domestic pet coke prices was on account of a sharp fall in the imported material’s rates, the decline in the prices of the latter was prompted by availability of additional material in the world market amidst fall in demand from China and setting up of fresh capacity in Saudi Arabia, sources said.

With China out of the market and extra material coming up from Saudi Arabia, there was excess supply in the world market that prompted Indian refiners to cut prices to retain their domestic customer base.

Following table gives monthly retail prices of RIL for loading in respective months, starting November 2014: