Coal news and updates

RIL increases pet coke prices for April loading

April 4: Reliance Industries Ltd (RIL), India's largest petroleum coke producer, has increased the ex-refinery price of fuel-grade petroleum coke for loading in April 2014 by Rs 100 per ton, an industry source said.

The increase in the price was largely prompted by an appreciation in the Indian currency over the past few days that led to a slight increase in the price of the imported material even as international pet coke prices were largely stable during the past one month or so, they added.

RIL had rolled over the price in March 2014 after increasing the same 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.

The price increases in February and April were largely on account of the rupee appreciation even as overall demand was more or less constant due to the not-so-encouraging situation prevailing in the Indian cement market. The cement sector is the biggest consumer of pet coke at present.

RIL had kept October loading prices unchanged after increasing it by Rs 300 per ton for September loading to Rs 6,300 per ton. Earlier, it had increased the price by Rs 100 per ton in July from Rs 5,900 per ton.

In both July and September, 2013, the company had increased the price to off-set the impact of the depreciation in the Indian currency versus the US dollar.

Though information from other refiners like Essar, HPCL and BORL who 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 April 2014 loading prices are concerned, sources feel.

RIL had increased the price of its pet coke by Rs 600 per ton between March and November 2013 from a low of Rs 5,700 per ton in February 2013.

Earlier, between December 2012 and February 2013, the Indian refiners had rolled over the prices before resorting to increase in March and April 2013. They had cut prices by Rs 400 and Rs 150 per ton in November 2012 and October 2012 respectively.