Coal news and updates

RIL keeps Dec pet coke prices unchanged after Rs 1500/t cut in Nov

India Coal Market Watch

 December 02: After having twice cut prices in November, Reliance Industries Limited (RIL), India’s largest pet coke producers, has decided to keep the basic price of pet coke unchanged at Rs 3700 per ton for December loading by rakes tracking international trend, industry sources told ICMW.

 The company had in November initially cut prices by Rs 800 per ton to Rs 4400 per ton and again on November 25 by Rs 700 per ton to Rs 3700 per ton to retain its customers in view of sharp fall in international markets.

 Industry sources said the company was panicked with drastic fall of pet coke prices in in international market as the US refiners, under commitment to supply higher quantities, drastically cut prices and Saudi Arabian refineries, virtually left with no buyers in absence of Chinese demand, continued to cut offer prices.

 Taking a cue from RIL, other refiners like Essar and MRPL too have cut prices accordingly to retain customers, industry sources said.

 Not only is the softness in international prices, a higher inventory with domestic refiners too had prompted them to cut prices in November.

However, with international pet coke prices having improved a bit, RIL appears to have decided to roll over the price for loading in December and the same would be followed by other refiners, they feel.

In October also, RIL had cut prices by Rs 550 per ton in two tranches of Rs 250 and Rs 300 per ton.

Following table gives monthly price of RIL for loading in respective months starting November 2014: