Coal news and updates

RIL rolls over pet coke prices for November loading

November 03: Reliance Industries Ltd, which had increased the ex-refinery price of petroleum coke for loading in October by Rs 100 per ton after continuously reducing the prices in previous four months, has rolled over the price for loading in November, industry sources said.

“The company has rolled over the price of Rs 6450 per ton ex-refinery for bulk consumers for loading in November because of practically no change in overall demand-supply situation in the country,” they said.

Others said the decision by RIL to roll over the price in November was prompted by a stable trend in prices in international markets, which has not changed during the past 4-5 weeks.

Many in the industry was expecting a reduction in pet coke prices by RIL for loading in November because of steep decline in crude oil prices in international market.

The company had started reducing prices in June as it implemented a reduction of Rs 100 per ton in each months of July, August and September.

The ex-refinery price for bulk buyers for loading in October has been fixed at Rs 6450 per ton as compared to Rs 6350 per ton in September, Rs 6450 per ton in August, Rs 6550 per ton in July, Rs 6650 per ton in June and Rs 6750 per ton in May.

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

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

However, the current economic situation in India does not provide any indication of a betterment in demand-supply situation from main pet coke consuming sector, an official of a leading cement company said.

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

ICMW had reported, quoting industry sources on October 13, that RIL may increase prices by similar margin, if not more, in November, if the cement industry does well, but the movement in prices of imported material too will determine the domestic prices.

The current price of imported pet coke is around $93-95 per ton CFR India, same as that at the beginning of October and down from $98.00 per ton in June, but up from $92-93 per ton quoted at the end of August.

Earlier, in April RIL had increased the price by Rs 100 per to Rs 6750 per ton after rolling it over in March 2014. The company had increased the price by Rs 150 per ton to Rs 6650 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 6500 per ton. The company had increased the price by Rs 300 per ton to Rs 6300 per ton in September 2013 to keep parity with imported price which had increased in view of sharp depreciation in Indian currency.

This means, the company has increased the price of pet coke by Rs 850 per ton from a low of Rs 5900 per ton prevailing in June 2013 to Rs 6750 per ton in April 2014. Compared to Rs 5700 per ton price in February 2013, the price in October 2014 is up by Rs 750 per ton.