Delivered-India prices of fuel-grade petroleum coke remained stable this week, taking a breather after recent steep falls, sources said.
However, market participants were divided about the near-term outlook because of high stockpiles at ports.
Platts assessed the weekly 30-60 day prices of fuel-grade petroleum coke with 6.5% sulfur at $53/mt CFR India East, and $52/mt CFR India West, both unchanged from a week earlier.
A west India-based trader source said that he is offering Supramax cargoes of US Gulf Coast petcoke with 6.5% sulfur in the mid-$50s/mt CFR India levels, while bids are in the low-$50s/mt CFR.
Nearly all refineries have sold their cargoes for the year and only traders with positions are currently offering, he said.
He said FOB prices were hovering between $26 and $30/mt and pegged the delivered-India prices at about $52-$53/mt CFR.
"Prices will be range-bound but with a downward bias till December," he said.
Demand has risen from two months ago as there are some inquiries, this source said.
"Some cement companies' consumption has increased but it is not significant," another west India-based trader said, adding that stock-and-sale business for petcoke at ports has picked up, similar to thermal coal.
He said around 700,000 mt of petcoke has been stocked up at various Indian ports.
He pegged the CFR price of US Gulf Coast petcoke at about $53-$54/mt CFR on Supramax vessel basis.
An end-user source said that consumers along the east coast India prefer to buy imported petcoke compared with domestic material, as it is more cost effective. DEMAND MIGHT PICK UP
Demand for petcoke might rise from mid-November as construction activity picks up and cement companies' capacity utilization is expected to increase, the first west India-based trader said.
"Even if the capacity [utilization] goes up by 10-15%, it will give a fillip to petcoke imports," he said.
The second west India-based trader said petcoke prices had fallen significantly in the past four weeks.
He heard that a cement company had bought a Supramax cargo of US petcoke at $52-$53/mt CFR east coast India for November loading, but could not provide additional details.
"The cement industry is enjoying this petcoke price crash," he said.
Delivered-India petcoke prices have slumped nearly $20/mt in the past six weeks amid oversupply and weak demand. SAUDI PETCOKE
The first west India-based source said that he is offering Supramax cargoes of Saudi petcoke with more than 8% sulfur at mid-$40s/mt CFR while Indian expectations are in the low-$40s/mt CFR.
The second west India-based source said there is a two-month cycle to get delivery of US petcoke cargoes and because prices are on the slide, some Indian cement companies are tweaking their boilers to accommodate Saudi Arabian material currently.
He pegged the Supramax freight rates from Saudi Arabia to India at about $8-$9/mt.
Another end-user source said that there was an offer for a Supramax cargo of Saudi petcoke at around $42/mt CFR India.
The third west India-based trader said that Saudi petcoke is finding more takers because of its price advantage despite the high sulfur content.
"If companies can save money by using high sulfur Saudi material, they will go for it," he added.
