Category Archives: Pet Coke

India: IOC increases pet coke prices across refineries

Indian Oil Corporation Ltd. (IOC), the country’s second-largest petroleum (pet) coke producer, has sharply increased prices of the fuel-grade raw petroleum coke (RPC), from various refineries with effect from 23 Jul’21.

  • IOC’s revised price for the material at its Koyali refinery for road supplies is at INR 13,930/tonne (t) compared to its last month’s price of INR 11,620/t, an increase of INR 2,310/t.
  • The price for the rake loading category has also been increased by INR 2,310/t to INR 13,730/t from INR 11,420/t seen last month.
  • Pet coke price at the Panipat refinery for general states has been revised to INR 13,860/t, over its last month’s price of INR 11,540/t, an increase of INR 2,320/t.
  • Price for Punjab, Haryana, Jammu and Kashmir and Chandigarh has also been revised to INR 13,860/t, over its last month’s price of INR 11,540/t, an increase of INR 2,320/t.
  • Price at the Paradip refinery for road supplies has been revised to INR 12,230/t over its last month’s price of INR 9,920/t, an increase of INR 2,310/t.
  • Price for rake supply has been revised to INR 12,030/t from INR 9,720/t, an increase of INR 2,310/t over last month’s price.
  • Price ex-Haldia refinery for road supplies has been revised to INR 12,400/t over its last month’s price of INR 10,090/t, an increase of INR 2,310/t.
  • The price applicable for rake supplies has also been increased by INR 2,310/t to INR 12,200/t from INR 9,890/t in the last month.

 

Price commentaries

Notably, this is yet another all-time high price uptick for raw-petroleum coke at all the refineries. This is mainly because material availability has remained persistently tight in the international market.

The price increases have been mostly uniform by INR 2,310-2,320/t at all refinery locations. Last month, IOC’s price revision varied from (-) INR 510/t to INR 190/t at different refineries.

Comparatively, the pet coke price from the country’s biggest producer, Reliance Industries (RIL),has been increased by INR 1,294/t in the current month. In the last month, RIL had increased the price by INR 132/t.

Prices for rake supplies continue to be lower than road supplies at Koyali, Paradip and Haldia refineries by INR 200/t.

It may be noted that prices of pet coke have firmed up over the past couple of months, particularly for US-origin pet coke. Accordingly, market participants were expecting an increase in the current month’s domestic pricing for pet coke.

 

India: MMTC floats sale tender for 28,400 t of coke products

MMTC Ltd has floated an open tender for domestic sale of lam coke, coke breeze and nut coke on truck load/rake load basis (loaded quantity in each rake of 2,200 t) for 15,400 t of lam coke (in seven lots, 2,200 t each), 11,000 t of coke breeze (in five lots) and 2,000 t (approximately) of nut coke (in four lots, with lot size of 500 t each) to interested parties/buyers. The freight is to be borne by the buyer. The techno-commercial bids as well as price bids have to be submitted electronically by 2 p.m. on 12 Aug’21.

 

IOCL increases pet coke price from various refineries

Indian Oil Corporation Ltd. (IOC), the country’s second-largest petroleum (pet) coke producer, has sharply increased prices of fuel grade RPC (Raw Petroleum Coke), for various refineries w.e.f. 23 Jul’21. Notably, this is yet another all-time high price uptick for RPC at all the refineries, which is mainly because material availability has remained persistently tight in the international market.

 

India: Anode grade raw pet coke prices drop moderately

Anode grade raw petroleum coke, which is also known as green petroleum coke (GPC) in international markets, recently started showing moderate price corrections. This grade also had a long price uptrend, like the fuel grade, in international markets till recently.

Notably, petroleum coke having low sulphur and lower metals content are suitable for use in anode grade. The sulphur in GPC generally ranges from 0.8% to 5%. In case of metals, the important inputs are vanadium (the most critical), nickel, ferrous, and silicon etc. Lower the metal content, better is the quality and higher is the price of GPC. Different countries and refineries have varying quality parameters due to which prices vary substantially from one source to another, unlike the fuel grade coke. Notably, the present price of the fuel grade on CFR India basis is $157/t.

Generally, most of the calciners engaged in imports source different qualities of anode grade coke keeping in view the required sulphur content in the finished product i.e. calcined petroleum coke (CPC). The major use of CPC is in the aluminum industry in which sulphur content is 3.5%, but for use in the steel industry it is less than 1.5%.

 

GPC anode grade

The availability of anode grade coke has improved relatively. Thus, prices are cooling off a bit, with coke of different origins and varying quality dropping by up to 5%. Indian calciners, after getting allocation of 1.4 million tonnes (mnt) for FY’22 by the Directorate General of Foreign Trade (DGFT) in the last week of May’21, have already booked cargo from different countries like Oman, Russia, the US, China and Indonesia.

The low sulphur anode grade (0.8S) with vanadium of 150 ppm of US Gulf Coast (USGC)was sold in the range of $360-365/t FoB, a reduction of around $30-35/t. The low sulphur GPC of Chinese origin with sulphur content of 0.8% with vanadium of 150ppm is at around $400-410/t FoB, a reduction of around $50-60/t.

GPC of Chinese origin of suphur2%,and vanadiumof 150-250ppm, is at around 350-355/t, an increase of $5/t. However, GPC with 3% sulphur and vanadium of 200-250 ppm has dropped by about $5/t to 300-305/t.

A cargo from Oman was sold to an Indian calciner at $248/t CFR last month.

Galveston Bay (US) Coke with high sulphur and and vanadium was sold at around $235/t FoB to an Indian calciner last month.

The ocean freight from USGC to Indian Ports for a Handymax vessel (30,000-35,000 t), in which GPC is generally imported, is in the range of $80-85/t. From China, it is $50-55/t.

CPC Although green coke prices have mostly dropped, CPC prices remained stable. This is mainly due to strong demand from the aluminum industry with the metal at a historically high level on the London Metal Exchange (LME) of around $2500/tin the first week of July.
The current pricesof CPC from USGC, on FoB basis, with 3%sulphur and vanadium of 250-300ppm, is in the range of $430-440/t.

The FoB China CPC price for 3%sulphur and vanadium of 250-300ppm has increased to $460-470/t, a gain of about $10/t.

As the green coke prices have shown some corrections, it is expected that in the coming months this trend might be seen in CPC prices too, as the input cost for calciners would reduce.

 

India: Pet coke production growth outpaces all petroleum products

India’s petroleum coke production by domestic oil companies has been consistently increasing alongside the production of all other petroleum products.

Over the past decade, it has been observed that the aggregate production of all petroleum products has grown to 262.9 million tonnes (mn t) in FY 2021, as against 196.2 mn t in FY 2011, which translates to a moderate growth of 3.4% per year.

Meanwhile, the production of pet coke has grown remarkably to 14.6 mn t in FY 2021 from 2.8 mn t during FY 2011, which shows an outstanding growth of 421% over the decade, or a growth of 42.1% per year.

Due to this high growth in production of pet coke, its share among all petroleum products has increased sharply. From a very low market share of 1.4% in FY 2011, it has increased to 5.6% in FY 2021.

The product-wise petroleum production figures are tabulated below:

Products May’21 May’20 Change (%) Apr-May’21 Apr-May’20 Change (%)
LPG 1.01 0.96 4.6 2.05 1.92 6.9
Naphtha 1.60 1.41 13.6 3.27 2.95 10.9
MS Total 3.15 2.37 33.2 6.37 4.45 43.4
ATF 0.75 0.37 101.8 1.54 0.89 71.6
SKO 0.17 0.18 -7.7 0.32 0.38 -17.2
HSD Total 8.34 7.38 13.0 17.11 14.00 22.2
LDO 0.06 0.03 122.1 0.13 0.07 75.3
Lubes 0.08 0.06 30.6 0.16 0.11 50.8
FO 0.63 0.75 -16.1 1.12 1.49 -24.8
LSHS 0.03 0.03 24.0 0.07 0.05 34.6
Bitumen 0.37 0.35 4.6 0.89 0.43 106.5
RPC/Petcoke 1.03 0.98 4.9 2.16 2.00 8.1
Others 2.70 2.40 12.5 5.64 4.51 25.1
Total 19.93 17.28 15.3 40.82 33.24 22.8

(Source: Govt Data)

The total production of petroleum products during May’21 was 19.93 mn t, compared with 17.28 mn t in May’20. Thus, there was a double-digit growth in production by 15.4%.

On cumulative basis, the total production during Apr-May’21 is recorded as 40.82 mn t, up by 22.8% as against 33.24 mn t during Apr-May’20.

 

Production growth of pet coke augmented due to commissioning of new refineries

The production of all petroleum products as compared to percentage share of pet coke production is represented graphically from FY 2011 to 2021. The production data includes both fuel-grade and anode-grade pet coke, while its sales also includes calcined petroleum coke (CPC) besides raw pet coke.

The chart clearly indicates that the production growth of pet coke has been much higher as compared to the growth in overall production of other petroleum products. This is mainly due to commissioning of new refineries with delayed coker units (DCU) to increase the production of light and middle distillates by processing heavy residue, which yield light pet coke as a byproduct.

New refineries that were commissioned during the past decade include Nayara Energy (erstwhile Essar Oil), HPCL-Mittal Energy Limited (HMEL)’s Guru Gobind Singh Petroleum Refinery at Bhatinda in Punjab, Bharat Oman Refinery Limited (BORL)’s Bina refinery in Madhya Pradesh, Numaligarh Refinery Limited (NRL) in Assam and IndianOil’s Paradip refinery in Odisha.

Besides these new refineries, some of the existing refineries also commissioned DCUs to increase the light and middle distillates. These include IOC Koyali, BPCL Kochi, MRPL Mangalore and CPCL Chennai.

All these refineries have jointly contributed towards the increase in production of pet coke over the period under analysis. The major surge was during 2010 to 2013, after which the production growth has moderated.

 

India: Bharat Petroleum marginally hikes pet coke prices across refineries

India’s state-run Bharat Petroleum Corporation Limited (BPCL) has increased petroleum coke prices at its two refineries with effect from 1 Jul’21.

At BPCL’s Bina refinery in Madhya Pradesh, pet coke price for road supplies is revised to INR 12,912/tonne (t), an increase of INR 98/t compared with last month’s price of INR 12,814/t.

The price for rail supplies is also increased by INR 98/t to INR 12,962/t as against last month’s price of INR 12,864/t.

At BPCL’s Kochi refinery in Kerala, pet coke price for rail supplies is revised to INR 10,890/t, an increase of INR 29/t from last month’s price of INR 10,861/t.

There are no road supplies of pet coke from BPCL’s Kochi refinery.

Production and dispatch statistics of BPCL:

Average production of pet coke at BPCL’s Bina refinery is 40 kilotonnes (kt) per month, out of which about 15 kt is consumed in its captive power plant (CPP). Thus, around 25 kt of pet coke is sold in the domestic market, mostly to cement manufacturing companies in Madhya Pradesh and Rajasthan.

Pet coke is dispatched either by rail or by road transport from the Bina refinery. Rail supplies of pet coke cost INR 50/t more than road supplies.

Notably, there were no sales of pet coke from Bina refinery during Jul-Oct’20 as it was being fully consumed by the CPP, but from Nov’20 onwards the refinery started offering certain quantities for sale to customers.

The offered quantity gradually increased to about 15-20 kt per month. However, it was learnt that pet coke availability for sale to customers had further reduced from Apr’21 to around 10 kt.

Pet coke production at BPCL’s Kochi refinery averages around 80-85 kt per month, which is mostly supplied to cement manufacturers. It is further understood that apart from the general prices as mentioned above, the company offers customer-specific prices to the major cement companies.

 

India: Domestic pet coke sales up 56% in Apr-May’21

India’s total domestic sales of petroleum (pet) coke in Apr-May’21 showed a sizeable growth of 56.2% y-o-y due to increased domestic consumption by cement manufacturers.

However, there was a marginal decline in the country’s pet coke sales by 3.6% y-o-y in May’21.

 

Comparisons of pet coke sales – FY22 vs FY21

FY May Apr-May
2021-22 0.582 1.285
2020-21 0.604 0.823
Change (-)3.6% 56.2%

Source: Oil companies’ data | Figures in kilotonne (kt)

 

Notably, the abovementioned domestic sales data includes all types of petroleum coke, including both fuel grade and anode grade (LS) as well as calcined petroleum coke.

Generally, fuel grade petroleum coke, produced domestically by various oil companies, has high sulphur content ranging from 6% -8%. Anode grade petroleum coke has lower sulphur content ranging from 0.6%-2.5%, which is produced at select refineries of IndianOil (IOCL) and Numaligarh Refinery Limited (NRL).

The above-mentioned domestic sales data is further analysed state-wise and year-wise (FY22 versus FY21) as follows:

States May’21 May’20 Change (%) Apr-May’21 Apr-May’20 Change (%)
Rajasthan 143.0 54.5 162.3 265.2 66.7 297.8
Gujarat 57.6 101.1 -43.0 135.7 142.3 -4.6
Punjab 53.0 60.8 -12.9 121.9 76.3 59.9
Chhattisgarh 58.1 35.9 61.7 119.5 96.3 24.1
Karnataka 39.1 37.9 3.3 101.3 39.0 159.7
Madhya Pradesh 46.6 52.3 -10.9 96.9 79.9 21.2
Odisha 29.7 60.6 -50.9 75.8 66.1 14.8
Himachal Pradesh 29.0 8.3 250.2 74.3 9.5 682.4
Tamil Nadu 31.7 36.7 -13.8 73.1 46.8 56.1
Andhra Pradesh 33.7 37.0 -8.9 70.5 45.8 54.1
Others 60.6 118.7 -48.9 150.9 153.9 -1.9
Total 582.0 603.7 -3.6 1285.1 822.6 56.2

 

It is noted that pet coke sales in Rajasthan continue to be the highest. It is mainly due to the concentration of cement factories owned by companies such as UltraTech, ACC Limited, Ambuja Cement, Shree Cement, JK Cement, JK Lakshmi Cement, Mangalam Cement, Wonder Cement etc, who are the major consumers of pet coke.

The state of Rajasthan has registered a growth of almost 300% in domestic pet coke sales during Apr-May’21, while the maximum reduction was seen at Gujarat by about 5%.

Up until recently, Indian domestic demand for pet coke had been largely underpinned by resurgent demand from the cement industry due to increased infrastructural activities across the country.

But since around the middle of June this year, pet coke import prices increased substantially amid global supply concerns, while Indian demand collapsed due to competitively priced thermal coals and exorbitant freight rates.

At present, major Indian cement producers have been largely refraining themselves from making spot bookings of seaborne pet coke in consideration of unviable prices and supply uncertainty, particularly for US-origin material.

 

India: Reliance hikes pet coke price for 13th month in a row

Reliance Industries Limited (RIL) increased its petroleum coke price with effect from 1 Jul’21 to INR 12,783/tonne (t) ex-Jamnagar refinery in Gujarat, over its last month’s price of INR 11,489/t, an increase of INR 1,294/t.

Nayara Energy (erstwhile Essar Oil) also increased its pet coke price to INR 12,826/t ex-Vadinar refinery in Gujarat, over its last month’s price of INR 11,531/t, an increase of INR 1,295/t.

Meanwhile, Indian-delivered prices for seaborne petroleum coke have substantially increased over the past three-week period, while Indian demand has largely collapsed due to competitively priced thermal coals and exorbitant freight rates.

The current average prices of US-origin pet coke, with 6.5% sulphur content, are assessed at $144-145/t on CNF India basis, as against the earlier prices of $130-131/t, an increase of $14/t in this month so far.

Offers for pet coke from Saudi Arabia, with 9% sulphur content, are presently assessed at around $131-132/t CNF India, up by $7/t compared with $124-125/t prevailing at the beginning of the month.

The US Gulf Coast (USGC) FoB prices of pet coke (6% sulphur), widely accepted as the reference across international markets, have increased by $11/t to $93-94/t, compared with $82-83/t at the beginning of this month.

Average shipping freight rates from USGC to Indian ports for Supramax vessels of 50,000-55,000 deadweight tonnes (DWT) are currently assessed at $54.50/t, compared with $44.50/t at the end of last month, an increase of $10/t.

 

Price commentaries

RIL’s current price hike comes after a moderate increase of INR 132/t last month. In fact, there have been continuous price upticks every month starting from June last year, when the price was at INR 5,697/t, resulting in an increase of INR 7,086/t or almost 125% in the past 13 months.

Pet coke prices of Nayara Energy continue to be in tune with RIL’s, having a nominal difference of just INR 43/t in the current month.

This consistent price rise is supported by demand for pet coke by cement manufacturers for road construction and other infrastructural projects. Even though domestic production of pet coke has gradually increased, it is still lower than optimum levels.

Furthermore, lower availability of pet coke in the international market has pushed up prices. There is also a spurt in the prices of imported steam coal, which is primarily used as a substitute for pet coke by cement makers.

 

India: Pet coke import prices stay firm on tight supply, higher freights

Petroleum (pet) coke import prices have substantially increased over the past three-week period, while Indian demand has largely collapsed due to competitively priced thermal coals and exorbitant freight rates.

The Indian market has been lately observing a considerable decrease in enquiries for seaborne pet coke, alongside lesser number of spot transactions other than existing long-term contracts (LTC). Indian cement companies typically procure part of their pet coke imports through LTC.

Presently, however, major Indian cement producers have been largely refraining themselves from making spot bookings of seaborne pet coke in consideration of unviable prices and supply uncertainty, particularly for US-origin material.

At the same time, the Indian cement industry has been temporarily switching to imported thermal coal like Australian high-calorific value (CV) and US mid-CV varieties as alternative fuels, which are relatively cheaper.

Notably, imported thermal coals on a comparative heat-value basis from the above-mentioned origins are available to Indian end-users at prices as low as $85-107/tonne (t) for Indonesian 4,200 GAR and South African 5,500 NAR RB2 coals respectively.

 

Imports subside sharply on subdued buying interest

India’s pet coke imports decreased sharply by 64.8% y-o-y to 1.78 million tonnes (mn t) in Jan-May’21, compared with 5.05 mn t during the corresponding five months of last year, as per vessel lineup data compiled by CoalMint.

This is understood to have been primarily driven by reduced usage of high-priced pet coke and increased coal consumption in the fuel mix by cement producers to manage their production costs.

 

Price assessments

The current average prices of US-origin pet coke, with 6.5% sulphur content, are assessed at $144-145/t on CNF India basis, as against the earlier prices of $130-131/t, an increase of $14/t in this month so far.

Offers for pet coke from Saudi Arabia, with 9% sulphur content, are presently assessed at around $131-132/t CNF India, up by $7/t compared with $124-125/t prevailing at the beginning of the month.

The US Gulf Coast (USGC) FoB prices of pet coke (6% sulphur), widely accepted as the reference across international markets, have increased by $11/t to $93-94/t, compared with $82-83/t at the beginning of this month.

Average shipping freight rates from USGC to Indian ports for Supramax vessels of 50,000-55,000 deadweight tonnes (DWT) are currently assessed at $54.50/t, compared with $44.50/t at the end of last month, an increase of $10/t.

 

Outlook

Even as Indian cement players await price corrections in the international pet coke markets, not too much is expected in the short term because of tight availability in key source markets like the US and Saudi Arabia.

Going forward, Indian market participants expect a further decrease in the country’s pet coke import volumes with consumers increasingly switching to thermal coal.

 

India: IndianOil revises pet coke prices across refineries

Indian Oil Corporation Ltd. (IOC), the country’s second-largest petroleum (pet) coke producer, has sharply increased prices of low sulphur RPC (Raw Petroleum Coke), for various refineries w.e.f. 18 Jun’21.

The list price of different grades of RPC from various refineries of IOC is enumerated as follows:

Refinery Premium Grade (INR/t) Grade A (INR/t) Grade B (INR/t)
Barauni 31,260 30,760 30,260
Bongaigaon 33,000 32,500 32,000
Guwahati 32,600 32,100 31,600
Digboi 31,050 30,550 30,050
Koyali 30,640 30,140 29,640

There is a quality differential of INR 500/t with each grade. Although all grades are not available at all refineries, price for all grades of RPC have been given for proper comparison purpose.

The above-mentioned price list is compared with IOC’s previous prices for the premium grade at these refineries as below.

Refinery Current Price (INR/t) Previous Price (INR/t) Price Change (INR/t)
Barauni 31,260 28,020 3,240
Bongaigaon 33,000 29,520 3,480
Guwahati 32,600 27,860 4,740
Digboi 31,050 26,310 4,740
Koyali 30,640 26,400 4,240

Price has been compared for Premium grade although it may not be available at all refineries for proper comparison purpose.

Notably, this is yet another all-time high price for RPC at all the refineries. This is mainly due to fact that the availability is very tight in the international market and prices are also very high. The price increases vary according to refinery. The maximum increase is at Guwahati and Digboi by INR 4,740/t. The lowest increase is at Barauni by INR 3,240/t.

RPC price is compared as a reference to RPC price at Barauni, considering it as nil. The changes in price differential in current revision as compared to last revision at these refineries are also shown in the table below.

Refinery Current Differential wrt Barauni (INR/t) Previous Differential wrt Barauni (INR/t) Change in differential (INR/t)
Barauni (Premium Grade) NA NA NA
Bongaigaon (Premium Grade) 1,740 1,500 240
Guwahati (Premium Grade) 1,340 -160 1,500
Digboi (Premium Grade) -210 -1,710 1,500
Koyali (Premium Grade) -620 -1,620 1,000