As Pet coke is being used by many companies as a cheaper option to coal, so its imports of the country are rising. To reduce the coal imports as much as possible, the Coal Ministry is trying.
To using imported pet coke Industries that consume coal have moved on that add up to country’s import bills. In last fiscal there has been a 39.8% rise in import of coke, reported by a Data with Petroleum Planning and Analysis Cell (PPAC) and in import bill of petroleum products, pet coke has the largest chunk.
During March 2017“Import of Petroleum, Oil, and Lubricants (POL) products increased by 17.0 percent as compared to March 2016 and this is mainly due to increase in import of LPG. During April 2016 to March 2017 Import of POL products increased by 21.7 percent as compared to the same period of the previous year (2015¬-16) and also as per PPAC imports of liquefied petroleum gas (LPG) and pet coke accounting for 95.0 percent of total increase of 6.4 million metric tonnes (MMT),”
The cost economics like land value involved in coal make pet coke an attractive option for many sectors like cement as the Pet coke has more calorific value. in March 2016, the pet coke prices on delivering to India had fallen to $39.50/tone, shows by a Data from S&P Global Platts which has been a record low and in comparison. Along with cost and freight India, the thermal coal prices were higher at $47¬-$48/tone.
In rising use of Pet Coke Price is the deciding factor in India and in the same manner, it is expected to continue unless thermal coal price falls. Based on prices movement by staying flexible in their procurement the end consumers so far have been playing it safe.
Although the total imports are still less than coal imports of the country, Pet coke imports are increasing. During April-December 2016 as per data from PIB, the total coal import of India was 144.87 million tonne. In 2016-¬2017 The pet coke import was at 14 million tones.
Presently the pet coke prices are showing a rising trend so the importers are waiting. in East, India$95-¬$96/mt CFR India is the current price of pet coke which is selling at about $73.90/mt CFR, as per Global Platts data. Due to freight rate changes the pet coke prices may also change. Due to falling local production of pet coke, the imports also can increase.