The rise in global petcoke prices does not seem to be slowing down, with a CFR East Coast India deal heard this week for April loading at $119/mt.
While sources continue to say supply remains tight, many are hard pressed to believe deals are getting done at these levels.
“Supply is still tight, and I still don’t think there is much available, but what is going on?” said a European trader.
A West India-based trader said prices are seeing support owing to limited availability while a number of US refineries are carrying out maintenance.
There is hardly any Indian interest now given the high prices, added the Indian trader.
He said the indicative bid for US petcoke is around $110-$115/mt on a CFR basis while the offer was at $120/mt CFR India. The Indian trader said the market is sluggish due to the strength of prices, even though it is peak buying season for India and there is hardly any imported petcoke ground stock left.
Even domestic petcoke producers are not actively making any offers as they are busy closing their books for the financial year, the source said.
The trader said tight supply as well as demand from other regions, such as Turkey and Latin America, are keeping prices afloat.
A South India-based trader said he heard an offer for US petcoke as high as $130/mt CFR India.
“I don’t think anyone will be willing to buy at these levels,” he said, adding that there are hardly any offers for petcoke and with coal getting cheaper, Indian demand would continue to wane.
In addition, higher freight rates have been adding to the pressure on the landed cost.
According to the West Indian trader, a correction in prices is inevitable by April because nobody in India will be buying petcoke at the existing levels.
Meanwhile, softness in coal prices will also weigh on petcoke, said the West Indian trader.
S&P Global Platts on Wednesday assessed 5,500 kcal/kg NAR coal delivered into West India at $87.80/mt CFR, down 9% from its year-to-date high of $96.15/mt on February 23 but up 21.6% from the year-ago level of $72.95/mt.
In Turkey, petcoke demand continues to be weak as buyers wait for prices to follow coal lower.
On a calorific value-adjusted basis, petcoke has become more expensive to burn than coal as the two fuels have been trending in opposite directions, sources said.
Houston (Platts)–21 Mar 2018 939 pm EDT/139 GMT
–Andrew Moore, Jeff McDonald, Arusha Das
–Edited by Keiron Greenhalgh
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