Feb.6--Indian end-users showed buying interest for imported fuel-grade petcoke amid falling dry bulk freight rates, which had made landed cost economically viable, sources said this week.
A west India-based trading source said there were some inquiries for US petcoke from Indian cement makers and he was also in discussions to close some deals. He said offers for Panamax vessels of US petcoke with 6.5% sulfur were hovering at around $77-78/mt CFR India.
“Current prices are lucrative and several cement companies may consider buying imported petcoke,” he added.
An east India-based trading source also said there was ample interest for imported petcoke among Indian end-users and he had also received an inquiry from an Indian company.
Petcoke demand was poised to go up if end-users could get US petcoke with 6-7% sulfur at sub-$75/mt CFR levels, he added.
“Imported petcoke is very likely to replace Richards Bay 6,000 kcal/kg NAR thermal coal,” he said.
Several cement companies are already consuming imported petcoke and gradually other industries like power generators might also start using it as newer boilers are designed to burn fuel of various grades, the east India source said.
OFFERS WEAKENING
A south India-based trading source said offers for US petcoke with less than 7% sulfur were at around $78-79/mt CFR Panamax vessels but buyers were looking at low $70s/mt CFR.
He said many end-users in India dealt directly with US refineries or suppliers.
Another source from the west of the country said petcoke prices were softening mainly due to oversupply and offer prices had fallen from low $80s/mt CFR a week ago to high $70s/mt CFR this week on Panamax vessels.
“Even though coal prices have fallen significantly, buyers still calculate the cost per CV and they find petcoke makes more economical sense,” he said.
This source said that his company was covered until March and might float an inquiry for an April shipment of US petcoke with 6-7% sulfur.
Another end-user source from north India said that although current price levels were attractive, his company was also covered until March.
He pegged the price of US petcoke with 6.5% sulfur on a Panamax vessel at around $74-75/mt CFR.
Panamax freight rates from the US Gulf to India were hovering at around $22-23/mt, he said.
Meanwhile, sources said petcoke from the Middle East with over 8% sulfur might entice Indian buyers if they were able to get significant discounts.
“There should be a discount of around $8-10/mt vis-a-vis US petcoke,” the north India-based end-user source said, referring to Middle East material.
(Source: Platts)