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India's pet coke consumption rises 6%, production up by 8% in July'24

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Pet Coke

BigMint Bureau

159 Reads

2 Sep 2024, 18:36 IST

India's pet coke consumption rises 6%, production up by 8% in July'24

India's petroleum coke consumption increased by 6% m-o-m in July 2024 to 1.72 million tonnes (mnt) as compared to 1.62 mnt in June this year. On a yearly basis, consumption rose by 4% as compared to 1.66 mnt in July, 2023.

Imports are regulated by the Director General of Foreign Trade (DGFT), and only certain qualified industries, such as cement, lime kiln, calcium carbide, and gasification are permitted to import petroleum coke. The import quantity of Raw Petroleum Coke (RPC) for calciners has increased from 1.4 mnt to 1.9 mnt. The DGFT controls the import of all grades of petroleum coke and sets limits on the overall import quantity of RPC. However, the cement industry, which accounts for the majority of imports, is not subject to any specific quantity restrictions, unlike the import of RPC for the production of Calcined Petroleum Coke (CPC) or the import of CPC by the aluminium industry.

Pet coke production up m-o-m in Jul'24

The country's petroleum coke production in July 2024 was reported at 1.30 mnt, up 8% on a monthly basis compared to 1.20 mnt in June this year. On a yearly basis, production dropped by 3% as compared to 1.33 mnt in July 2023. The demand for pet coke is closely tied to infrastructure activities, with cement being a major component. Since the cement industry is the primary consumer of pet coke, demand is expected to remain subdued during the monsoon across the country.

RIL rolls over pet coke prices for Sep'24

Reliance Industries Limited (RIL) has released pet coke prices for September 2024, which are recorded at INR 12,663/tonne (t), remaining stable m-o-m. However, the current price is approximately 12% lower compared to the same month last year. RIL releases only a limited quantity of pet coke into the market, as a significant portion is utilised in their gasification unit.

Outlook

Infrastructure activities across the country have been impacted by the monsoon, affecting cement consumption, which is a key component. Since cement industries are the major consumers of pet coke, the overall demand for pet coke is expected to remain subdued during the monsoon period and gradually pick up from October 2024 onwards.