Global petcoke market under pressure as Indian cement producers switch to cheaper thermal coal

• India's petcoke imports fall 44% in Q1 2026
  
  
• CFR India 6.5% petcoke at $156/t, down $4/t in April
  
  

The global petroleum coke market is showing clear signs of strain, with Indian cement makers - the world's largest buyers of seaborne petcoke - increasingly turning to cheaper thermal coal. Prices across major grades have softened, and the outlook remains bearish as buyers hold out for further declines.

CFR India 6.5% sulphur petcoke eased to $156/t by the end of April, down from $160/t at the beginning of the month. Market feedback from major cement producers indicates a clear downward trend.

A major cement producer on 1 May indicated price levels of $155/t, adding: "One cargo sold at $143/t, origin maybe Oman or Saudi." Another producer noted they had three shipments scheduled and were covered, sourcing the rest domestically, adding that they had heard of some deals at $140/t CFR though origin was unconfirmed.

By late April, a cement producer had already flagged that market indications were at levels up to $150/t, noting that alternatives including US thermal, Russian thermal and domestic coal were available. Another anticipated buying levels to touch $145/t, hearing US thermal around $135/t, adding that one cement producer had booked a Panamax US thermal cargo at that level.

 

US prices reverse after 13-week rally

The US petroleum coke market reversed course in the week ended 29 April, with four of five assessments declining. FOB US Gulf Coast 4.5% sulphur petcoke posted the week's biggest decline, sliding $10.20 to $112/t, ending a 13-session streak of increases. West Coast grades also fell, with FOB US West Coast 4.5% sulphur petcoke moving to $105/t, its first decline since 28 January.

A US trader summed up the sentiment: "The market's pretty slow right now. There's a lot of uncertainty, and nobody wants to take the dive with the high prices, unless they have to."

FOB US Gulf Coast 6.5% sulphur petcoke held steady at $107/t, supported by a producer-reported trade at that level for a May-loading cargo. However, activity in the Indian market remained limited, with several CFR offers and bids reported for May-loading cargoes. Offers ranged from $148-158/t, while bids came in between $141-150/t.

Freight rates from the US Gulf Coast to India's East Coast rose sharply after falling for a couple of weeks. Market participants noted that with freight rates still elevated, a reduction in FOB prices would be necessary to enhance petcoke's appeal to buyers.

Ultratech leads fuel switching

India's largest cement producer, Ultratech, significantly reduced the use of petroleum coke in its kiln fuel mix during January-March, switching to cheaper thermal coal to reduce energy costs. The share of coke in Ultratech's fuel mix dropped to 41% during the quarter, down from 54% in January-March 2025.

The company's coke use in fuel mix has declined year-on-year for three consecutive quarters, starting from July-September 2025. "We are actively managing our fuel mix, optimising coke, coal, alternative fuels and increasing the share of domestic coal wherever required and wherever possible," the company said in its earnings call.

Ultratech's fuel costs fell by 1% y-o-y to INR 874/t ($9.3/t) of cement in January-March. The company expects to see the impact of higher fuel costs in the July-September quarter but added that it will be able to manage the situation better than the industry because of term contracts and domestic coal sources.

Indian cement makers imported just 707,000 t of seaborne coke during January-March, down sharply from 2.47 million tonnes in the same period last year.

Meanwhile, India imported 2.75 mnt of US thermal coal, primarily high-CV NAR 6,900 kcal/kg Northern Appalachian (NAPP) coal, in the quarter ended 31 March, up 32% from a year earlier. Cement makers prefer NAPP coal as a replacement for coke when prices are competitive.

EMEA markets stable on low demand

Prices stabilised in Europe, Mediterranean and Africa-delivered petcoke markets in the week ended 29 April, as low demand from key importing nations offset the impact of high ocean freight costs.

A Turkiye-based trader noted that buyers were already in a wait-and-watch mode due to the availability of cheaper Russian coal, and fluctuating freight rates further weighed on sentiment. CIF Turkey 5.5% sulphur US-origin petcoke was assessed at $140/t, flat w-o-w.

Turkish cement plants continued to seek Russian coal, with Turkiye-delivered Russian 6,000 kcal/kg NAR coal available at $101-103/t for 50,000-75,000 tonne cargoes. A Turkey-based cement producer said Latin American countries, along with the European market, were key drivers of export demand, and most cement utilities in Turkey were operating at substantially high capacity.

Holcim, Cemex mitigate petcoke risk

Swiss building materials producer Holcim reported further gains in displacing solid fuels in the first quarter. Its European plants average alternative fuel use reached 70%, with 14 plants operating at an 80-100% thermal substitution rate. The increase reflected greater use of waste-derived fuels and biomass across its kiln operations.

Holcim reiterated its target of achieving a 50% alternative fuel rate globally and up to 90% in Europe by 2030, indicating further displacement of coal and petroleum coke in the medium term.

Mexico-based Cemex said it has measures in place to mitigate the impact of rising petcoke prices. About 60% of Cemex's total energy spend in 2025 has been hedged for 2026, and the company maintains 2-3 months of fossil fuel inventories that "provide some protection" against sharp upswings in coke prices.

Outlook

The petcoke market faces continued pressure from multiple sides. Indian cement makers are actively switching to coal, and demand from China for fuel-grade coke remains subdued. Turkish buyers prefer Russian coal at competitive prices. European cement producers are accelerating alternative fuel adoption.

For the near term, CFR India petcoke prices are expected to remain under pressure. Key factors to watch include the trajectory of US thermal coal prices, the reopening of the Strait of Hormuz, the monsoon season in India, and the pace of fuel switching by major cement producers.