India: Domestic petcoke prices remain mixed in May'26 amid weak demand

• Nayara hikes prices sharply
  
  
• IOC, BPCL keep prices stable
  
  

Domestic petcoke prices in India remained mixed in May 2026 as refiners adopted divergent pricing strategies amid weak downstream demand. While Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) kept prices unchanged after steep hikes in April, Nayara Energy and Chennai Petroleum Corporation Limited (CPCL) raised offers aggressively on supply concerns linked to refinery outages and geopolitical tensions in West Asia. However, softer cement demand and the availability of cheaper coal alternatives continued to limit buying interest, keeping market sentiment cautious.

IOC, BPCL keep prices stable

IOC, one of India's largest domestic petcoke suppliers, has rolled over prices for May 2026 across all major refineries. Road prices remained unchanged at INR 17,660/t at Koyali, INR 18,920/t at Panipat, INR 16,980/t at Paradip, and INR 17,150/t at Haldia. Rail prices remained INR 200/t lower than road prices, except at Panipat, where no rake loading facility is available.

BPCL also maintained stable pricing this month. Petcoke prices at Bina refinery remained at INR 19,000/t, while Kochi refinery prices stayed unchanged at INR 18,000/t. Market participants noted that both refiners preferred to hold prices steady after the sharp hikes implemented in April.

Nayara, CPCL continue aggressive hikes

Unlike IOC and BPCL, Nayara Energy raised petcoke prices sharply to INR 21,000/t in May. The increase stood at INR 1,330/t over the second revision made in April and INR 2,330/t higher compared with prices at the beginning of April.

CPCL also revised prices upward aggressively, increasing offers by INR 1,360/t to INR 19,750/t. Traders noted that CPCL pricing has largely moved in line with Nayara's revisions over recent months.

Mangalore Refinery and Petrochemicals Limited (MRPL) increased prices more moderately. Road prices increased by INR 300/t to INR 17,250/t, while rake prices rose to INR 15,320/t. The company also continued offering discounts for higher road lifting volumes, effectively reducing the gap between rake and road supplies.

Supply concerns support domestic market

Domestic petcoke prices remained supported mainly by supply-side concerns and geopolitical tensions. Market participants stated that the ongoing US-Iran conflict continued to increase marine insurance premiums and freight costs due to concerns surrounding vessel movement near the Strait of Hormuz.

Additionally, Nayara's planned refinery shutdown for around five weeks reduced domestic availability and supported firmer pricing sentiment in the market. Traders noted that supply tightness remained more visible in western and southern India, where buyers continued monitoring refinery dispatches closely.

At the same time, imported petcoke prices also remained elevated compared with historical levels, although sentiment weakened recently due to lower buying interest.

Cheaper coal limits petcoke demand

Despite higher refinery prices, demand for petcoke remained subdued across key consuming sectors. Cement producers increasingly shifted towards cheaper alternatives such as imported thermal coal, Russian coal, and domestic coal.

As per BigMint's assessment, US-origin 6,000 NAR thermal coal at Kandla was assessed at around $125/t, significantly lower than imported petcoke levels.

Imported US-origin petcoke prices also softened during the week, with CNF Vizag prices easing to around $152/t and Kandla to around $146.6/t. Market participants also heard Oman-origin cargo deals around $140-143/t, while unconfirmed Saudi-origin deals were discussed near $140/t. US-origin offers were heard softening towards $145/t amid weak enquiries.

Participants stated that cement demand remained weak, while procurement activity continued largely on a requirement basis. Comfortable coal availability and weak industrial activity further reduced urgency for fresh petcoke bookings.

Outlook

Market sentiment remains cautious going forward. Although refinery shutdowns and geopolitical tensions may continue supporting domestic petcoke prices, weak downstream demand and cheaper coal alternatives are expected to limit aggressive buying activity.

Traders also expect the approaching monsoon season to further slow industrial fuel consumption, particularly in the cement sector. As a result, buyers are likely to continue delaying purchases and maintaining limited inventories in anticipation of softer prices ahead.