India: Falling imported petcoke prices challenge US thermal coal buying inquiries

• Cement buyers wait for further drop amid ample US coal stocks
  
  
• Monsoon cement sector slowdown weakens demand outlook
  
  

Imported US-origin petcoke offers into India softened significantly during the week ending 29 May 2026 as weak cement demand and growing competition from alternative fuels continued weighing on market sentiment.

Market participants indicated thatUS-origin 6.5% sulphur petcoke offerswere heard at around $137-142/t CFR Indian east cost, with freight assessed near $53/t. The $8-9/t w-o-w decline reflected increasing pressure on sellers to stimulate buying interest amid limited enquiries and subdued procurement activity.

Several participants noted that cement producers remained largely absent from the market as many had already secured US thermal coal cargoes earlier at comparatively attractive prices. As a result, fresh petcoke buying interest remained limited despite the recent correction.

Buyers wait for lower levels

Market participants stated that a large section of buyers continued waiting for further price declines before returning to the market. Many consumers were targeting petcoke prices closer to US coal replacement levels of around $130/t CFR India before considering fresh purchases.

The recent correction has narrowed the gap between imported petcoke and thermal coal, prompting cement producers to continuously reassess fuel economics. While petcoke offers higher calorific value, buyers remained highly price-sensitive and focused on achieving lower delivered fuel costs.

Traders reported that buying activity was largely opportunistic rather than driven by systematic replenishment. Bid levels remained below prevailing offers, resulting in limited trade conversions during the week.

US coal faces growing competition

The correction in petcoke prices has started challenging the strong position US Northern Appalachian (NAPP) coal had established in India's cement sector over recent months.

US NAPP coal continues to offer advantages such as stable combustion characteristics, lower sulphur content and operational flexibility. However, as petcoke prices move closer to coal levels, some cement producers are reassessing fuel blends to improve kiln efficiency and reduce fuel costs.

Market participants indicated that coal demand has not collapsed but procurement strategies are becoming increasingly selective. Instead of favouring one fuel outright, many cement plants are adjusting blending ratios depending on relative economics.

Meanwhile, domestic coal availability and regular auction supplies have further reduced urgency for imported fuel procurement.

Monsoon adds pressure on sellers

The approaching monsoon season continued adding pressure on the imported fuel market. Traditionally, cement demand slows during the rainy season, resulting in lower fuel consumption and reduced inventory requirements.

Participants stated that buyers were reluctant to commit to large cargo purchases ahead of the monsoon and preferred maintaining procurement flexibility. Sellers, on the other hand, faced increasing pressure to offer competitive pricing in order to attract demand.

The combination of weaker seasonal demand, comfortable fuel availability, and cautious buying sentiment kept overall market activity subdued.

Outlook

Imported petcoke prices may remain under pressure in the near term as buyers continue waiting for lower levels amid the monsoon-related demand slowdown. Competition from US coal and domestic coal is expected to remain strong, while sellers may need to further adjust offers to revive buying interest from India's cement sector.