India: Petcoke output falls y-o-y in Mar'26, demand stays soft

• FY'26 output falls 1%, consumption down 10%
  
  
• Petcoke demand weakens amid high prices
  
  

Indian petcoke production and consumption declined y-o-y in March 2026, though there was a slight m-o-m improvement. Production stood at 1.28 mnt, down 10% y-o-y but up 5% m-o-m due to higher operational days. Cumulatively, in FY'26, output reached 14.77 mnt, down 1.3% y-o-y.

Production trends and supply dynamics

Petcoke output is driven by refinery product mix rather than direct demand, as it is a by-product of delayed coking units. Higher m-o-m production in March was mainly due to more days compared to February. However, the y-o-y decline reflects refinery focus on higher-value fuels such as diesel and petrol.

Overall supply remained tight. Domestic production met around 74% of demand in March, with a similar trend on a cumulative basis. As such, imports continued to bridge the supply gap. Petcoke continues to form a small share of total petroleum output, limiting the scope for major supply growth.

Consumption trends and demand outlook

Consumption stood at 1.73 mnt in March, down 8.3% y-o-y but upslightly m-o-m. Cumulative demand fell 10% y-o-y to 19.84 mnt in FY'26, showing continued weakness.

The cement sector remains the key driver, but demand has been impacted by high petcoke prices. Many players have shifted towards coal due to better cost economics, reducing petcoke usage. Global uncertainties and price volatility have also weighed on demand.

Going ahead, demand may stay cautious. Infrastructure activity will offer some support, but consumption will depend largely on price trends and competition from coal. Import dependence is expected to continue, as domestic output remains insufficient.