India: US-origin pet coke prices decline amid weak buying interest

• Cheaper coal limits pet coke demand
  
  
• Monsoon concerns weaken market sentiment
  
  

US-origin imported pet coke prices in India declined w-o-w amid subdued buying activity and growing preference for cheaper fuel alternatives. As per market assessments, Pet Coke CNF Vizag India 0-50 mm 6.5% Sulphur US declined by around $3/t w-o-w to nearly $152/t on the east coast, while Pet Coke CNF Kandla India 0-50 mm 6.5% Sulphur US dropped by $3.5/t to around $146.6/t on the west coast.

Reasons behind the decline

Demand for imported pet coke remained weak as consumers increasingly shifted towards cheaper alternatives such as US thermal coal, Russian coal, and domestic coal. Availability of Indian coal without premium further reduced buying interest for imported fuel.

As per BigMints assessment, Non-Coking CNF Kandla India 0-50 mm 6000 NAR US thermal coal was assessed at around $125/t, making it a significantly cheaper alternative compared with imported pet coke.

Market participants also reported lower-priced Middle Eastern cargoes, with a confirmed Oman-origin tender heard around $140-143/t and an unconfirmed Saudi-origin deal near $140/t. US-origin offers were also heard softening towards $145/t levels.

Weak cement market sentiment additionally pressured demand, with procurement remaining largely need-based. Participants noted that ample coal availability and expectations of slower industrial activity during the upcoming monsoon season may further weigh on consumption.

Outlook

Market participants anticipate further correction in imported pet coke prices in the coming weeks due to weak demand, comfortable coal availability, and the approaching monsoon season. Unless cement demand improves significantly, buyers are expected to continue delaying purchases in anticipation of lower prices.