India's pet coke production, consumption drop in Feb'25 but remain strong y-o-y

Pet coke production

India's domestic pet coke production in February 2025 stood at 1.19 million metric tonnes (mnt), marking a decline of 9.5% from 1.32 mnt m-o-m in January. The drop in production is largely attributed to fewer days in February compared to January, reducing operational output. However, compared to the same month last year, production remained relatively stable, witnessing a marginal dip of 0.7% from 1.20 mnt in February 2024.

• April-February cumulative production: 13.65 mnt (FY 2024-25) vs. 13.70 mnt (FY 2023-24), showing a slight decrease of 0.4%.
  
  
• Fiscal year comparison: FY 2023-24 production stood at 15.05 mnt, down 2.2% from 15.39 mnt in FY 2022-23.
  
  
• Production share: Pet coke constituted 5.29% of India's total petroleum product output (22.48 mnt) in February and 5.27% of total cumulative petroleum production (259.04 mnt) during April-February 2024-25.
  
  
• Refinery production trends: Since pet coke is a refinery byproduct, its production is influenced by refinery product-mix strategies, focusing on high-value petroleum products such as diesel, petrol, aviation turbine fuel (ATF), and gas.
  
  

Pet coke consumption

India's pet coke consumption in February stood at 1.84 mnt, declining by 3% from 1.90 mnt in January. This decline, similar to production trends, was primarily due to the shorter month of February. Despite the monthly decline, consumption saw a significant y-o-y increase of 17.9% from 1.56 mnt in February 2024.

• April-February cumulative consumption: 20.12 mnt in FY 2024-25, up 15.08% from 17.48 mnt in FY 2023-24.
  
  
• Yearly trend: FY 2023-24 consumption stood at 19.11 mnt, marking a 7% increase from 17.87 mnt in FY 2022-23.
  
  
• Import dependency: Domestic production of pet coke in February met approximately 71.2% of total consumption, with the shortfall covered by imports.
  
  
• Industry demand: The cement industry, a major consumer of pet coke, has driven demand post-monsoon (from November 2024 onward). Consumption is expected to remain strong until June before monsoon disruptions occur.
  
  

Outlook

The import of pet coke is regulated by the Director General of Foreign Trade (DGFT), with only specific industries, including cement, lime kiln, calcium carbide, and gasification sectors, permitted to import.

• Revised import allocations: From FY 2024-25, the import quota for raw petroleum coke (RPC) for calciners increased from 1.4 mnt to 1.9 mnt, signalling a potential rise in pet coke consumption.
  
  
• Cement sector's role: Cement industries continue to import pet coke without quantity restrictions, ensuring sustained demand.
  
  
• Infrastructure-led growth: As infrastructure projects continue to expand post-monsoon, pet coke consumption is expected to remain firm in the coming months.
  
  

Conclusion

While February saw a dip in both production and consumption compared to January due to fewer operational days, y-o-y trends indicate growing demand. With infrastructure development and cement industry consumption driving pet coke usage, demand is expected to remain robust until the monsoon sets in mid-2025. Additionally, increased import allocations for specific industries will further support higher consumption in the coming fiscal year.