NGT ruling on petcoke usage to boost Indian petcoke prices

GREENWICH, Conn. - Aug. 17, 2017 - PRLog -- Greenwich (CT), USA,August 17, 2017 – High-sulfur CFR petcoke prices in India West Coast are expected to rise at an average 2.5 percent from August until November 2017. According to CW Research (http://www.cwgrp.com/research)'s India Petcoke CFR Price Assessment (http://www.cwgrp.com/index.php/research/research-products/price-assessments/product/51-price-assessment-india-petcoke-cfr), this surge in pricing is largely due to the outcome of the NGT (National Green Tribunal) ruling on petcoke usage.

The NGT deliberated favorably to allow the burning of petcoke by the cement and power industries. Nevertheless, companies operating in those segments will still have to install new equipment to reduce their emissions. After all, environmental concerns are what triggered the initial objection against uncalcined petcoke in the first place, with opposing voices claiming it was damaging the environment and people's health.

As corroborated by Filipe Gouveia, analyst with CW Research: "the outcome of the NGT ruling on petcoke usage was favorable for producers in India and exporting countries. The power and cement industries account for approximately 85 percent of total fuel grade petcoke demand in the country, and these segments will be allowed to use petcoke for fuel, albeit under stricter regulation regarding CO2 emissions."

Petcoke demand driven by gasification project

With a domestic market no longer clouded by regulatory constraints, companies are now looking to restock their petcoke inventories, thus driving demand upwards in India. Future high prices for coal, along with increasing freight rates for dry bulk shipping, are also expected to accentuate the upsurge in average CFR pricing. The combination of these factors is set to cancel out the unfavorable effects the monsoon season usually exerts on petcoke demand. The harsh meteorological conditions pose a problem to transportation logistics, resulting in a seasonal lower demand for the byproduct.

In the last quarter of the year, petcoke prices are expected to remain high, as major domestic producer Reliance prepares to initiate their gasification project, in December. The company is expected to stock up on petcoke, reducing the availability of the byproduct in the domestic market.

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For more information, placing an order, or interview inquiries, please contact Liviu Dinu, Market Services & Marketing Consultant, CW Group, by phone at +40-744-67-44-11, or e-mail at ld@cwgrp.com.

About the Report

India Petcoke CFR Price Assessment, available at PetcokeWeek (http://www.cwgrp.com/petcokeweek), is part of CW Research's price assessment series for tradable commodities. The reports offer prompt cargo (next 30-60 day deliveries) pricing insights, regular monitoring of the market and an overview of key developments that are crucial for those involved in the cement, clinker and petcoke trade to understand. The monthly price assessments synthesize key market information based on CW Research analysts' ongoing interactions with market participants, including traders, exporters, buyers and other stakeholders involved in the cement, clinker and petcoke trade.


About CW Group

The Greenwich (Conn.), USA headquartered CW Group is a leading advisory, research and business intelligence boutique with a global presence and a multi-industry orientation. CW Group is particularly recognized for its sector expertise in heavy-side building materials (cement), light-side building materials, traditional and renewable power & energy, petrochemicals, metals & mining, industrial minerals, industrial manufacturing, bulk cargo & shipping, among others.