US petcoke export prices to rise on Indian demand
By: CW Group
Despite a forecasted slight pricing decline in late 2019, demand for US petcoke is expected to grow in 2020. India, the largest export destination for US petroleum coke, is set to drive demand as domestic gasification projects are projected to absorb close to half of India's own petroleum coke output, creating strong market opportunities for US refiners. Additionally, the cement and steel industries in India are pushing for the removal of the import duty currently applied on petcoke in a bid to increase cost competitiveness as economic growth in the country has eased.
"As coal prices face downward pressure due to a slowdown in global economic activity, as also demonstrated by a record low BDI index in January, petcoke manufacturers are constrained on the quantum of price appreciation that they can demand from buyers, says Carolina Pereira, Research and Advisory Manager at CW Group.
The market dynamics of petroleum coke pricing are somewhat more complex with its relationship to coal prices as well as the impact of freight charges on final product pricing. Even though demand for US petcoke is likely to increase, the combination of slumping coal prices and record low shipping rates is putting a major crimp on pricing initiatives of US petcoke manufacturers. This scenario is further complicated with the impact of environmental legislation around the world slowly but surely curtaining the use of high-sulfur petcoke, one of the major products of US manufacturers.
The outlook is grounded on CW Group's proven market research capabilities, which have assisted countless clients across multiple industries, from heavy-side building materials to traditional and renewable power & energy, food packaging, petrochemicals, metals & mining, industrial minerals, industrial manufacturing, bulk cargo & shipping, among others.
A leader in syndicated and customized market research solutions, CW Group works closely with credible market sources, including producers, consumers, intermediaries and other market participants to ensure the delivery of trustworthy and feasible data.
Based on its research, CW Group provides high-quality and up-to-date syndicated market and industry reports, commodity price assessments, market and competitive intelligence, sourcing and trade intelligence for all those interested in new markets, investment opportunities, individual companies, the competitive environment, global customers, and other areas. In addition, CW Group conducts special studies at the clients' requests, performing in-depth analysis of particular markets or market segments.
For more information, please contact Mihnea Manea, Media and Market Services Executive:
+40 723 281 704
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.
+40 723 281 704