MUMBAI (ChemAnlayst)-The prices of Petroleum Coke in India rose 21% in April on a month-on-month basis which was one of the major factors behind increasing cost of cement in the Indian market. In the Indian market the cement industry in general increased the costs by Rs 20-50 per bag to handle the high upstream costs. The Indian cement industry has found itself in a unique situation, where most of the companies have increased their production values by 8-10% which is greater than the pre-pandemic production rates. Despite the increased volumes of production rates, the companies have been running at 60-75% capacity leading to increase in cement’s price.

So, the increased production volumes have been rising the demand for Pet Coke, the hiked prices of pet coke and coal is being passed to end users since margins for the cement industry has not been up to anticipated levels due to cost inflation in the past six months. Despite weak market sentiments in the Metal productions like aluminum and steel dulling the petroleum coke demand in India. The disrupted trade of natural gas owing to the conflict in the East European region, restrained the cement production across Europe, which puts pressure on cement production in Asian countries especially India to meet Europe cement needs. This increased need for cement production abetted the rising trend of Petroleum coke prices in India.

According to ChemAnalyst, the prices of Petroleum coke are likely to remain stable as the demand from downstream construction industry is likely to reduce on the account of surging construction material costs and expected ease in upstream natural gas distribution globally on the hope of easing of the ongoing war between Russia and Ukraine. Since cement industries stock up their inventories for two months the easing of upstream natural gas prices may take time to be reflect in the Petroleum coke prices in India.