Petcoke use fell in Q4 FY21 amid rising fuel prices
According to the media, Ramco Cement company's petcoke use was 41% in the FY2021 compared to FY20 when it was 48%. Dalmia Bharat subsidiary Dalmia Cement has used 52% petcoke into its cement fuel in the fourth quarter of FY21, ended on March 31 as compared to 70% in the third quarter of 2021.
In a similar comparison period, Aditya Birla subsidiary UltraTech Cement reduced its petcoke use from 77% to 30%. The company replaced the fuel with 60% coal, compared to 10% in the third quarter of FY21.
The prices of petcoke are more than double year-on-year to $130 per tonne in the fourth quarter of FY21. The leading cement producers are to switch fuels. The prices of coal have consequently risen by 82% to $100 per tonne. The cement producers depend on the import of both the goods.
As we have reported earlier, cement production fell by 5.5% during February 2021 compared with a 5.8% decline witnessed during January 2020 and a 7.8% increase during February 2020. Slow pick-up in infrastructure projects and waning pent-up demand can be ascribed to a drop in production during the month. Usually, cement production is high during Q4 as construction activities are at its peak.
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