Petcoke use fell in Q4 FY21 amid rising fuel prices

02 Jun 2021 CW Team

Indian cement producers reduced the proportion of coal in their fuel mixes in the fourth quarter of 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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Also read: Cement demand to grow 4-7% in FY22: CARE

Also read: Cement demand may surpass 340 mt in FY22: ICRA

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