UltraTech Cement: Petroleum coke prices to stabilise by the end of 2021
Cement

UltraTech Cement: Petroleum coke prices to stabilise by the end of 2021

Cement manufacturing company UltraTech Cement told the media that petroleum coke prices are expected to stabilise by the end of this financial year once refiners in US’s Texas ramp up operations.

The company said that the improvement of Covid-19 vaccinations in the US will allow more people to move around and support refiners to grow output.

US is a major source of coke imports for India. According to Argus’ assessments, the delivered India prices of US 6.5% sulphur coke have more than doubled since the end of May to a near-record high of $128 per tonne.

The increase was driven by a combined effect of higher free onboard prices (fob) and firm freight for Supramax vessels on the US Gulf-India route. Like its colleague, UltraTech too has decreased its use of coke and increased coal consumption in the fuel mix to control prices.

Following the Covid-19 outbreak, a decline in refinery runs has weighed on coke output in chief source markets like the US and Saudi Arabia since mid-2020. The decline in domestic coke output was also partly caused by refiners' shift from sour to sweet crude.

India is the world's second major cement producer and is also the largest market for seaborne coke. However, fast availability and costlier costs of coke forced cement companies to temporarily replace coke with coal as a fuel.

Ultratech said that sales in the April-June quarter may be affected by the second wave of Covid-19 and provincial lockdowns in India.

Still, the company believes that the situation will recover in June and demand will return. Many major infrastructure projects are still operating in India, although the availability of workers has dropped to just 60%.

India's Covid-19 crisis could link with a slowing economy and increased government finances to weaken the cement industry's estimates of high double-digit sales growth this year.

Image Source


Also read: Will cement demand grow post-pandemic?

Also read: Ultratech Cement

Cement manufacturing company UltraTech Cement told the media that petroleum coke prices are expected to stabilise by the end of this financial year once refiners in US’s Texas ramp up operations. The company said that the improvement of Covid-19 vaccinations in the US will allow more people to move around and support refiners to grow output. US is a major source of coke imports for India. According to Argus’ assessments, the delivered India prices of US 6.5% sulphur coke have more than doubled since the end of May to a near-record high of $128 per tonne. The increase was driven by a combined effect of higher free onboard prices (fob) and firm freight for Supramax vessels on the US Gulf-India route. Like its colleague, UltraTech too has decreased its use of coke and increased coal consumption in the fuel mix to control prices. Following the Covid-19 outbreak, a decline in refinery runs has weighed on coke output in chief source markets like the US and Saudi Arabia since mid-2020. The decline in domestic coke output was also partly caused by refiners' shift from sour to sweet crude. India is the world's second major cement producer and is also the largest market for seaborne coke. However, fast availability and costlier costs of coke forced cement companies to temporarily replace coke with coal as a fuel. Ultratech said that sales in the April-June quarter may be affected by the second wave of Covid-19 and provincial lockdowns in India. Still, the company believes that the situation will recover in June and demand will return. Many major infrastructure projects are still operating in India, although the availability of workers has dropped to just 60%. India's Covid-19 crisis could link with a slowing economy and increased government finances to weaken the cement industry's estimates of high double-digit sales growth this year. Image Source Also read: Will cement demand grow post-pandemic? Also read: Ultratech Cement

Next Story
Infrastructure Transport

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Next Story
Infrastructure Urban

Blue Dart Unveils 10-Minute Digital Account Opening

Blue Dart Express has introduced its new Digital Account Opening (DAO) platform, enabling businesses across India to open shipping accounts and begin operations within just 10 minutes. The platform features a five-step digital onboarding process, allowing companies to register, complete KYC verification, sign agreements, and recharge prepaid cards quickly and securely. Through the DAO Journey, users can create a profile, select a suitable plan, complete Aadhaar-enabled digital signing, and immediately start shipping with a Digital Prepaid Card. All account activities are tracked in real time..

Next Story
Infrastructure Urban

Jharkhand Forms Teams to Modernise Urban Infrastructure

The Jharkhand Urban Development Department has constituted multiple expert teams to plan, assess, and modernise urban infrastructure across the state’s cities and towns, an official said on Thursday. The initiative aligns with Chief Minister Hemant Soren’s vision to position Jharkhand among India’s leading states in the field of advanced and sustainable urban development. The teams have been tasked with identifying existing infrastructure gaps and proposing new projects to promote stable and long-term growth. According to Sunil Kumar, Principal Secretary of the Urban Development and Ho..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?