Petcoke

Indian companies are importing significant volumes of petroleum coke from Venezuela for the first time, trade sources and shipping data show, as the OPEC nation boosts exports

Analysts believe current input cost headwinds are transitory as likely price hikes by companies will help aid margin pressures.

The ban on use of petroleum coke (in select states) would not derail operations of ACC Cement, a top company official said here today."Pet coke has come across as a good fuel. The sulphur content in the fuel is neutralised with limestone by cement makers. But, it (pet coke ban) will not act as a derailer though it will increase the cost. All ACC plants have the flexibility to use alternative sources of fuel", said Neeraj Akhoury, managing director & chief executive officer at ACC Ltd, part of the LafargeHolcim Group.The Supreme Court has banned the use of key raw materials- pet coke and furnace oil in Uttar Pradesh, Rajasthan and Haryana. The court order aimed at mitigating pollution, is seen as impacting the earnings of cement companies.With 10 variants of cement products and Ready Mixed products in its portfolio, ACC Cement has 10 per cent market share by volumes in the domestic cement sector.ACC Cement is upbeat on the positive impact of the Goods & Service Tax (GST) on the

Although petcoke continues to remain the preferred fuel of cement companies despite the recent import duty hike, the uncertainties around it could impel a movement back towards coal.However, a substantial shift would need assured supply linkage from the near-monopolist home supplier, government-owned Coal India.Cement companies had traditionally relied on coal but had begun a shift to use of petcoke over the past 10 years, as it was cost-effective. "Petcoke usually has higher calorific value and makes more economic sense to end-users," says Deepak Kannan, managing editor of Asia Thermal Coal at S&P Global Platts, the energy sector tracking entity. The price of petcoke import on delivery at the east coast had surged in September, before losing gains and moving down. An analyst with ratings agency ICRA thinks a further 12-15 per cent increase in global petcoke prices will lead to cement makers shifting their production line towards coal. Thermal coal also attracts a six per cent ...