High demand boosting petcoke production in India and China; Brazil still slipping

According to CW Research's ÔÇ£Petcoke Country Market DataÔÇØ, during December 2017, petcoke production rose in India and Brazil. In China, despite environmental measures to curb pollution, production levels for the commodity remained high.

As noted by Filipe Gouveia, analyst with CW Research: ÔÇ£2017 was challenging for petcoke producers and traders, as the largest importing market for the fuel, India, was hampered with strong opposition from the National Green Tribunal. While a nationwide petcoke ban seems unlikely, bans and import taxes across some states are causing price increases in the cement industry, and aggravating uncertainty for petcoke traders and producers.ÔÇØ

Chinese and Indian petcoke output on the rise; slow cement sector drags down Brazil

In China, a high demand for petcoke is keeping the fuel prices strong. In December, petcoke production fell 4.1 percent on a yearly basis, reflecting a lower industrial output from smog combat measures. Nevertheless, in 2017, petcoke production in the country witnessed an upsurge of 6.3 percent, when compared to the previous year.

Meanwhile, Indian petcoke production in 2017 rose 13.6 percent when compared to the previous year, driven by higher domestic demand. Throughout December, green petcoke production improved 30.1 percent on a yearly basis, reflecting a faster production pace in the second half of the year.

In Brazil, a recovery was recorded in November and December, with green petcoke output rising 10.9 and 16.8 percent, respectively. Despite this improvement, petcoke production fell just under 11 million tons in 2017, reflecting a poorly-performing cement industry, and a slow macroeconomic environment.

 

Find out more here