How a New Cement plant by Adani will drive the Indian Petroleum Coke market in future
- 09-Mar-2023 2:01 PM
- Journalist: Jai Sen
Karan Adani, the chief executive officer of the group's port company Adani Ports and SEZ Ltd and the son of group founder and chairman Gautam Adani, stated that the group will construct a 400 MW data center in Visakhapatnam and cement plants with a total capacity of 10 million tonnes per annum in the state of Kadappa and Nadikudi (Andhra Pradesh), At present, the group does not have any cement production plants in Andhra Pradesh (India).
These two facilities will increase the demand for Petroleum Coke in the Indian market as it is used as an energy source in the manufacturing of Cement.
The Indian construction sector has started witnessing a rise from past few weeks, as per the analysis, the market has noticed an increased demand from the downstream cement industry during the first week of March, which led to a 1.5% increase in the price of pet coke in India. The fluctuating prices of crude oil were another major factor that influenced pet coke prices in India during this period.
During this week, the price of pet coke increased by 1% in the United States and 0.6 percent in Europe. Meanwhile, the price of feedstock crude oil increased by 1.3 percent and 1.2 percent, respectively, and supported the product's price trend.
The demand from downstream industries like cement, paints, coatings, and colorants has driven up the price of Pet Coke on the global market in recent days. Additionally, the most significant factor that influenced the product price trend on the global market was the rise in the cost of energy like crude oil.
According to ChemAnalyst, the price of Petroleum Coke may rise in the first half of March as the global market may witness an increase in the price of feedstock crude oil in the global market. Further, in Asia and the Middle East, demand for Pet Coke from the downstream cement manufacturers may rise under the influence of seasonal demand, which may strengthen the price of Pet Coke in the Asian and Middle East markets.