Domestic pet coke prices softens further
News: Reliance pet coke prices (ex Jamnagar) have further declined by Rs 1409/t (MoM) to Rs 13230/t for June 2023 (down 34% YoY). The decline is in line with recent global pet coke prices (~135-140 US $/t).
Views: On an average, fuel cost per Kcal in Q4FY23 declined from Rs 2.5 to Rs2.3 Kcal (QoQ). We expect costs to further soften to Rs 1.9-2/Kcal in H2FY24. We expect cost tailwinds of Rs 200-250/t over the next two quarters (provided the spot prices sustain at the current level).