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C.R. Sukumar

Hyderabad , Aug. 27

AIMED at cashing in on several brownfield aluminium smelter expansions taking place across Africa, West Asia, Europe and India in the next couple of years, Rain Calcining Ltd (RCL), the Rs 333.22-crore producer of calcined petroleum coke and power, has chalked out a programme to enhance its capacity for production of calcined petroleum coke.

In a communiqué to shareholders, the RCL management said the main driving force for calcined coke demand would continue to be the aluminium industry, the primary end user of calcined coke that accounts for 75 per cent of overall consumption. The balance 25 per cent was consumed by the titanium dioxide, graphite and other metallurgical industries.

Stating that the fundamentals of calcined coke pricing were based on the fortunes of the aluminium industry, RCL informed the shareholders that in the West, calcining demand increased from 9.06 million tonnes in 1997 to 9.5 million tonnes during 2000.

Though the demand decreased during 2001 owing to closing of several aluminium smelters in the US Pacific Northwest for unfavourable power pricing structures, the demand for calcined coke improved during last year and reached the levels of 2000.

During the current year, the demand for calcined coke was estimated to increase by 4 per cent with improving worldwide economic fundamentals. The demand was further expected to increase by 4-5 per cent during the next couple of years.

"This strong upsurge in demand anticipated over the next two years is based on several brownfield aluminium smelter expansions coming online in Africa, West Asia, India and Europe. It is expected that by 2005, approximately 3 lakh tonnes of additional calcined petroleum coke would be required," the RCL management said.

According to the company, another Calciner would be required to meet the growing demand for calcined coke from the world aluminium industry. It was widely expected that once the 4-lakh-tonne Astral Calciner was built in Rotterdam, it would cater to some of the demand. However, according to the RCL management, the Astral Calciner project appears to be stalled since major construction activities were yet to commence. As a result, the outcome of the project would be known only later this year. Similarly, the 4-lakh-tonne Alba Calciner in Bahrain was currently running at only around 50 per cent capacity and has been catering mostly to its own internal requirements.

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