【Petroleum Coke】Market Update: Slight Price Fluctuations and Future Outlook

Market Overview

As of February 17, the average price of petroleum coke in the market is 3,325 yuan/ton, a decrease of 6 yuan from the previous working day, representing a drop of 0.18%. Today, the petroleum coke market is relatively stable with mixed price performance. Major refineries have maintained stable pricing, with no pressure on sales. However, local refineries have seen a slowdown in downstream purchases due to previous price increases, leading some to lower their prices to alleviate pressure.

Main Regional Market Transaction Prices

• Refineries under Sinopec are selling at stable prices, with downstream buyers purchasing based on demand. Some anode material companies have increased inquiries and purchases for anode coke, and sales of anode coke are active in the Yangtze River region. In East China, the supply of medium to high sulfur coke has decreased, resulting in good sales. In North China, Yanshan Petrochemical focuses on 4B sales, while the Shijiazhuang refinery primarily sells 4A, and the Cangzhou refinery mainly sells 3#B and 4#A.

• Refineries under PetroChina are performing decently in terms of sales, with low sulfur coke inventories generally at low levels in Northeast China, providing some support on the supply side. Refineries in Northwest China mainly supply carbon products for aluminum use.

• Refineries under CNOOC primarily dispatch based on orders.

• Local refineries are experiencing average trading conditions, with most prices declining. Due to the rapid price increase of petroleum coke earlier, downstream cost pressures have become evident, leading some companies to incur losses. Consequently, there is an increased wait-and-see attitude towards petroleum coke, with purchases made only as needed, putting pressure on refinery sales. Prices for petroleum coke have generally decreased by 80-400 yuan/ton, while some low-priced petroleum coke has increased by 25-200 yuan/ton. Today, Tianhong Chemical's petroleum coke has a sulfur content of 2.8% and a vanadium content of 347 PPM, with a latest auction starting price of 2,100 yuan/ton.

• Regarding imported coke, the shipping speed at ports is stable, with traders executing orders effectively. As domestic local refinery prices decline, new orders for imported medium to high sulfur sponge coke have decreased.

Supply Side

As of February 17, there are currently 21 coking facilities undergoing maintenance nationwide, with a daily production of petroleum coke at 84,825 tons and a coking operating rate of 66.19%, which is an increase of 0.13% from the previous working day.

Demand Side

Downstream carbon products for aluminum are facing significant cost pressures, leading to a cautious approach in purchasing petroleum coke. The anode material market is currently stable, but overall downstream demand remains limited, with new orders not meeting expectations; thus, purchasing of petroleum coke remains steady. The high costs of graphite electrodes, combined with limited downstream market demand, have resulted in weak and stable procurement of raw material petroleum coke. The silicon carbide industry and the southern fuel market still have demand for high sulfur pellet coke.

Future Outlook

The supply side of the petroleum coke market continues to have favorable conditions, which still supports prices. However, due to the rapid price increases in the past, downstream companies are experiencing significant cost pressures, with some already facing losses. Therefore, it is expected that major refineries will maintain stable pricing today, with some prices experiencing slight increases. Local refinery petroleum coke may still face downward risks, with a potential decline of 10-50 yuan/ton.

(Source: Baiinfo)

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