【Petroleum Coke】Market Divergence Intensifies, Price Negotiation Enters Critical Period

As of March 3, the average price of petroleum coke was 3,304 RMB/ton, down 32 RMB from the previous working day, a decrease of 0.96%. The petroleum coke market is currently showing mixed trends, with transactions becoming more divided. Some major refineries have seen a broad price decline in low-sulfur coke, while mid-high sulfur coke prices have remained stable. Downstream demand is slowing, and local refineries are still able to sell at lower prices, with some showing price increases, while high-end prices continue to fall. There are numerous tentative inquiries for graphite electrodes, though actual transactions remain low, with companies still operating at low levels, leading to weak but stable petroleum coke procurement.

Key Regional Market Prices

· Sinopec refineries are maintaining stable prices with downstream purchasing based on demand. In East China, mid-high sulfur coke prices are stable, while in South China, Guangzhou Petrochemical’s #3 C coke is the main product in circulation, and Beihai Refinery is moving #4 A coke. In Northwest China, Taha Petrochemical maintains stable prices.

· PetroChina refineries in Northeast China are mostly lowering prices, as downstream purchases of high-priced orders have slowed. This has led to price reductions at Daqing Petrochemical, Fushun Petrochemical, Jinzhou Petrochemical, and Jinxi Petrochemical by 390 RMB/ton, while Jilin Petrochemical decreased by 340 RMB/ton. In the Northwest, Yumen Refining and Lanzhou Petrochemical also lowered prices by 80 RMB/ton and 560 RMB/ton, respectively, with other refineries holding steady.

· CNOOC refineries are currently maintaining stable prices for orders.

· Local refineries are seeing mixed price trends. At the beginning of the month, downstream companies needed to restock, and with low petroleum coke inventories at local refineries, some prices have increased by 30-400 RMB/ton. However, some refineries are seeing price reductions of 150-200 RMB/ton due to higher prices and deteriorating product specifications. Current market fluctuations include XinYue Petrochemical and Huahang Energy resuming production, and Yatong Petrochemical’s coke sulfur content rising to 4.2%, leading to a price decrease of 200 RMB/ton. Shandong Huifeng's sulfur content has risen to about 3.1%, leading to a price reduction of 150 RMB/ton.

· Regarding imported coke, while there is restocking demand from downstream companies at the beginning of the month, domestic petroleum coke prices have softened, and downstream companies are purchasing based on need, leading to generally weak sales of imported petroleum coke.

Supply

As of March 3, 21 coking units nationwide were temporarily shut down for maintenance. The national daily production of petroleum coke stands at 87,525 tons, with a coking plant operating rate of 68.30%, a 1.72% increase from the previous working day.

Demand

· Downstream aluminum carbon enterprises are purchasing based on essential needs.

· The anode material market is well-supplied, and as some downstream battery factories’ procurement sentiment gradually improves, the overall operating rate of anode material plants is rising, which has little impact on petroleum coke procurement.

· The silicon carbide industry and the Southern fuel market still show demand for high-sulfur shot coke.

Market Outlook

The petroleum coke market is becoming increasingly divided, but the restocking demand at the beginning of the month still provides some support for sales. In the short term, it is expected that major refineries will maintain stable prices, with some potential for price decreases. Local refinery prices may fluctuate within a range of 10-80 RMB/ton.

(Source: Baiinfo)

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