Calcined petroleum coke is the product of petroleum coke heated at high temperatures (usually above 1200°C). The calcining process removes volatile substances and impurities, improving its purity and carbon content. Calcined petroleum coke is primarily used in the production of artificial graphite, battery anode materials, aluminum electrolysis cells, and certain specialty chemicals.

【Petroleum Coke】Prices "Avalanche"! Supply Soars, Demand Slows, How to Break the Industry Dilemma?

Recently, the petroleum coke market has undergone dramatic changes, with prices continuing to "drop without stopping," plunging again and drawing significant attention both within and outside the industry. This price fluctuation, like a toppled domino, has had a profound impact on the petroleum and chemical industry chain.

From the supply side, a significant increase in petroleum coke production is one of the main reasons for the price decline. Refining companies have raised their operating rates to meet the strong demand for major oil products such as gasoline and diesel. During the refining process, petroleum coke, as an inevitable byproduct, has its production closely tied to crude oil processing volumes. With the full operation of crude oil refining units, petroleum coke production has also increased. Industry data indicates a notable rise in petroleum coke output. In the international market, petroleum coke supply is also showing a relaxed trend. Some major petroleum coke-producing countries, in order to alleviate their own inventory pressures, have increased exports. For example, in the Middle East, due to the expansion of local refining capacity and limited ability to absorb petroleum coke in downstream industries, a large amount of petroleum coke has flooded the international market, with a considerable portion flowing into China. These low-priced imported petroleum cokes have further increased domestic market supply, exacerbating the oversupply situation.

The weak demand from downstream industries has also contributed to the decline in petroleum coke prices. In the traditional aluminum anode sector, as the aluminum industry undergoes cyclical adjustments, some aluminum plants have reduced production capacity due to insufficient market demand and aluminum price fluctuations. As a key downstream product of petroleum coke, the reduction in demand for aluminum anodes directly impacts the petroleum coke market. The sluggish steel industry has also affected petroleum coke demand. In electric arc furnace steelmaking, petroleum coke can be used as carburants, but due to overcapacity and environmental production restrictions in the steel industry, the demand for carburants has significantly weakened, leading to reduced use of petroleum coke. In recent years, the development of clean energy and alternative materials has also exerted pressure on the petroleum coke market. As solar energy, wind energy, and other new energy industries rapidly rise, new materials in some traditional petroleum coke applications have started to emerge, replacing part of the demand for petroleum coke. For example, in the research and production of some new battery materials, certain materials can replace petroleum coke in specific performance areas, further compressing the market space for petroleum coke.

In the short term, the downward trend in petroleum coke prices may continue. On the supply side, refining companies are unlikely to reduce operating rates in the short term due to production plans and market share considerations, so petroleum coke output will remain at a high level. On the import side, the international petroleum coke market's relaxed supply situation is unlikely to change in the short term, and imports are expected to remain high. On the demand side, the recovery of traditional downstream industries like aluminum and steel remains uncertain, making a significant increase in demand unlikely in the short term. In the long term, with the gradual improvement of the economic situation and the structural adjustments and upgrades of downstream industries, petroleum coke demand is expected to gradually stabilize and rebound. With continuous technological advancements, breakthroughs in high-value-added applications of petroleum coke, and the development of more new applications and products, the petroleum coke market will be revitalized, alleviating the current oversupply pressure.

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