【Recarburizer】Price Increase: Rising Petroleum Coke and Recovering Downstream Demand

Calcined petroleum coke, with its high carbon content, low sulfur, and low impurities, plays a vital role in modern manufacturing, especially in the aluminum and steel industries.

【Recarburizer】Price Increase: Rising Petroleum Coke and Recovering Downstream Demand

Entering March, support from raw material petroleum coke has strengthened, and downstream restocking activities have become more frequent. Overall, petroleum coke prices are showing a fluctuating upward trend, providing solid cost support for the recarburizer market, and pushing prices higher. With continuous increases in the raw material market and a gradual recovery in downstream demand, the recarburizer market has gained sufficient support, leading to rising prices.

I. Upward Trend in Raw Material Prices, Increasing Cost Pressure on Recarburizers

Figure 1: Price Trends of Different Grades in the Petroleum Coke Market

From the chart above, it can be seen that since the end of February, petroleum coke prices have shown a rebound trend, with medium-sulfur petroleum coke experiencing a more significant increase. As raw material prices rise, cost pressure on recarburizer producers has increased.

At present, the average price of 1# petroleum coke is RMB 4,701/t, up RMB 118/t week-on-week, an increase of 2.57%; the average price of medium-sulfur coke is RMB 3,827/t, up RMB 126/t week-on-week, an increase of 3.4%; and the average price of high-sulfur coke is RMB 2,102/t, up RMB 79/t week-on-week, an increase of 3.91%.

II. Gradual Recovery of Downstream Operations, Increasing Support

Figure 2: Average Operating Rate of EAF Steel Mills in China

As of March 13, the average capacity utilization rate of 94 independent electric arc furnace (EAF) steel mills in China was 50.44%, up 29.73 percentage points month-on-month and down 3.05 percentage points year-on-year. The average operating rate was 57.34%, up 32.63 percentage points month-on-month and down 12.59 percentage points year-on-year.

Currently, both the capacity utilization rate and operating rate of independent EAF steel mills in China have increased significantly. The main reason is that after the holiday, EAF steel mills resumed production as planned, while downstream demand is also gradually recovering. Regionally, a higher proportion of steel mills in East China and South China have resumed production this week. Some mills in Southwest, North China, and Central China have also resumed, while those in Northeast and Northwest China have yet to restart. A total of 28 EAF steel mills have resumed production across regions.

From the perspective of the relationship between scrap and finished steel prices, most finished steel prices are fluctuating upward, while scrap prices continue to rise. However, the increase in finished steel prices is not as strong as that of scrap, limiting profit margins for steel mills. As a result, mills that have resumed production are less likely to significantly increase output.

III. Support from Upstream and Downstream Drives Recarburizer Prices Higher

Figure 3: Recarburizer Market Price Trends

As shown above, recarburizer prices are rising in line with raw material costs. The ex-factory price of 92C calcined coal recarburizer is RMB 1,530/t; graphitized recarburizer is RMB 4,500/t; and calcined petroleum coke recarburizer is RMB 6,200/t.

In the calcined coal recarburizer market, raw material anthracite prices are relatively stable with slight adjustments, and market supply is sufficient, keeping quotations stable, with minor price adjustments in some regions. In the calcined coke and graphitized markets, demand for low-sulfur coke is supported by rigid downstream needs, with good trading performance. Medium- and high-sulfur coke markets also show solid transactions, with prices continuing a slight upward trend. Production costs are still expected to rise, and most graphitized recarburizer producers are currently adopting a wait-and-see approach.

Overall, strong raw material cost support and improving downstream demand are driving a firm upward trend in recarburizer prices. The recarburizer market is expected to remain stable with a strengthening trend in the near term.

Feel free to contact us anytime for more information about the petroleum coke market. Our team is dedicated to providing you with in-depth insights and customized assistance based on your needs. Whether you have questions about product specifications, market trends, or pricing, we are here to help.