Petroleum coke price-rising, downstream cost price inversion

Recently, the petroleum coke market remains strong, and the market price trend is slightly different. The shipment of main refineries is good, and part of coke prices continue to push up; The shipment of local refining enterprises is general, and part of the coke price continues to decline. EAF/LF furnace graphite electrode products using high quality petroleum coke raw materials, with a complete industrial chain. Recently, affected by the epidemic, logistics and transportation in some regions have been restricted. In the severely affected areas, the trucks are unwilling to go for transportation, which increases transportation costs, and individual refineries mainly produce and sell by themselves.

1. Main business aspect: The production and sales of Sinopec refinery are stable, logistics and transportation in East China are improved, and there is no pressure on refinery shipments; Most refineries of PetroChina mainly push up the coke price, and the low sulfur coke resources continue to be tight. Under the active demand, the price-support willingness of refineries continues to be strong; The quotation of CNOOC's refineries also increased, and the shipment was relatively stable in general. In terms of local refining, coke prices rose and fell alternatively, shipments of some refineries slowed down, and the overall supply reduced slowly under the coking units maintenance.

2. Downstream market aspect: At present, the enthusiasm of traders to stock up on the market is greatly reduced. As petroleum coke price continues to rise, downstream carbon enterprises are facing cost inversion problem. Especially under the condition of tight supply of low sulfur coke, the demand side increases the proportion of substitute procurement. The price of petroleum coke continues to rise, which also drives the prices of downstream calcined coke, graphite electrode, prebaked anode, carburant, cathode materials and other products to rise at the same time.

Overall forecast: As the price of petroleum coke continues to rise, the downstream cost shows a upside down phenomena, and the receiving shipments is becoming more and more cautious, the market transaction is mainly based on demand, however, crude oil quota reduction and the high level of oil price will continue to support the cost of petroleum coke, and the supply of refinery maintenance market shows a downward trend. It is predicted that petroleum coke price will remain stable at a high level in the short term, with a slight range adjustment. Follow us to focus on the carbon market.