China's petroleum coke has four major market development characteristics

1. Listed companies in petroleum coke industry: Sinopec (600028), CNOOC (hk.00883), PetroChina (601857), etc.

2. Core data of this paper: Petroleum coke import dependence, petroleum coke self-sufficiency rate, petroleum coke output distribution, petroleum coke supply and demand difference 

China's dependence on petroleum coke imports continues to increase, but has declined in recent months

According to the data of petroleum coke import dependence released by the China Petroleum and Chemical Industry Federation (CPCIF), from 2019 to 2021, China's petroleum coke import dependence tends to increase, which indicates that China's import demand for petroleum coke is increasing, or due to the increasing market demand for downstream petroleum coke: anode materials, pre-baking anodes and graphite electrodes, China's petroleum coke demand has increased significantly in a short time. With high-quality low sulfur petroleum coke as raw material, HP GRAPHITE produces graphite electrodes for EAF steelmaking all year round.

As the main production base of non-ferrous and ferrous metals in the world, China is not only a major producer of petroleum coke, but also a major consumer of petroleum coke. With the vigorous development of downstream industries, China also needs a large number of imported petroleum coke resources every year to supplement the domestic demand gap, and its import growth trend is still increasing.

As of September 1, 2021, the import dependence of petroleum coke has increased from less than 20% to more than 27% in just two years. However, from the end of July 2021 to the end of February 2022, the dependence on petroleum coke imports decreased. As of February 28, 2022, the dependence on petroleum coke imports has dropped to 18.50%.

China's petroleum coke self-sufficiency rate has continued to decline, but has rebounded sharply in recent months

According to the data of petroleum coke import dependence released by China Petroleum and Chemical Industry Federation, China's petroleum coke self-sufficiency rate showed a fluctuating downward trend from 2019 to 2021. On December 31, 2021, the self-sufficiency rate of China's petroleum coke dropped below 75%, indicating that China's petroleum coke production is increasingly difficult to meet the demand for petroleum coke.

However, on February 28, 2022, the self-sufficiency rate of China's petroleum coke returned to more than 80%.

China's petroleum coke has certain regional characteristics

——Petroleum coke production is concentrated in Shandong

As petroleum coke industry is related to the traditional energy industry, the supply and demand of petroleum coke industry has certain regional characteristics, and Shandong has the largest petroleum coke output.

According to the statistics and analysis published by the National Bureau of statistics, in 2021, Shandong petroleum coke output will take the lead, accounting for 38% of China's total output; Secondly, Liaoning petroleum coke output accounts for 11% of China's total output.

From the perspective of output, Shandong is the largest petroleum coke production area in China, forming an absolute development advantage.

——There is a large gap between supply and demand in Northwest China

According to the statistics of enterprises' petroleum coke supply and demand data, in 2020, the gap between supply and demand in East China, Shandong and Northeast China was relatively large, and there is a situation of oversupply; South China and the regions along the Yangtze River are in a relatively balanced state of supply and demand. However, the supply and demand in Northwest, North China and Southwest China are greatly different, and there is a situation of short supply.

China's petroleum coke industry is highly concentrated

According to the statistical analysis of domestic petroleum coke production capacity in Contemporary Petroleum and Petrochemical, Volume 29, Issue 12, 2021, it is concluded that Sinopec, PetroChina and CNOOC account for more than 50% of petroleum coke production capacity.

According to production capacity, CR3 in China's petroleum coke industry was more than 60% in 2016. In 2020, CR3 of China's petroleum coke industry decreased to below 60% compared with 2016. According to preliminary statistics, China's petroleum coke industry CR3 may decline may decline again in 2021. But in general, the concentration of China's petroleum coke industry is still at a high level. Reading more related reports, please contact us.