Local refined petroleum coke prices rose in July. Can the downward trend be reversed in August?

In the context of stable demand, the supply of petroleum coke is crucial to the market. In China the major domestic units' overall supply has declined, and the local refineries' supply has changed frequently. HP graphite electrode has high bulk density and low power consumption for EAF steelmaking. Therefore, independent refineries' output is a key factor of concern.

In July, local refineries' petroleum coke average price was 4638 yuan/ton, down 103 yuan/ton from the previous month.The domestic petroleum coke market was mixed in July.

In early July, the prices of refineries affiliated to CNOOC rose, and the prices of Sinopec and PetroChina were basically stable. In terms of local refining, there is a certain replenishment demand in the downstream, and petroleum coke price rose on the strength of the situation; As the replenishment cycle ended, the petroleum coke price also rose to a high level, and the refineries began to make downward adjustments for shipment. Since the middle and late July, Sinopec's subordinate refineries have generally risen, CNOOC has adjusted, and PetroChina has operated stably; Affected by refinery maintenance and index changes, local refineries' low sulfur and high sulfur coke resources are tight and prices rise, and the fluctuation range of medium sulfur coke is limited.

In terms of low sulfur coke, Daqing refinery started production, and the high-priced low sulfur coke price callback. In terms of medium and high sulfur coke, aluminum price support is limited,  the overall market sentiment is relatively low, and medium and high sulfur coke price fluctuates. In the first half of the year, the overall petroleum coke market maintained a strong trend. Affected by the Winter Olympics in early 2022, the overall operating load of domestic refineries was relatively low, and petroleum coke resources' supply was limited. In addition, the good demand in the downstream, petroleum coke price kept rising. From April to early May, some domestic refineries plan to carry out maintenance. At this time, the aluminum price has been fluctuating on the 20000 line, and petroleum coke has reached a new height on this basis. After late May, due to the strong rise of petroleum coke, the financial situation of downstream carbon enterprises was poor, the concern about the high price of petroleum coke was intensified, and the purchase willingness was weak. Petroleum coke began to stop rising and falling, opening a broad fluctuation trend.

In terms of plant startup and shutdown, Hualian and Youtai will start production and Dongming maintenance in the next step, and the domestic petroleum coke supply will still maintain a stable pattern. The quantity of imported coke still decreased in August, but with the decrease of the outer disc price, the import volume will increase from the end of the third quarter. During this period, the diesel market may enter the off-season, and the operating load will decline. More petroleum coke market reports, feel free to contact us.