Petroleum coke began to play supply-demand game under market differentiation

In the first half of 2022, the prices of calcined petroleum coke and pre-baked anode in the downstream were driven by the continuous rise in the price of raw petroleum coke. However, since the second half of 2022, the price trend of petroleum coke and the prices of downstream products gradually began to diverge.

First of all, taking 3B petroleum coke in Shandong Province as an example, China's petroleum coke resources supply has been in a tight state in the first five months of 2022. The 3B petroleum coke price rose from 3000 yuan/t at the beginning of the year to more than 5000 yuan/t in the middle of April, and the price remained basically in late May. Then, with the increase of market supply, petroleum coke price began to loosen. Until early October, petroleum coke fluctuated between 4800-5000 yuan/ton. Since late October, on the one hand, China's petroleum coke supply has remained at a high level. Moreover, the epidemic affected the upstream and downstream transportation, and the price of petroleum coke entered a state of continuous decline.

Secondly, with the raw petroleum coke price increased, calcined coke price basically kept a slow rising trend in the first half of the year. Calcined coke price fell slightly due to the decline in the price of raw materials at the beginning of the second half of the year. However, supported by the demand for anode graphitization in 2022, regular calcined coke demand will increase significantly, which will play a huge supporting role in the demand of the overall calcined coke industry. In the third quarter, China's calcined coke resources were once strained. Therefore, since September, the price trend of calcined coke and petroleum coke is clearly opposite. Until December, crude petroleum coke price dropped by more than 1000 yuan/ton, the sudden drop in cost led to a slight drop in the price of calcined petroleum coke. Thus, the Chinese market supply and demand is still tight, price support is still strong.

Then, as a product priced according to raw materials price, The pre-baked anode price trend in the first three quarters is basically consistent with the raw material petroleum coke. However, in the fourth quarter pre-baked anode price and petroleum coke price trend also appeared a certain difference, the main reason is that China's local refining petroleum coke price fluctuates frequently and the market is highly sensitive. The pricing mechanism of pre-baked anode includes the price of main petroleum coke as the monitoring sample. The pre-baked anode price remained relatively stable due to the lagging price fluctuation of the main petroleum coke price market and the continuous rise of coal tar pitch price. For pre-baked anode manufacturers, the profits have been expanded to a certain extent. In December, the price decreased slightly due to the sharp decline in the price of raw petroleum coke in November.

To sum up, China's petroleum coke products are facing oversupply and price constraints. However, the supply and demand of calcined coke industry is still in a tight balance, which still supports the price. Pre-baked anode is priced according to raw materials. Although the current supply and demand is slightly abundant, the raw material market is still supported and the price has not dropped significantly. Reading more reports of petroleum coke, feel free to contact us.