【Carburant】Market Slump: Weak Demand

This week, the domestic high-grade carburant market price continued to decline. Raw material price fluctuations were relatively small, and due to the weak downstream demand, most companies reduced their prices. The market sentiment was cautious, with significant price differences between enterprises, resulting in a weak high-grade carburant market. The medium-grade carburant market price continued to be weak, with some companies lowering their prices. This week, the raw material petroleum coke market shipments were acceptable, and the medium-grade carburant raw material prices remained generally stable. However, downstream procurement enthusiasm was poor, leading to a weak carburant market transaction situation, and bearish medium-grade carburant prices. Low-grade carburant market prices experienced a slight decline, with the overall low-grade carburant market trending downward. Due to different raw material procurement quality and proportions among companies, there were price differences in actual transaction prices. Additionally, individual companies reported acceptable shipments and no inventory. 

This week, the supply of high-grade carburants in the market was sufficient. Carburant companies in various regions were producing normally according to their orders. Domestic negative graphite supply remained largely unchanged from last week due to fewer graphite orders. Medium-grade carburant companies mostly executed order production, with production and sales carried out simultaneously, and weak demand leading to fewer new orders. Some companies reduced production, while most continued normal operations. The overall supply of the low-grade carburant market was sufficient, with most carburant companies in the main production area of Ningxia operating normally. Some individual companies slightly reduced production; one company in the Northeast region temporarily had no inventory; and one company in the North China region suspended production with no current plans for resumption.
This week, low-grade carburant inventory slightly decreased, with some companies reducing production and shipments primarily based on inventory. Some companies reported no inventory. Medium and high-grade carburant companies mostly executed order production, with production and sales carried out simultaneously, and no significant increase in demand. Some individual companies focused on reducing inventory, which may affect medium and high-grade carburant inventory in the short term.
This week, low and high-grade carburant market prices weakened, and the market transaction atmosphere was weak. The medium-grade carburant market price remained flat, with some individual companies experiencing a slight price decline. The market's overall wait-and-see sentiment was strong, and carburant market prices were relatively chaotic.
The procurement enthusiasm for the petroleum coke market was acceptable, but overall demand support was limited. It is expected that the main petroleum coke market will remain stable next week, with local refinery petroleum coke prices slightly probing for increases. Domestic low-sulfur petroleum coke prices bottomed out, and the low-sulfur calcined coke market may continue to be supported by raw materials. Downstream demand remained weak, but the raw material side still supported the calcined coke market. It is expected that the medium and high sulfur calcined coke market prices will remain stable next week. If raw material prices continue to increase, medium and high sulfur calcined coke prices may rise slightly.
The supply of carburants of various grades in the market was relatively abundant, and the strength of terminal steel demand release was limited. The de-stocking speed of building materials slowed down, indicating a continuing decline in demand. As the peak season time is running out, the market's expectation for demand to peak is deepening, and steel mills mainly focus on the rigid procurement of carburants.
In summary, the cost fluctuations of low-grade carburant is relatively small, and it is expected that the prices of low-grade carburant will continue to adjust weakly; the raw material prices of medium-grade carburant is mostly stable with slight changes, and the downstream purchasing enthusiasm is insufficient, so the market price of medium-grade carburizers is expected to remain stable; the cost side of high-grade carburant lacks strong support, and the demand side has little stimulation, so the market price is expected to slide steadily. Follow us for continuous updates on the future trends of carburant.