【Petroleum Coke】Price on the Rise

Market Overview

On April 17, 2023, the petroleum coke market saw a slight overall increase in prices. The market average price was 2,340 yuan/ton, with main refinery petroleum coke stabilizing in shipments and some refinery coke prices rising; most local refinery petroleum coke markets had adequate shipments, with prices generally rising. 

Main Refinery

Sinopec's various refinery petroleum coke shipments were generally stable; low-sulfur petroleum coke shipments in the Yangtze River region were still under pressure, with weak demand in the negative electrode and carbon markets, which was bearish for coke prices; mid-to-high sulfur petroleum coke shipments in North China and Shandong were stable, with local refinery coke prices slightly increasing. However, due to the price differential between Sinopec's refinery prices and local refinery coke prices, trading at main refineries was stable, with shipments being the main focus. In South China, high-sulfur petroleum coke shipments were generally stable, with weak support from the ferrosilicon and carbon markets. With the start-up of the No.2 coking unit at Gaoqiao Petrochemical, supply of mid-to-high sulfur petroleum coke in East China has slightly increased. In Northwest China, high-sulfur petroleum coke shipments were not under pressure, with downstream orders active.

The refineries of China National Petroleum Corporation in Northwest China maintained stable shipments this week. Currently, the negative electrode materials and graphite electrode markets are mainly consuming inventory, maintaining just-in-time purchasing, and prices for low-sulfur coke have begun to rebound, to some extent boosting the market. Specifically, Jinxi Petrochemical, a refinery under CNPC in Northeast China, raised its petroleum coke prices by 150 yuan/ton, while other refineries maintained stable trading, with Daqing, Fushun, and Jinzhou Petrochemicals continuing to sell at high prices; the coking unit at Urumqi Petrochemical in Northwest China has been shut down for maintenance since April 15, with some inventory still available for sale.

The various refinery petroleum coke of China National Offshore Oil Corporation traded well this week, with stable coke prices, and refinery inventory overall reduced to a low level.

Local Refineries

As for local refineries, most petroleum coke markets had adequate shipments and refinery coke prices generally rose, boosting the overall petroleum coke market, with price increases ranging from 10-150 yuan/ton; local refinery inventories are currently at low levels, and downstream orders have concentrated on stocking up to supplement inventory due to the long-term low inventory of raw petroleum coke, but overall port inventories still appear to be excessive, and it is expected that the increase in petroleum coke prices will be limited.

Imported Coke

It is expected that there will still be a relatively large amount of imported coke arriving at ports in the latter part of April, and port petroleum coke inventories may continue to rise. Domestic petroleum coke prices are generally stable, with small to moderate increases, which is good for market shipments, but since the cost of imported petroleum coke was generally higher in the early stages, traders are still hesitant to sell, and the delivery speed of imported petroleum coke at ports is still slow. However, with the slight increase in domestic coke prices, the terminal pick-up of domestic coke at the port has increased; in the fuel coke market, coal market prices are weak, and with the opening up of imported Australian coal, daily consumption at power plants has continued to decline due to factors such as weather warming, unit maintenance, and clean energy substitution, which has limited support for high-sulfur shot coke, while mid-to-low sulfur shot coke shipments remain stable.

Future Predictions

In summary, the market for low-sulfur petroleum coke is generally stable, with some refinery coke prices basically bottoming out and downstream purchasing activity increasing. The market for medium- to high-sulfur petroleum coke has no clear positive support for downstream demand in the short term, and demand is expected to remain weak. As medium- to high-sulfur petroleum coke continues to rise, downstream observers are becoming more cautious, but many refineries have contracts from previous periods that are still being executed. It is expected that there is still room for upward price exploration in low-sulfur petroleum coke, while stability is the main factor for medium- to high-sulfur petroleum coke prices. Information on the supply and demand of the petroleum coke market, feel free to contact us for further details.