【Petroleum Coke】Main Refineries Shipments Good, Regional Market Stabilizes

Currently, Chinese domestic petroleum coke market has shown a stable trend, with selective price increases in the mainstream market and active shipments in the regional refinery market, resulting in some fluctuation in transaction prices. In terms of main refineries, PetroChina's low-sulfur coke shipments in Northeast China are under no pressure, while high-quality low-sulfur coke prices have risen by an additional 200 yuan/tonne driven by demand from the negative electrode materials market. CNOOC's Huizhou Petrochemical has delayed the coking unit's coke exports and is implementing the latest pricing. The market for medium-high sulfur petroleum coke is stable, with no adjustments in supply and demand for Northwest enterprises and no pressure on petroleum coke shipments in the eastern and along the Yangtze River regions. Jingling Petrochemical has started producing coke from delayed coking units and is selling based on the 3B index. In terms of regional refineries, petroleum coke shipments in the Shandong market are good, with stable purchasing from surrounding enterprises and narrow fluctuations in refinery coke prices. Dongming Petrochemical's Runze plant area has a small amount of shot coke, and transaction prices have experienced a slight decline. HSBC Petrochemical's delayed coking unit is undergoing short-term coke clearing, reducing refinery output to 450 tons/day. In the eastern and central China regions, regional refinery petroleum coke shipments have accelerated due to downstream support, and refineries are currently free from inventory pressure.

Looking at the demand side of the market, there has been a resurgence in procurement activity in the negative electrode materials sector recently, which strengthens the support for high-quality low-sulfur coke shipments. Demand in the graphite cathode sector remains acceptable, with enterprises primarily purchasing Jinxing raw materials for calcined coke, providing continued support for low-sulfur calcined coke shipments. However, the operating rate of electric arc furnaces for steelmaking remains low, leading to sluggish demand for graphite electrodes. Some steel mills primarily rely on consuming previous raw material inventories, which limits the positive market conditions for ordinary quality low-sulfur coke. The market for carbon used in aluminum still maintains rigid support, with calcination enterprises procuring raw materials as needed, supporting refinery shipments for exports. Some enterprises have begun signing contracts for June, maintaining an optimistic outlook for petroleum coke price increases. Demand from the silicon industry is gradually increasing, and shipments of shot coke have performed well, with increased enthusiasm for purchasing low-priced petroleum coke in the Northwest market.

In the short term, the domestic petroleum coke market in China will continue to exhibit active shipments, while imports will have moderate supply and continued high inventory levels. The demand side of the market is supported by sales determining procurement, providing stability. It is expected that the price of domestically produced low-sulfur coke will exhibit a volatile trend, while the shipments of medium-high sulfur petroleum coke will improve, with some regions still anticipating upward expectations. To learn recent market news of  petroleum coke related products, feel free to contact us.