【Petroleum Coke】Steady Prices, Positive Trading Outlook

Petroleum coke market analysis

1. Market Overview

In the week (July 14th - July 20th), the petroleum coke market has seen overall good trading, and refinery coke prices have remained stable with an upward trend. In terms of main operations, refineries' shipments have varied, with low-sulfur coke facing some pressure while medium to high-sulfur coke maintains steady shipments. PetroChina's refineries continue to focus on contract sales, ensuring stable shipments. Graphitized petroleum coke series are available for your choice. CNOOC's petroleum coke has seen robust shipments, and some refineries have raised prices substantially. Sinopec's petroleum coke prices are market-oriented, and there have been active price increases. Prices of locally produced petroleum coke remain firm, with most refineries experiencing overall increases, leading to continuous upward price trends. As of now, the average prices for petroleum coke are 3390 CNY/ton for 1#, 2630 CNY/ton for 2#, 2440 CNY/ton for 3#, and 1665 CNY/ton for 4-5#. 

2. Main Refineries

PetroChina: In the current period, the Northeast low-sulfur petroleum coke market remains weak, with high-quality 1# petroleum coke priced at around 4500 CNY/ton, while demand-driven procurement keeps coke prices stable. Prices for regular quality 1# coke are between 2700-3000 CNY/ton, remaining unchanged from the previous week, as downstream graphite cathode and graphite electrode purchases show poor enthusiasm, leading to low operating rates. Calcination enterprises focus on executing contract orders with regular shipments. Downstream demand for low-sulfur petroleum coke is relatively weak, and trading activity is subdued, with refineries primarily focused on pricing stability. In Northwest China, trading activity is moderate, with 3# coke prices at 2385 CNY/ton, down 85 CNY/ton from the previous week, and moderate purchasing enthusiasm from downstream consumers, mostly covering immediate needs, leading to a narrow price decline.

CNOOC: In the current period, CNOOC's petroleum coke has seen robust shipments, and prices have steadily increased. Taizhou Petrochemical in East China has no shipment pressure, with a stable downstream receiving mentality, and the refinery's current pricing is transitioning steadily. Zhoushan Petrochemical actively ships petroleum coke, with a positive downstream market sentiment, resulting in a price increase of 120 CNY/ton. Huizhou Petrochemical in South China maintains stable petroleum coke shipments, with a daily production of around 2600 tons and refinery coke prices following a 100 CNY/ton increase. Prices for CNOOC's asphalt petroleum coke remain stable with consistent shipments.

Sinopec: In the current period, Sinopec's refineries have seen good petroleum coke shipments, with prices slightly on the rise. In East China, high-sulfur petroleum coke is stable in terms of shipments, with refineries maintaining low inventory and transactions occurring at slightly higher prices based on market demand. In South China, shipments of high-sulfur coke remain stable, with Maoming Petrochemical's petroleum coke primarily for internal use, and stable demand from downstream carbon enterprises, leading to stable transactions for Guangzhou Petrochemical and Beihai Petrochemical. Sinopec's petroleum coke market in Central China sees stable trading, with strong procurement support from downstream, resulting in price increases of 20-40 CNY/ton. Jingmen Petrochemical and Changling Refinery currently execute 3C indicators for sales, while Anqing Petrochemical's petroleum coke shipments remain stable, with strong downstream procurement mentality. Luoyang Petrochemical's delayed coking unit is expected to start producing coke on the 21st, and petroleum coke production is gradually recovering. In Northwest China, Tahe Petrochemical sees moderate trading activity, stable refinery shipments, and good purchasing enthusiasm from the demand side, resulting in narrow upward price trends. In North China, Sinopec's refineries actively ship, with coke prices slightly rising and inventory at low levels. In Shandong, Sinopec's refineries have seen petroleum coke prices increase slightly, with Qingdao's large refinery unit resuming normal production, leading to overall stable shipment conditions.

3. Local Refineries

Shandong Region: Currently, the average prices are 2700 CNY/ton for 2A, 2402 CNY/ton for 2B, 2421 CNY/ton for 3A, 1930 CNY/ton for 3B, and 1861 CNY/ton for 3C. In the current period, Shandong's local petroleum coke prices have remained stable with slight increases in indicator prices, and shipments of regular products have been good, driven by increased downstream procurement of raw petroleum coke, resulting in overall improved trading conditions.

Northeast and North China: In Northeast China, the petroleum coke market has seen active trading, with Liaoning Baolai showing positive downstream purchases and a slight increase in transaction prices during this period. Huajin Petrochemical's new bidding round saw moderate downstream user participation and a narrow price decline. In North China, refineries have actively shipped, and coke prices have maintained an upward trend. Xinhai Petrochemical in Hebei Province is expected to resume production at the beginning of August.

East and Central China: In East China, the petroleum coke market has seen active trading, with Liaoning Baolai showing positive downstream purchases and a slight increase in transaction prices during this period. Huajin Petrochemical launches a new round of bidding, with moderate participation from downstream users and a narrow price decline. In North China, refineries have actively shipped, and coke prices have maintained an upward trend. Xinhai Petrochemical in Hebei Province is expected to resume production at the beginning of August.

4. Future Forecast

Main Forecast: In the current period, the low-sulfur petroleum coke market continues to operate weakly, with some refineries persistently implementing contract sales and downstream enterprises cautiously trading, primarily focusing on restocking for immediate needs. Refineries mostly rely on contract orders, with insufficient positive support for low-sulfur coke. It is anticipated that the low-sulfur coke market will continue to trade weakly or experience narrow fluctuations in the next period. Domestic petroleum coke remains in the destocking phase, and gradual downstream demand recovery provides strong support for petroleum coke shipments. In the short term, the domestic petroleum coke market is expected to continue to show positive trading trends, with some refineries actively shipping and the expectation of price increases.

Local Refinery Forecast: In the current period, domestic local petroleum coke prices have shown small and steady increases, with stable shipments of indicator products and downstream purchases based on demand. It is expected that domestic local petroleum coke prices will continue to experience small fluctuations in the next period. Follow us to learn more about the petcoke industry.