【Petroleum Coke】Weak Trading in the Market, 

Can it Recover from the Decline?

Data Source: Oilchem

As of September 21st, China domestic petroleum coke prices in China have continued to decline recently. Limited downstream demand for low-sulfur coke has led to weakening market trading, reduced willingness among downstream buyers to receive shipments, and no positive support for outbound shipments, and learn about the market information of graphitized petroleum coke. Prices have been adjusted down by 200-300 yuan/ton, marking the largest adjustment in recent weeks. Prices for medium to high-sulfur coke have also decreased, with reductions ranging from 50 to 150 yuan.

Data Source: Oilchem

The main reason for the recent price decline is the continuous increase in domestic petroleum coke production. This week, China's total domestic petroleum coke production reached 611,500 tons, an increase of 7,300 tons or 1.21% compared to the previous week. Some coke production units in this period have resumed production, and there are currently no delayed coking units under maintenance, indicating a significant decrease compared to last year. On the demand side, there is generally a lack of enthusiasm among downstream buyers, leading to poor market participation. Supply and demand imbalances have resulted in weak trading in the petroleum coke market in recent times.

Future Outlook: With the approaching holiday season, some downstream enterprises are engaged in pre-holiday stocking operations, which could be a positive factor for petroleum coke shipments. It is expected that there is no further room for decline in petroleum coke prices in the near future, and with the improvement in downstream demand, there is a possibility of gradual recovery in petroleum coke prices. For more information on the petroleum coke industry,  feel free to communicate with us.