【CPC】Cautious Reception by Downstream Enterprises as Low-Sulfur calcined petroleum coke Market Observes Standstill

Market Dynamics

Currently, low-sulfur calcined petroleum coke (CPC) enterprises primarily focus on stabilizing shipments and executing orders. Raw materials are still being sold at fixed prices, creating an atmosphere of market observance. Many companies have not yet finalized orders for December. Sales of calcined petroleum coke (sulfur at 3.5% , no specific requirements for trace elements) is hindered, leading some manufacturers to reduce production or shift towards calcined petroleum coke with specified vanadium content for electrolytic aluminum. Additionally, with the recent continuous decline in petroleum coke prices, there is a low enthusiasm for receiving shipments downstream, resulting in a continuous increase in calcined petroleum coke inventories for some enterprises. 

The mainstream transaction prices in the market for low-sulfur calcined petroleum coke (Jinxi and Jinzhou petroleum coke as raw materials) range from 3600 to 4000 RMB/ton. For low-sulfur calcined petroleum coke (Fushun petroleum coke as raw material), the mainstream ex-factory transaction prices are between 5050 and 5150 RMB/ton. As for low-sulfur calcined petroleum coke (Liaohe and Binzhou Zhonghai petroleum coke as raw materials), the mainstream transaction prices range from 3080 to 3550 RMB/ton.

For medium to high sulfur calcined petroleum coke (sulfur at 3.0%, no specific requirements for trace elements), the mainstream contract price was previously 2100 RMB/ton, and the current mainstream ex-factory cash prices being negotiated range from 2000 to 2050 RMB/ton. Similarly, for medium to high sulfur calcined petroleum coke (sulfur at 3.5%, no specific requirements for trace elements), the previous mainstream contract price was around 1900-1950 RMB/ton, and the current mainstream ex-factory cash prices being negotiated range from 1800 to 1900 RMB/ton. For medium to high sulfur calcined petroleum coke (sulfur at 3.0%, vanadium at 400), the previous contract price was 2600 RMB/ton, and the current negotiated ex-factory cash prices range from 2400 to 2600 RMB/ton.

Petroleum Coke: Currently, the overall trading performance in the petroleum coke market is average. Refineries are steadily shipping, but there is differentiation in shipments from regional refineries. Some high-priced petroleum coke faces pressure in shipments, leading to a continued decline in coke prices.

Graphite Electrodes: The mainstream enterprises' production remains stable, with some companies halting production to clear inventory. Additionally, companies in the Hebei region continue to be affected by environmental restrictions, leading to a slowdown in production pace.

Electrolytic Aluminum: Export data for automobiles continues to improve, coupled with Shenzhen's policy to further optimize standard housing, boosting market sentiment, resulting in a rise in spot aluminum prices.

Negative Electrode Materials: As negative electrode production capacity is gradually released, there is an increase in the supply of finished products of medium and low-end negative electrode materials. The homogenization of these products becomes more severe, leading downstream battery factories to negotiate prices. The actual transaction prices of negative electrode materials are at a low level.

Low-sulfur calcined petroleum coke enterprises are cautious in stabilizing shipments and adopting a wait-and-see attitude towards raw material prices. Medium to high sulfur calcined petroleum coke enterprises are experiencing partial losses in production, and prices align with the expectations of downstream enterprises. It is anticipated that in the short term, prices for low-sulfur calcined petroleum coke will remain stable, with some minor adjustments of around 100 RMB/ton due to the influence of raw materials. Prices for medium to high sulfur calcined petroleum coke are expected to gradually stabilize. Follow us to track the latest news on the carbon market.