【Coke Price】December Low-Sulfur Petroleum Coke and Petroleum-based Needle Coke Raw Coke Prices Review and Future Trends Forecast

The average price of low-sulfur petroleum coke in December was 2717 RMB/ton, a decrease of 9.52% compared to the previous month. 

This month, low-sulfur petroleum coke prices continued to operate weakly. Influenced by the sluggish demand at the end of the year, downstream negative electrode enterprises have controlled finished products and raw material inventories, and the operating rate has been adjusted downwards. Raw material procurement is mainly based on just-in-time needs. In the first half of this month, in order to stimulate sales, PetroChina lowered its low-sulfur coke's listed prices several times, and CNOOC also adjusted its low-sulfur coke prices accordingly. In the latter half of this month, with the approach of the New Year holiday, some downstream enterprises have engaged in limited pre-holiday stocking, leading to a slight increase in the sales volume of low-sulfur coke. In addition, due to the decline in low-sulfur coke prices to a low level, prices have temporarily stabilized. Looking ahead, to prepare for the Spring Festival holiday, downstream enterprises may continue to stock up in January. However, due to the generally pessimistic expectations of negative electrode and graphite electrode enterprises for the first quarter, the incremental demand brought about by stocking may be limited, making it difficult to provide significant support to low-sulfur coke prices. It is expected that the price of low-sulfur petroleum coke will remain weak and stable in January, with a possibility of a slight downward adjustment.

In December, the average price of petroleum-based needle coke raw coke was 4820 RMB/ton, a decrease of 2.47% compared to the previous month.

This month, the price of petroleum-based needle coke raw coke showed a slight downward trend. In terms of cost, although international crude petroleum-based prices fell slightly in the first half of the month, the tension in the Red Sea region led to a rebound in crude petroleum-based prices in the middle and late months. Currently, it remains at a high level, providing strong support to the prices of raw material low-sulfur petroleum-based slurry. The prices of petroleum-based needle coke raw coke products have now approached the cost line. In terms of demand, the prices of downstream negative electrode materials continue to decline, and the pressure on negative electrode enterprises to reduce costs is increasing. This has led to a decrease in the proportion of needle coke procurement and usage. In the current situation of weak demand and strong cost support, needle coke enterprises are in a difficult situation. Despite the pressure on prices, the decline is limited, and the effect of boosting downstream procurement is also very limited. Therefore, many petroleum-based needle coke manufacturers are currently shifting production to petroleum coke or increasing the proportion of needle coke calcination production. Production is based on sales, and finished product inventories are controlled.

Looking ahead, the outlook for next year's petroleum-based needle coke market remains unfavorable. Negative electrode factories, facing cost reduction requirements, are more inclined towards low-sulfur and even medium-to-high sulfur petroleum coke, showing less favoritism towards needle coke. At the same time, needle coke enterprises are in a weak position in negotiating prices with upstream and downstream, and cost support also limits the downward exploration of coke product prices. It is expected that the price of petroleum-based needle coke raw coke will remain weak and stable in January, with a possibility of a slight decline, while actual production and operating rates are both subject to reduced expectations. For more information on the coke market, feel free to contact us at any time.