【Carburant】Carburant Market Prices 

Continue Weak and Stable Operation

Recently, China's carburant market prices have remained weak and stable, with an average operating rate of 73.63%, a decrease of 1.01 percentage points compared to the previous period, and an increase of 26.95 percentage points compared to the same period last year. 

Data Source: Oilchem

In terms of prices: the recent trading atmosphere in the carburant market is generally moderate. Regarding calcined coal, coal prices have remained weak and stable, with sufficient domestic coal supply, and the market supply and demand situation is relatively balanced, leading to minor fluctuations in coal market prices. The raw material, anthracite, for calcined coal carburants has seen weak and stable prices, with most manufacturers maintaining normal production. Shipments of graphitized carburants are average, with downstream purchases continuing to focus on just-in-time procurement, lacking positive support. Prices of graphitized carburants are mainly weak and stable. In the Northeast region, prices of carburants for calcined pitch coke have slightly decreased. The prices of raw materials, low-sulfur petroleum coke, have also seen a marginal decline. The downstream steel mills' operating rates have dropped, and the demand side support is moderate. In the Northeast region, prices of carburants for calcined pitch coke have seen a narrow downward adjustment. 

Data Source: Mysteel

In terms of demand: This week, the independent arc furnace operating rate and capacity utilization rate across the country have slightly decreased. The main reason for the decline in the operating rate this week is the severe cold weather and the impact of the upcoming Chinese New Year. Currently, most electric arc furnace steel mills still maintain a profitable state, so some mills choose to increase production by slightly extending operating hours, with an increase of around 1-2 hours. In the near term, due to worsened weather conditions, some mills in certain areas have reduced operating hours slightly for environmental reasons. Looking ahead to next week, a steel mill in South China's Guangdong plans to shut down for maintenance starting on the 31st, involving one 70-ton electric arc furnace.

Overall, with raw material prices remaining stable and general trading activity on the demand side, coupled with the approaching Chinese New Year and some steel mills planning routine maintenance, and in the Southwest region entering the dry season with increased electricity costs, some steel mills may slightly reduce production time. The market demand support for the Carburant market is moderate. It is expected that in the near term, domestic Carburant market prices will remain weak and stable. Some manufacturers may be affected by environmental policies and severe snow weather, which could impact shipments. Considering the overall cost of raw materials and downstream demand, it is expected that the Carburant market prices will mainly operate weakly and steadily in the near term. Feel free to contact us about the carburant market analysis in 2024.