【Petroleum Coke】Narrow Price Fluctuations and Anode Overcapacity

1. Petroleum Coke

This week, the price of Fushun Petrochemical was adjusted up by 100 yuan/ton to 3390 yuan/ton, and the price of Jilin Petrochemical was adjusted down by 100 yuan/ton to 2340 yuan/ton. The market price of local refining is generally stable with minor fluctuations. Some refineries have a downward trend in prices, but the extent is not large. The shipment situation of refineries under PetroChina is relatively smooth, with some refineries in the northeast region reallocating resources. The overall planned volume of refineries has been reduced, the market supply of high-quality low-sulfur coke has slightly tightened, and prices have a slight upward trend. The domestic market for low-sulfur coke is relatively balanced in terms of production and sales, with some refineries planning maintenance, resulting in a slight contraction in market supply compared to the previous period. 

2. Calcined Petroleum Coke 

The price of low-sulfur calcined petroleum coke remains stable, with stable demand for graphite electrodes and cathodes supporting the low-sulfur calcined petroleum coke market. Shandong's medium-sulfur calcined petroleum coke shipments continue to be stable, with the average price slightly increasing compared to last week. The price of low-sulfur calcined petroleum coke still has a slight upward trend, with stable procurement in downstream industries. The average price of high-sulfur petroleum coke from local refineries has slipped, while the average price of calcined petroleum coke for general goods has slightly increased, with stable procurement and a rebound in theoretical profits for calcining production companies.

3. Needle Coke

This week, the needle coke market prices remained stable, with raw petroleum-based needle coke quoted at 5000 yuan/ton and calcined petroleum coke at 7500 yuan/ton; raw coal-based needle coke quoted at 5000 yuan/ton, and calcined petroleum coke at 7500 yuan/ton. This week saw an increase in the operation of needle coke enterprises, with a slight increase in production. The anode material market remains flat, with downstream demand recovery still taking time. The graphite electrode sector maintains its just-in-time operation and procurement, with limited new orders, leading to low demand for needle coke.

4. Coated Asphalt

Coated asphalt prices remain weak, with petroleum-based prices stable at 11500 yuan/ton, and coal-based prices stable at 10500 yuan/ton. The anode market has recently seen an increase in inquiries for petroleum coke and graphitization, potentially boosting the raw material market in the future, which may then affect coated asphalt shipments.

5. Natural Graphite Anodes

The current natural graphite market, considering the current inventory levels, still shows ample supply. Environmental protection inspection teams in the Northeast region are gradually withdrawing, allowing production to resume. Compared to synthetic graphite, natural graphite has insufficient cost advantages and weaker competitiveness. Except for leading companies maintaining stable long-term order shipments, other natural graphite companies have low profits, opting either to switch to producing graphite crucibles and other refractory materials or to reduce their operating rates to maintain normal operations.

6. Synthetic Graphite Anodes

The anode material market continues to operate weakly and steadily, with the overall market starting up at a low level, and some small factories barely making profits, leading to poor production morale. The overall order volume in the market is declining, with most companies maintaining production based on sales and focusing on just-in-time procurement from the raw material market. Recently, some anode factories have gradually started inquiring about petroleum coke and graphitization purchases, which may positively influence the raw material market in the future. The overall situation in the graphitization market is not optimistic, with graphitization subcontractors in the Northwest region being largely shut down, leading to a severe overall excess capacity phenomenon. Insight into the upstream and downstream market of petroleum coke, continue to follow us.