Petroleum coke market overview

Market Overview

The trading in the petroleum coke market this month was generally mediocre, and the coke prices were running weakly. In May, some delayed coking units that had been shut down for maintenance earlier resumed production and discharged coke, leading to an increase in the supply of domestic petroleum coke. Coupled with the increase in imported coke arrivals at ports, the overall market supply was sufficient. However, the demand in the downstream carbon market was mediocre, and the wait-and-see sentiment among enterprises prevailed. With insufficient positive support from both the supply and demand sides, the market coke prices fluctuated downward.

Supply Side

The overall supply of domestic petroleum coke in May is expected to increase slightly compared to April. In May, some coking units of major refineries that had been shut down for maintenance earlier resumed production and discharged coke, resulting in an increase in market supply. The coking units of local refineries had a mix of startups and shutdowns, and some local refineries reduced their production loads. As of May 30, there were 28 instances of coking units in the country that were shut down for maintenance. The daily output of petroleum coke in the country was 79,630 tons, and the coking operating rate was 61.74%, an increase of 2.51% compared to the previous month. In May, 4 new coking units were shut down for maintenance, involving a reduction in daily output of about 3,400 tons. Another 8 coking units started production and discharged coke, involving an increase in daily output of about 5,900 tons.

Demand Side

The start-up of leading enterprises in the pre-baked anode sector this month was stable, with good production enthusiasm. The enterprises had saturated orders, and the demand for petroleum coke was stable. The operating rate in the calcined coke market was 56.5%, a decrease of 0.89% compared to the same period of the previous month. It was difficult for calcined coke enterprises to ship goods. The overall inventory in the calcined coke market was at a high level. Some enterprises still maintained minimum production loads, and their enthusiasm for purchasing petroleum coke was average. The operating rate in the negative electrode material market was 50.66%, a decrease of 3.08% compared to the previous month. The orders in the negative electrode market were weak. Enterprises mainly consumed the raw material inventories from the previous period, and the demand for raw material petroleum coke was weakly stable. The losses of graphite electrode enterprises intensified. Some enterprises had production reduction plans. Currently, most enterprises in the market were mainly executing previous orders, with low production enthusiasm, and the demand for raw material petroleum coke was weak. The market conditions in the downstream metal silicon and silicon carbide sectors were weak, and the trading atmosphere was dull. The demand for petroleum coke fluctuated little.

Overall Next month, the increase in the supply of domestic petroleum coke will be limited, and the import volume will decrease. The production and demand of the main downstream sectors will be stable, and replenishment will be carried out according to the situation. The positive support from both the supply and demand sides will be average. Therefore, Baichuan Yingfu expects the price of petroleum coke to be weakly stable and bottom out next month.