China's Petroleum Coke Imports Rebound in July 2026, Driven by Low-Sulfur Supplies and Higher Prices [SMM Analysis]

SMM News on August 26:

According to customs statistics, China’s total petroleum coke imports in July 2026 reached 1.4729 million mt, up 2.60% MoM and up 5.02% YoY. The average import price for the month was $300.98/mt, up 21.08% MoM and sharply up 48.49% YoY. From January to July, China’s cumulative petroleum coke imports totaled 9.5783 million mt, down 1.24% YoY.
  
In terms of imports, July extended the MoM rebound trend seen in June, staying above the 1.4 million mt threshold for two consecutive months. Compared with the interim low of 918,600 mt in May, July rebounded by 555,700 mt, a gain of 60.5%, indicating that the import pace had basically returned to the normal range starting in June. In terms of the average import price, July’s $300.98/mt was 21.75% higher than the H1 average of $247.22/mt, mainly driven by both a higher share of low-sulphur petroleum coke imports and constrained arrivals of low-priced, high-sulphur cargoes from the Middle East.
  
By origin, July imports were highly concentrated, with the US, Russia, and Brazil as the top three suppliers. Their respective import volumes were 399,000 mt, 323,100 mt, and 181,300 mt, accounting for 27.09%, 21.94%, and 12.31% of the month’s total imports, respectively. The origin mix of July imports changed significantly from June, showing a pattern of “declining shares for the US and Russia, low-sulphur supply filling the gap, and a break in Middle Eastern supply.”

Key points of the structural changes:
1. The US and Russia still ranked first and second, but their combined share fell to 49%. In June, the combined share of the US and Russia was 64%, dropping to 49.03% in July. US import volume fell from 541,800 mt to 399,000 mt (MoM -26.3%), while Russia declined from 375,100 mt to 323,100 mt (MoM -13.9%). The reduction in US Gulf cargoes was related to higher overseas market prices and traders’ cautious sign orders.
2. Brazil’s low-sulphur petroleum coke surged, rising to the third-largest origin. Brazil’s petroleum coke imports in July were 181,300 mt, up 65.1% from 109,800 mt in June, with an average price of $527.12/mt. The imports were mainly high-quality low-sulphur sponge coke, primarily supplied to the prebaked anode sector.
3. Canada and Argentina newly moved into the top ranks. Canada recorded 160,700 mt (average price $170.86/mt), mainly flowing to prebaked anodes; Argentina recorded 116,800 mt (average price $563.74/mt) of high-quality low-sulphur petroleum coke, mainly supplied to the prebaked anode and anode material sectors.
4. Middle Eastern supply diverged. Oman resumed arrivals at 80,000 mt after a two-month gap. Saudi Arabia’s 54,500 mt was basically flat versus June, but Kuwait and the UAE still had no cargo arrivals. The impact of disrupted shipping through the Strait of Hormuz had not been fully eliminated.
5. No arrivals from Trinidad and Tobago or Colombia. In June, they were 99,500 mt and 55,800 mt, respectively; in July, they exited the list of origin countries, reflecting adjustments in cargo flows from the Caribbean region.

In terms of the average import price, the July average of $300.98/mt not only surged 21.07% MoM, but was also 21.75% higher than the H1 average of $247.22/mt. This was mainly driven by two factors: first, a higher share of low-sulphur petroleum coke imports lifted the overall average price, with port arrivals of high-priced low-sulphur resources such as Brazil ($527.12/mt), Argentina ($563.74/mt), and Azerbaijan ($560.07/mt) increasing significantly; second, port arrivals of low-priced high-sulphur cargoes from the Middle East were constrained, weakening the “dilution effect” of high-sulphur resources.

From the product mix perspective, cumulative imports of low-sulphur petroleum coke (sulphur content <3%) from January to July 2026 totaled 2.6422 million mt, accounting for 27.6% of total imports, up by about 2.1 percentage points from 25.5% in the same period of 2025; high-sulphur petroleum coke (other uncalcined petroleum coke) totaled 6.9371 million mt, accounting for 72.4%. In July alone, imports of low-sulphur petroleum coke (sulphur content <3%) reached 535,700 mt, a new high for the year, up 49.3% MoM from June, accounting for 36.4% of total imports for the month, a sharp increase of 10.1 percentage points from 26.3% in July 2025. The continued rise in the share of low-sulphur petroleum coke (sulphur content <3%) reflects rigid demand support for high-quality low-sulphur cargoes from downstream prebaked anode and anode material sectors, while the share of high-sulphur petroleum coke imports passively declined due to constrained Middle Eastern supply and substitution effects.

Overall, China’s petroleum coke imports in July 2026 extended their rebound, staying above 1.4 million mt for two consecutive months. Monthly imports of low-sulphur petroleum coke hit a new high for the year, and the import supply structure improved significantly. Demand-side support remained solid: improving orders in the downstream anode material market boosted rigid demand for low-sulphur petroleum coke with steady growth; rigid demand in the carbon used in aluminum production market stayed stable, and overall petroleum coke consumption demand in China continued to improve. On the supply side, constrained port arrivals of low-priced high-sulphur cargoes from the Middle East and a higher share of low-sulphur petroleum coke imports drove the monthly average import price sharply higher MoM. After concentrated maintenance at domestic refineries in Q2 ended, operating rates gradually recovered in August, and growth in domestic petroleum coke supply partially substituted for imported cargoes. Looking ahead, with downstream rigid demand providing a floor in China, total imports are expected to stay high, and the share of low-sulphur petroleum coke imports may continue to rise. On pricing, tight supply of high-quality low-sulphur cargoes outside China will keep the average import price elevated in the short term.