Petroleum Coke Market Prices Continue to Rise, Tight Supply and Demand Drive Short-Term Fluctuation at Highs [SMM Analysis]

SMM, January 24:

In the petroleum coke market, downstream carbon enterprises actively stockpiled this week, with strong demand from anode material plants. Coupled with low refinery inventories and frequent refinery maintenance plans, petroleum coke prices continued to rise.

Specifically, petroleum coke prices at CNOOC refineries saw a wide increase this week, with adjustments ranging from 250-580 yuan/mt, and current quotations at 3,700-4,200 yuan/mt. PetroChina's northeast China refineries experienced low inventory levels and strong sales, with petroleum coke prices rising significantly by 550-850 yuan/mt, and current quotations at 4,060-4,550 yuan/mt. For Sinopec, refinery sales were strong during the week, with petroleum coke prices slightly adjusted upward by less than 100 yuan/mt. Additionally, local refineries also reported strong sales, with petroleum coke prices continuing to rise, mainly driven by reduced supply and increased downstream demand. As the Chinese New Year holiday approaches, downstream carbon enterprises actively stockpiled, further supporting price increases. Currently, the average price of petroleum coke at local refineries has reached approximately 2,110 yuan/mt, up 4.81% from last Friday.

In terms of supply, domestic petroleum coke supply tightened further, with the new maintenance at Xintai Petrochemical's southern plant increasing supply pressure. Meanwhile, PetroChina's Jinxi Petrochemical and Fushun Petrochemical, as well as CNOOC's Taizhou Petrochemical and Binzhou Petrochemical, also have maintenance plans, which will lead to a continued decline in the supply of low-sulphur petroleum coke in the future. On the demand side, as the Chinese New Year approaches, downstream stockpiling is nearly complete. The carbon used in aluminum production sector maintained a relatively high operating rate, while procurement in the anode material market temporarily slowed. The approaching holiday also impacted transportation to some extent, with downstream enterprises primarily consuming inventory, keeping demand stable.

Overall, the petroleum coke market is characterized by tight supply and rising demand, and prices are expected to remain at a relatively high level in the short term.