Supply Tightening and Strong Demand: Post-Holiday Petroleum Coke Prices Soar [SMM Analysis]

SMM, February 8: In the petroleum coke market, supported by the continuous tightening of domestic refinery supply and the active restocking demand from downstream enterprises after the Chinese New Year, petroleum coke prices have surged significantly, maintaining a strong upward trend. Specifically, CNOOC's refineries significantly raised petroleum coke prices this week. According to SMM, CNOOC's petroleum coke prices have climbed to 5,500 yuan/mt, with an increase of 1,400–1,800 yuan/mt compared to the previous bidding. PetroChina's refineries in north-east China, with low inventory levels and good sales, have also made substantial price adjustments. On February 8 alone, several enterprises raised prices by as much as 1,000 yuan/mt, with current quotations ranging from 4,150 to 5,800 yuan/mt. As for Sinopec, refinery sales were strong during the week, and petroleum coke prices were adjusted upward, with increases concentrated in the range of 100-300 yuan/mt. Additionally, local refineries also reported good sales, with petroleum coke prices continuing to rise. As of this Friday, the average price of petroleum coke from local refineries reached approximately 2,442 yuan/mt, marking a 15.7% increase compared to the Friday before the holiday. The strong domestic petroleum coke price surge has also driven up port prices. Imported petroleum coke sales were robust; however, according to SMM, most import traders are optimistic about future price trends and have chosen to halt sales, observing market dynamics. In terms of supply, domestic petroleum coke supply has further tightened. According to SMM, several enterprises in Shandong have implemented production cuts or even halted production due to equipment maintenance and profitability issues. Meanwhile, PetroChina's Jinxi Petrochemical and Fushun Petrochemical, as well as CNOOC's Taizhou Petrochemical and Binzhou Petrochemical, have all scheduled maintenance plans, which will undoubtedly lead to a continued reduction in the supply of low-sulphur petroleum coke in the future. To reduce production costs, most local refineries are producing petroleum coke with higher specifications, further tightening the supply of specification-compliant petroleum coke in the market. On the demand side, with the end of the Chinese New Year holiday, downstream enterprises have shown strong enthusiasm for post-holiday restocking. The carbon used in aluminum production industry has maintained a high operating rate, and the anode material market has also shown considerable purchasing activity, reflecting a thriving overall market demand. Recently, domestic petroleum coke supply has continued to tighten, while the ability of imported coke to supplement the market remains limited. In the short term, the tight market situation is unlikely to ease. Driven by active stockpiling and restocking by downstream enterprises, the petroleum coke market is expected to continue its upward trend.