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

Published: Feb 8, 2025 17:53

Save

[SMM Analysis: Tight Supply and Strong Demand Drive Post-Holiday Petroleum Coke Prices to Soar] 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 been "soaring," continuing their strong upward trend.

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.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

13 hours ago

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

13 hours ago

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

13 hours ago

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

13 hours ago