SunSirs: Weak Demand for Refined Petroleum Cokes in October

According to the Commodity Analysis System of SunSirs, the mainstream average price of petroleum coke products from major domestic refiners in October was 1,800.00 RMB/ton on October 1st, 1,747.00 RMB/ton on October 30th, a monthly decrease of 2.92%.

Cost side: Limited cost support for petroleum coke under crude oil fluctuations

The crude oil market continued to fluctuate in October. At the beginning of the month, the situation on the mainland is volatile, and oil prices may intensify volatility, with an increase in amplitude. The mid-term supply-demand game will continue, with tight supply and slowing demand remaining the main themes of oil price trading. The weekly inventory report released by the US Energy Information Administration (EIA) in mid month showed that US crude oil inventories unexpectedly dropped significantly last week, with a more than expected decrease. Coupled with tensions in the Middle East, this has brought a bullish trend to the crude oil market, with prices hitting nearly two week highs. With the strengthening of diplomatic efforts and the easing of tensions between Palestine and Israel, the market has shown some optimism about supply restrictions, and the oil market has come under pressure and declined. Overall, crude oil prices are still at a high level.

Supply side: High inventory in the port and sufficient supply of refined petroleum coke

In October, there were relatively few oil coke import ships arriving at the port, and import traders mainly executed early orders. The speed of port shipment slowed down, and the storage of oil coke in the port decreased slightly. The price of petroleum coke produced by local refineries has fluctuated, with limited downstream demand and average hoarding enthusiasm. Refinery shipments are under pressure, and trading volume is light.

On the demand side: The operating rate of metal silicon increases, and the overall market situation of aluminum and carbon is weak

The international crude oil market has been fluctuating and declining recently, with limited support for the petroleum coke market. In addition, downstream demand is weak, and overall on-demand procurement is the main focus. It is expected that the refining of petroleum coke in the near future may be dominated by weak consolidation.

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