SunSirs: China Refined Petroleum Coke Market Rose first and then Declined in December 2023

According to the Commodity Analysis System of SunSirs, the mainstream average price of petroleum coke products from major domestic refineries in December was 1,680.00 RMB/ton on December 1st, 1,720.00 RMB/ton on December 30th, with a monthly increase of 2.38%.

Cost side: In December, the international crude oil price trend fluctuated downward, geopolitical factors eased, and shipping in the Red Sea region resumed. As a result, international oil prices have fallen. Inflation pressure still exists, and crude oil demand is poor. Currently, the demand for oil products in Europe and America is in the off-season, which has suppressed crude oil prices. The results of the OPEC+ production policy meeting did not meet market expectations, and the reduction in production was less than expected; The voluntary nature of the reduction in production is questionable, and the supply side will face greater pressure in the future.

Supply side: In December, the import ships of petroleum coke concentrated at the port, causing the cost of sponge coke to be inverted. The shipping sentiment of traders was average, and the overall inventory of petroleum coke at the port increased. In the first half of December, the rainy and snowy weather in the north affected logistics, and the supply of ground refining medium sulfur petroleum coke was relatively tight. Downstream demand still existed, and the price of medium sulfur petroleum coke increased; In the second half of December, the shipment of medium sulfur petroleum coke was under pressure, and refineries lowered prices to ship.

On the demand side: The metal silicon market rose in December, and the basic situation of metal silicon in December was in a state of weak supply and demand. The supply side continued to contract, mainly due to the low inventory of silicon factories in Xinjiang due to environmental restrictions in the north; The Southwest region has officially entered the dry season, and the operating rate remains low. At present, the demand for purchasing petroleum coke from metallic silicon is still acceptable, supporting the petroleum coke market.

At present, the shipment of medium sulfur calcined coke is still acceptable, and the demand for carbon in the aluminum market is mainly in demand. The demand for negative electrode materials in the market is average, while the pre baked anode market is weak. Before the holiday, market transactions slightly rebounded, and enterprise inventories declined. Some medium sulfur calcined coke manufacturers slightly increased their prices.

The electrolytic aluminum market rose in December. In the short term, the supply of bauxite is relatively scarce. In addition, the heavy pollution weather range in the Beijing Tianjin Hebei and surrounding areas is from December 22, 2023 to January 4, 2024, and some areas may continue to support the cost of electrolytic aluminum due to weather difficulties and transportation difficulties, resulting in tight supply of goods. The overall market situation of carbon for aluminum is still good, and the purchase of petroleum coke is maintained as a mandatory requirement.

In the near future, the overall petroleum coke market in the local refining market has seen mixed ups and downs, with high sulfur coke prices rising and medium and low sulfur coke prices falling; It is expected that some downstream companies will restock after the holiday next week to support the price of locally refined petroleum coke. In addition, the low inventory of petroleum coke in refineries may lead to an increase in locally refined petroleum coke in the near future.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.