SunSirs China Local Refining Petroleum Coke Market slightly Increased Last Week

According to the Commodity Analysis System of SunSirs, the price of locally refined petroleum coke increased slightly last week. As of February 29th, the price of locally refined petroleum coke in the Shandong market was 1,682.50 RMB/ton, an increase of 0.75% from February 26th at 1,670.00 RMB/ton.

Cost side: The international crude oil market has been fluctuating in recent times, with a significant increase in crude oil prices during the Spring Festival. After the holiday, the crude oil market is mainly fluctuating in the range. On the one hand, the tense geopolitical situation in the Middle East remains the main driving factor for the crude oil market; In addition, the expected reduction in production by oil producing countries is also a major factor supporting oil prices. On the other hand, the Federal Reserve has issued hawkish signals, delaying interest rate cuts and suppressing market confidence; The total number of oil and natural gas drilling rigs of state-owned energy enterprises has increased to the highest level since August 2023, and crude oil prices have been suppressed.

Supply side: Last week, the price of petroleum coke fluctuated, and downstream demand procurement supported the price of petroleum coke; The shipment of imported sponge coke is stable, and traders mainly execute orders.

On the demand side: As of February 22, China has started operating 308 silicon metal furnaces, with an overall furnace opening rate of 41.1%, an increase of 1 furnace compared to last week. Last week, the situation of industrial silicon furnace opening stabilized, and the market was still in the post holiday recovery period. Enterprises started production basically according to the pre holiday scale, and the number of starts will gradually increase. This week's supply is expected to increase. At present, the demand for purchasing petroleum coke from metallic silicon is still acceptable, supporting the petroleum coke market.

Last week, medium sulfur calcined coke remained stable, with average transactions. Downstream demand release was relatively slow, and the operation of the calcined coke market was cautious.

Last week, aluminum prices slightly increased, and the traditional peak consumption season is approaching. Downstream demand may gradually recover, and the production capacity and operating rate of China's leading aluminum downstream industry enterprises are expected to rise. Downstream aluminum carbon enterprises still have a demand for petroleum coke, and multi-dimensional support is needed for procurement.

Market forecast: In March, the coking plant in the refinery will enter the peak maintenance season, and the supply of petroleum coke from local refineries may decrease; But currently, downstream demand is limited, and the market maintains a focus on essential procurement; In addition, the continuous arrival of imported petroleum coke at the port may increase the storage of petroleum coke in the port. Overall, it is expected that the price of locally refined petroleum coke will slightly increase in the near future.

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