SunSirs: China Refined Petroleum Coke Market Continues to Rise in July

According to the commodity analysis system of SunSirs, the market for locally refined petroleum coke continued to rise in July. The mainstream average price of petroleum coke products from major domestic refineries was 2,390 RMB/ton on July 31 and 2,257.50 RMB/ton on July 1, with a monthly increase of 5.87%.

Cost wise: The crude oil market fluctuated and rose in July. In mid to early July, OPEC+ released its annual world oil outlook and lowered its energy demand expectations, putting pressure on oil prices. In addition, the geopolitical situation in the Middle East has led to increased sanctions against Russia by the United States. Starting from August 1st, the United States will impose a 30% tariff on most imported goods from the European Union and Mexico, causing fluctuations in the international crude oil market; In late July, the United States and the European Union reached a new trade agreement, and the United States may impose new sanctions on Russia. Additionally, concerns about US tariffs continue to weaken, and crude oil prices continue to rise.

Supply side: In mid to early July, the shipment of petroleum coke from local refineries was still acceptable, and downstream demand for carbon for aluminum remained stable. The stocking operation of negative electrode materials was active, and coupled with low inventory of petroleum coke in some refineries, it was favorable for the petroleum coke market, resulting in an overall increase in petroleum coke prices; In late July, the market for refined petroleum coke remained stable, with decent shipments from refineries. However, prices of petroleum coke from some refineries fluctuated significantly with indicators, with fluctuations in prices; The demand from downstream enterprises is relatively stable, and the benchmark price for purchasing pre baked anodes in August has dropped by 10 RMB/ton compared to July, indicating average enthusiasm for purchasing petroleum coke. In July, the transaction of petroleum coke at the port was average, with stable shipments and sufficient inventory at the port. Downstream enterprises maintained their essential procurement needs.

On the demand side, the domestic silicon metal (#441) market experienced a broad upward trend in July. During the month, the market prices of metallic silicon (#441) in many regions of China have continuously adjusted upwards, and the overall focus of market negotiations has continued to rebound. This is also the first consecutive downturn in the market since the beginning of the year. Silicon companies in the northern region have reduced production of equipment, while the southern region has entered a period of abundant water. The overall pace of resuming production is normal, and market supply is decreasing in the north and increasing in the south, resulting in an overall increase in supply and output. The demand for petroleum coke market in the silicon industry still exists.

The overall price of medium sulfur calcined coke rose in July, with the calcination market remaining stable in mid to early July. In late July, the cost of petroleum coke prices rose overall, with some manufacturers adjusting their prices.

There is still purchasing demand downstream of petroleum coke to support the petroleum coke market in August, but refinery operations have increased compared to July. In addition, with the recent arrival of imported petroleum coke at the port, the market supply is relatively sufficient, and it is expected that petroleum coke will mainly fluctuate and consolidate in August.

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