During the past few years, the US Gulf calcined petroleum coke prices have continued to hold their high levels and this trend is expected to continue. However, the Chinese CPC prices have started to tipped lower. Moreover, the Asia-Pacific region is expected to hold a substantial share in the global calcined petroleum coke market.
Despite the headline grabbing price spikes, the Chinese calcined pet coke market has actually seen an overall decline in Q4. During Q4 CPC prices declined by an average of $15 per metric tonne, compared to $28 per metric tonne in Q3. Although a majority of the market still operates under the supervision of the state-owned Chinese National Oil Company (State Oil), a number of apex calciners and downstream refiners have thrown in the towel.
This is hardly surprising, given that China remains the world's largest consumer of petroleum coke. The Chinese government recently loosened its restrictions on power prices for energy-intensive industries, incentivizing firms to use coke more extensively. This in turn has helped drive up prices on the world's largest import-export market.
Despite the skepticism surrounding the price spikes, a number of companies have confirmed the existence of contracts worth more than $200 per metric tonne, although the number of deals negotiated is still minuscule compared to the dozens in Q4. As a result, calcined pet coke prices are now trading around the $500 per metric tonne mark, compared to a record high of $700 per metric tonne in Q2.
The Chinese calcined pet coke market certainly deserves its share of the credit, but with its soaring adulation, it is difficult to believe that the nation will continue to outpace the global market in the years to come. Nonetheless, the market is likely to remain tightly constrained in the New Year.
Despite the fact that US Gulf calcined petroleum coke prices are holding well above previous record highs, it is important to keep in mind that the market is not a competitive one. This is due to several factors.
First, the market is dominated by the power industry. This is due to the fact that it is used in the manufacture of electrodes for electric arc furnaces. It is also controlled by the constructing industry. In addition, the environment is affected by the production of harmful gases such as sulfur and nitrogen.
The second factor affecting the market is the availability of light sweet crude oil. A number of refineries have been forced to cut their run rates due to the fall in gasoline consumption. Some of these refineries have also been forced to import cheaper heavy crude oil from countries such as Canada and the Permian Basin in Texas. This may impact the supply of petcoke.
Several industry verticals, such as cement, power generation and steel, are driving global petroleum coke demand. The advent of advanced technologies and fuel grade coke is also contributing to the growth of the global petroleum coke market. Moreover, the increasing demand for heavy oils in the APAC region will boost the market.
One of the largest producers of petroleum coke in the world is Chevron Corporation. Other major players in the petroleum coke market are ExxonMobil, British Petroleum and Valero Energy Corporation. A comprehensive analysis of the competitive landscape is also provided in the Global Petroleum Coke Market report. This section also includes a market ranking analysis of the top players globally.
The biggest market share of the Global Petroleum Coke Market belongs to the Asia Pacific region. This region is expected to maintain its position as the largest regional market in the near future. Moreover, the rapid expansion of steel production has complemented the growth of the petroleum coke market.
Currently, Asia-Pacific accounts for the largest share of the global calcined petroleum coke market. This region has been driven by the increasing construction activities and population growth in countries such as China. The market is also expected to witness robust growth in the coming years.
The growth of this market is expected to be driven by rising industrialization, increasing construction expenditure and government initiatives in the countries of Asia Pacific. APAC is expected to hold a major share of the global calcined petroleum petcoke market in the near future.
The major industry players have been aiming to increase their global presence. They are also planning to increase their production capacities. This is expected to give them an opportunity to enter into long-term partnerships with direct end users.
The global market for calcined petroleum coke is expected to be driven by increasing usage of petroleum coke in power generation and cement industries. The growth of the power generation industry is expected to drive the market in developing countries.
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