Petroleum coke price exhibited firm sentiments in Asia backed by consistent demand pattern from cement industry. Moreover, lower availability and soaring freight cost on Europe-Asia and Europe-US interoceanic trade routes also contributed to the pricing trend in this region.
Prices of calcined and non-calcined Pet Coke continued to rise in Q4 2020. This was largely due to the limited availability from RIL’s coke gasification plant in India.
Petroleum coke is a final carbon-rich solid byproduct extracted from oil refining. It belongs to a group of fuels known as coke and is used as a feedstock in thermo-chemical production processes such as petrochemical production.
Metallurgical coke prices continued to fall on a CFR Europe basis, as a widening discount to API 4 coal and high freight rates on US Gulf Coast to main coke-buying markets weighed on trades. However, prices re- stood up on a CFR Asia basis as demand picked up from Asian steelmakers and cement manufacturers amid low supply in North America.
Non-calcined pet coke prices remained higher in Q4 2021, owing to consistent increases in feedstock crude oil costs. This boosted the upstream oil cost volatility and increased destocking by petcoke producers. These factors contributed to the price reversal on a CFR ARA basis in November. However, prices began to rise in December as winter energy consumption increased across Europe and Asia, pushing coal prices higher.
The Turkish coke market remains subdued. One cement plant is rumoured to be in the market for term supply amid a slowdown in construction activity ahead of presidential elections this June, with a weak economy also weighing on consumer demand.
In contrast, Indian high-sulphur coke demand has remained strong this week. Delivered prices have risen significantly over the past month, reflecting firm domestic coal prices.
Refineries around the Gulf Coast of the US are resuming output, although ExxonMobil’s 502,500-b/d refinery in Baton Rouge, Louisiana, will not restart its mid-sulphur coke unit until 2024 as it shifts from Venezuelan crude slate to heavy domestic crude.
Spot prices for 6.5% sulphur petroleum coke eased this week. Bids for a January-loading cargo were heard at $170/t on the west coast. This was far below the Argus USD-based pricing index. However, some sellers were willing to reduce offers. The market still had at least two uncontracted January-loading US cargoes, according to traders.
Petrol coke is a byproduct of oil refining used for fueling cement kilns. It can also be used to make graphite electrodes for aluminum production or burned as fuel in solid-fuel boilers at power plants. Demand for petroleum coke is increasing due to development in railways, highway construction, automobiles and transport sectors.
In 2022, prices for 6.5% sulphur pet coke assessed on a CFR ARA basis fell by more than 10%, as the market grappled with high inventory levels and weak demand from European mills. Prices regained some strength in December, as winter energy consumption drove up coal prices and boosted pet coke demand.
Venezuelan state firm PDVSA last month resumed sales of spot cargoes to Maroil Trading, the largest exporter of the oil byproduct, in order to avoid a complete halt to shipments amid contract negotiations, according to documents seen by Reuters. The sale included a cargo due to load later this month at Jose port in a shipment bound for Turkey, priced at a $15 per ton discount to the Argus 4.5% sulphur green pet coke price index.
Petroleum coke, also known as Petcoke is the final carbon rich solid material extracted during oil refining process. PET Coke is used in many applications including Calcining, Power Plants and Cement Kilns. It is a byproduct of crude oil cracking and can be found in two forms, Fuel Grade and Calcined Grade.
During the last week of November, 6.5 % sulphur Petcoke prices assessed on a CFR ARA basis fell by 6%. Traders said that the price decline was due to lower offtakes/inquiries in the market.
In the Asian market, prices for calcined and non-calcined Petcoke rose during Q4. The increase was mainly attributed to the rising coal prices, which forced cement and metallurgical buyers to turn to the alternative.
Moreover, the return of Venezuelan coke to the markets had added pressure on US and other high-sulphur coke sellers. The country’s upgrades of port facilities has allowed it to resume exports after a year-long pause, with most shipments landing in China.
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