Recent pricing trends for calcined oil coke have been on the negative side. Despite the consistent increment in prices of the feedstock crude oil, pet coke prices declined due to sluggish demand for the product from the construction industry and higher inventory levels amongst traders. The low demand for petroleum coke has also resulted in the supply chain disruptions. Price volatility is expected to continue in the near term.
Calcined coke is the byproduct of coal-gasification. It's used to make alumina - an essential raw materials for aluminum smelting. During the forecast period, the global demand of calcined Petroleum Coke is expected increase due to the rising alumina use in applications like pedestrian bridges. Aluminum formwork, and aluminium furniture. The rapid urbanization and industrialization in the emerging economies of China, India, and South-East Asian countries will also boost the market for calcined petroleum coke in this region.
In Q3 2021, a rise in the crude oil price as a feedstock triggered a significant rise in the prices of calcined coke. A combination of a sluggish construction sector and high inventories at alumina refining plants led to a downward trend in the price of the commodity in the third quarter. The price of petroleum coke on the European market was also inflated by exorbitant freight costs across Europe-Asia, and Europe-US trade routes.
On the other hand, the Asian market witnessed a continuous rise in the price of calcined petroleum coke in the second half of FY21. Chinese prices for calcined oil coke rose 20% Ex-Shanghai in a single quarter, while Indians prices increased around 90% CFR Visakhapatnam.
The geopolitical situation of Venezuela affected the price. The conflict that erupted between the government of Venezuela and the opposition caused a decline in hydrocarbons. The shutdown of refineries on the Gulf Coast of the USA as a precautionary move due to the Ida hurricane caused a shortage of petcoke in the region.
During the first 2 months of Q4 2020, traders on the North American markets offered a negligible markup for their calcined coke products. The construction industry, which is a major user of the commodity, has continued to display sluggishness in demand. In addition, the Panama Canal drought has hampered the export of petrol coke. Consequently, the prices of the commodity declined in the US market. By November's end, 6.5% Sulphur Petroleum Coke was quoted with a 9.5% Discount to API coal FOB USGC. In mid-November the discount was reduced because coal prices had fallen. The discount continued in December to shrink as the price of coal dropped due to a government-sponsored intervention. This led gradually to a recovery in the prices for calcined coke. This trend is expected to continue well into the next calendar year.
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