SunSirs: Recent Weak Consolidation of China Local Refining Petroleum Coke Market

https://www.chemnet.com   Jun 25,2024 SunSirs

According to the Commodity Analysis System of SunSirs, the recent weak consolidation of refined petroleum coke prices has led to a slight decline. As of June 24th, the price of refined petroleum coke in the Shandong market was 1,482.75 RMB/ton, a decrease of 0.34% from 1,487.75 RMB/ton on June 17th.

Cost wise: Recently, the overall crude oil market has risen, and the tense geopolitical situation has resurfaced supply risks. The supply and demand situation is favorable for the oil market. In addition, with the continuous recovery of the Chinese economy and the peak oil consumption season in North America, multiple favorable factors support the upward trend of international oil prices.

Supply side: The recent weak consolidation of the local refining petroleum coke market has led to average transactions. In the early stage of maintenance, refineries have gradually resumed production, and the production of petroleum coke has increased. Recently, imported petroleum coke has continued to arrive at ports, leading to an increase in domestic petroleum coke supply and overall weak support for the petroleum coke market; The bidding price increased in July, and the price of Formosa Plastics petroleum coke continued to rise.

On the demand side: As of June 20th, there were 401 silicon metal furnaces in operation in China, with an overall start-up rate of 54.71%, an increase of 27 furnaces compared to last week. Sichuan and Yunnan have seen significant new construction, with over half of the construction in Southwest China. The supply increment continues to be released, while construction in Northwest China remains relatively stable. At present, the demand for purchasing petroleum coke from metallic silicon is still acceptable, supporting the petroleum coke market.

In recent times, the overall market for medium sulfur calcined coke has remained stable, while the upstream refining petroleum coke market is weak. Currently, most enterprises are selling at a stable price, while downstream enterprises are mainly wait-and-see.

The recent consolidation of aluminum prices is mainly due to the expected increase in quantity on the supply side; Due to the steady resumption of production by Yunnan aluminum enterprises, the domestic electrolytic aluminum production capacity is at a relatively high level, with a monthly month on month increase of 300,000 tons. On the other hand, on the demand side, there is a downward trend in the operating rate of aluminum rods. Coupled with market demand, there are not many new orders for photovoltaic modules and building profiles, which are lower than expected. Downstream aluminum carbon enterprises maintain a rigid demand for petroleum coke procurement.

As the end of the month approaches, downstream procurement is cautious, and coupled with the current sufficient supply of domestic petroleum coke, it is expected that the local refining petroleum coke market will mainly consolidate in the near future.

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