European Pet Coke Prices Fall Amid Increased Supply, Stability Observed in US and Chinese Markets
- 25-Oct-2023 3:00 PM
- Journalist: Patrick Knight
In the European market, the price of Petroleum Coke (Pet Coke) experienced a decrease of approximately 0.7% during the third week of October 2023. This decline was primarily driven by an increase in the supply of Pet Coke, resulting in a notable drop in its price. The significant price reduction brought Pet Coke closer in cost to coal, leading to a shift in favor of coal usage. Freight rates also played a role in pushing down the prices of both Pet Coke and coal. Notably, the Free on Board (FOB) discount for Pet Coke saw a substantial increase, expected to attract new buyers and potentially reshape the market dynamics. During the same week, the European market witnessed a decrease of approximately 3.4% in the price of feedstock crude oil. This reduction in crude oil prices positively impacted the production cost of various products reliant on crude oil as a key component. The lower cost of feedstock crude oil holds the potential for cost savings across industries that heavily depend on this essential raw material. These Pet Coke and crude oil market developments have significant implications for the European energy and petrochemical sectors, influencing market dynamics and industry trends.
In the US market, the price of Pet Coke remained stable during the week, primarily due to steady demand from the downstream construction industry. This demand balanced against a moderate supply of Pet Coke within the country, resulting in price stability. Furthermore, the price of feedstock crude oil decreased by approximately 3.4%, playing a supporting role in maintaining the price trend for Pet Coke. The reduction in the cost of the primary raw material helped mitigate potential upward pressure on Pet Coke prices, offering relief to industry participants.
The week observed a stabilization of prices in the Chinese Pet Coke market. This stability was achieved through a delicate balance between supply and demand. Following an extended holiday period, the domestic market managed to maintain equilibrium. The stability in the market could be attributed to the decrease in international oil prices and the relatively modest demand within the downstream construction industry. Prices consistently reflected this stability throughout the week, aligning with the overall market sentiment. Trading activity remained relatively average, with downstream buyers displaying caution in purchasing behavior, mainly focusing on managing existing inventory. Meanwhile, upstream inventory consumption proceeded moderately, with industry participants strategizing ways to boost sales amid the prevailing market conditions.