Global Pet Coke Prices Gain Stability in Live With Rising Coal Prices
- 27-Dec-2022 7:45 PM
- Journalist: Patricia Jose Perez
Pet Coke prices in the global markets have started to stabilize due to reduction discounts given to Pet Coke cargoes. Alternate energy source Coal prices have been rising due to various supply disruptions and increasingly colder weather conditions in European countries. The price of Russian coal is still imposed, but the decline in discounts reflects the rising costs from the Russian producers. So, this rise in coal prices has forced Pet Coke manufacturers to reduce the discounts on their commodities due to the improving buying sentiments in the global market. The wait-and-see approach taken by Indian and Chinese buyers is abetting the stable price trend of Pet Coke in India and China, respectively.
With the drop in coal prices, the price of Pet coke has returned to equilibrium and is now constant in US dollars as demand wanes. It is still the least expensive fuel. Venezuelan goods have been spotted in several locations, which has lowered prices for the mid-sulfur range. Buyers are holding back as long as the cost of coal is decreasing at the present rate. Some goods do not reach the export ports due to the Mississippi River's low water levels. Pet coke prices will be checked by market trends, notably Russian discounts for Turkey, India, and China's refusal to impose sanctions on Russia. A low Purchasing Manager's Index (PMI) could jeopardize the world's need for downstream cement, but the Petcoke market is anticipated to remain stable.
According to ChemAnalyst, Pet Coke prices are expected to remain stable due to the falling prices of upstream crude oil caused by the fear of a new Chinese lockdown and poor demand conditions in many Asian countries. The rising covid cases globally will likely weaken the downstream construction sector and ease Pet Coke costs in various markets in the upcoming months.