Mixed Sentiments of Petroleum Coke in Asian Markets
- 15-Jun-2022 5:40 PM
- Journalist: Motoki Sasaki
Petroleum Coke prices in the Chinese market started to drop due to decreasing demand in cement industry because of the poor performance of the construction activities across the country. The price of Pet Coke peaked during the first quarter of 2022 in China due to High demand for Petroleum Coke, and dealers raised prices in response to decreasing freight rates. Still, the country has been witnessing a steady fall in prices since May, and the dip is continuing in the first few weeks of June 2022. Due to different restrictions imposed due to the escalating number of Covid-19 cases, trading activity was minimal. The various lockdowns imposed by the Chinese Government to curb the resurgence of Covid 19 cases dulled the construction activities in China, leading to price drops in the domestic market. China buying upstream crude oil for a discounted price from Russia due to the European country's ban on Russian oil imports for Moscow's invasion of Ukraine abets the declining trend of Petroleum Coke in China. The rise in coal prices and growing discounts drove the demand for petroleum coke. Meanwhile, with more excellent supply, Petroleum Coke prices have stabilized at a significant discount to current levels, but demand is returning. Petroleum Coke's freight rates have weakened marginally but stabilized, putting it in the "very inexpensive" category.
Meanwhile, in the Indian market, according to various officials, the imports of Petroleum Coke will double from the previous years due to high demand from the competitive cement industries and drastically increasing demand from metal refineries. Usually, when the demand and price for energy sources like Petroleum coke rise exponentially, the energy is switched with an alternative. Still, under the current conditions, the coal price is also very high, making it difficult for Indian metal refineries and cement kilns to switch to alternate energy sources leading to rising Petroleum Coke prices in India.
According to ChemAnalyst, the price of Petroleum Coke in the Chinese market will rise once the country's market is thoroughly reviled from the lockdown restrictions. The rise won't be drastic since construction activities in the third quarter are likely to be dull due to monsoon seasons. Meanwhile, the Indian market for Petroleum Coke is expected to rise through the third quarter owing to the demand situation from Cement kilns and metal refineries.