Global Pet Coke Market Steer Prices Amidst Labor Costs and Crude Oil price Fluctuations
Global Pet Coke Market Steer Prices Amidst Labor Costs and Crude Oil price Fluctuations

Global Pet Coke Market Steer Prices Amidst Labor Costs and Crude Oil price Fluctuations

  • 17-Nov-2023 12:41 PM
  • Journalist: Francis Stokes

In the first week of November 2023, the US Petroleum Coke (Pet Coke) market underwent a marginal price increase, primarily driven by a surge in labour expenses and inflation in construction materials. These factors collectively contributed to substantial price hikes compared to the previous month. In response to the evolving market dynamics, domestic merchants displayed a proactive approach by actively restocking, anticipating potential shifts in demand conditions. The heightened demand from prospective customers, coupled with restricted stock availability to meet domestic requirements, further accentuated the surge in prices. The growth in employment within the construction sector during October played a pivotal role in boosting the overall demand for Pet Coke. This intricate interplay between labour costs, inflation, and increased demand shapes the current landscape of the US Pet Coke market.

Simultaneously, the European Pet Coke market experienced an increase in prices during the same week due to the expensive import of the Pet Coke from overseas, particularly the USA, where the price increased by around 0.5%. The rise in price was also attributed to a slight recovery in the downstream construction industry, coupled with stable supply in the country. Additionally, the price of feedstock Crude Oil decreased by around 3.3% during the same period. The overall manufacturing sector faced challenges, with new orders, purchasing activity, and backlogs experiencing significant and rapid contraction, marking one of the most substantial contractions in new orders in October.

Conversely, the Chinese Pet Coke market encountered a downturn during the week, attributed to the recent turbulence in the global crude oil market. The weakness in local Pet Coke prices was evident, especially in the initial days after a two-day holiday period. Merchants, under pressure to expedite deliveries, opted to cut prices to stimulate volume. The impact of the weakened external market during the holiday period further influenced the spot side, aligning with the downward trend. As the month progressed, the market continued its descent, highlighting challenges and fluctuations within the Pet Coke sector in China. Supply, demand, and external market forces played a significant role in shaping the trajectory of prices throughout the month.

In the past week, the petroleum industry witnessed a notable trend in Pet Coke imports at the port. October saw a relative decrease in the number of incoming ships carrying Pet Coke, prompting import traders to primarily fulfil early orders. This slowdown in port shipments led to a slight reduction in the availability of Pet Coke at the port. Meanwhile, local refineries' production of Pet Coke experienced pricing fluctuations influenced by limited downstream demand and tepid enthusiasm for hoarding. Refinery shipments faced pressures, resulting in a generally light trading volume. The dynamics in the Pet Coke sector suggest a complex interplay of factors, including global trade patterns, downstream market demands, and local refinery conditions, all contributing to the disturbed landscape observed in the past week.

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