Pet Coke Prices Come Under Distress After European Union's Ban on Petrochemical from Russia
- 09-Feb-2023 5:35 PM
- Journalist: Gabreilla Figueroa
The price of Pet Coke in the global market observed mixed sentiments during January 2023. The product price increased in Asia, such as 7% in China and South Korea, whereas in European markets like Germany, the prices rose marginally by around 0.5%, while USA Pet Coke prices were stable during the first week of February 2023.
In Russia, Pet Coke prices decreased by around 2% in January 2023 as the imports from the European Union declined during this month. Consequently, the pet coke market in Russia shrank rapidly during this month.
In Germany, the price growth of Pet Coke was marginal as buyers from China and India were on hold, and traders were not negotiating on spot purchases. The demand from the downstream construction sector increased in January as the German construction PMI increased in January of 2023 compared to December 2022. However, discounts from Russia were still in place for countries that had not sanctioned Russian gas supplies (China, India, and Turkey). Therefore, this energy price trend also impacted the Pet Coke price in Europe.
In the USA, prices remain unchanged at USD 126/MT for Pet Coke Fuel Grade 4.5% Sulphur FOB USGC, a lack of trades in the past few. Another major driver was Freight rates from the USA coast to other main coke-buying countries fell during the first month of 2023, but on the other side, the USA market witnessed positive demand from the domestic construction sector.
In China and South Korea, prices for the product increased post-Lunar New Year festival under the influence of a sudden increase in demand for Pet Coke in the first week of February 2023. This year laborers appeared around a week earlier than normal. Migrant workers from rural areas and small towns traditionally return to major cities after the CNY Festivals, which falls on 28 January this year.
According to ChemAnalyst, the Pet Coke price may increase in upcoming weeks as The National Development and Reform Commission in China said that the country will allocate new funding under the central government's budget after the Spring Festival holidays to support the construction of key basic infrastructure projects. Furthermore, in Europe, prices of Pet Coke may increase. However, in Russia, prices may decrease as from 5 February 2023, Europe no longer imports petroleum derivatives, such as diesel and kerosene, from Russia because the European Union has completely banned Petroleum products from Russia across Europe.