Petroleum Coke Prices Decline Amidst Strong Supply and Low Demand in the US Market

The price of the Petroleum Coke Calcined Grade FOB USGC declined by around 1% in the US market, while the price of Petroleum Coke Fuel Grade 4.5% Sulphur FOB USGC declined by approximately 4% during this week due to the declined price of feedstock Crude Oil, which fell by around 5% in the US market. The demand for the product in the market was low to moderate as the construction sector was trying to improve, but due to a lack of labor in the country or labor shortage, the construction sector remains down this week too. However, the supply of Petroleum Coke in the country was high, and there was ample availability of products to satisfy all the national and international markets. The main reason behind the strong supply of products in the USA was the declined prices of feedstock Crude Oil as cheaper raw materials helped manufacturers to reduce their costs, increase demand for their products, and improve their financial position, all of which helped in destocking their products which further strengthened the supply for the product.

One of the largest refineries in Los Angeles, Marathon Petroleum refinery, faced a gas leak incident resulting in four employees being taken to local medical facilities for evaluation after exposure to a release at its refinery, in California. The refinery produces both fuel-grade and calcined Petroleum Coke, which are used in industrial processes such as the production of aluminium, steel, and fuel. Despite this temporary shutdown due to the incident, Petroleum Coke prices declined as there was a high supply in the market.

According to ChemAnalyst, the price of Petroleum Coke may decline further in the first half of May 2023, as the price of Crude Oil and Coal is expected to decrease during this period. Furthermore, it is also anticipated that demand for Petroleum Coke may remain low during this period from the downstream construction sector.