Petroleum Coke Prices in the US increase on the back of rising International Demand
- 06-Apr-2022 5:32 PM
- Journalist: Henry Locke
Petroleum coke (Pet coke) prices in the US have been on the rise due to high demand domestically from the downstream cement industry and export demand from various regions across the globe (Latin America, Europe, and south-east Asia). The demand for pet coke from the European countries was comparatively low because of production halts at various cement kilns, owing to the energy crisis caused by the ban on Russian oil by many EU nations. The Chinese and Indian markets too have contributed to the high demand from overseas market for US Pet Coke as the period post the lunar new year holidays saw a recovery in demand from the construction sector.
Crude Oil prices reached their highest value since the June of 2008 in the first week of March period when the US and UK sought a ban on Oil and Gas imports from Russia as a retaliatory measure. The inventories of crude oil in the US are in a multiyear low and limited supply from OPEC countries abetted the price rise of upstream crude oil prices as well. The Iran-US nuclear deal is likely to deepen the existing oil supply crisis. OPEC countries decreased development investment and cautious approach to the global market indicates that those countries are not able to pump the oil enough to meet the demand of the global market.
According to ChemAnalyst, the Pet coke prices in the US may remain stable without a lot of fluctuation because even when export demand from the United States may cool down, the European cement industries will return to their total capacity increasing the market for pet coke. The demand from Latin America is also likely to remain stable, leading to a steady or slightly rising price trend for Pet Coke in the US.