Sanctions on Akkermann Cement and Akhangarancement Affect US Petroleum Coke Market
- 14-Apr-2023 5:58 PM
- Journalist: Bob Duffler
This week, the price of Petroleum Coke Fuel Grade 4.5% Sulphur FOB USGC in the USA increased by around 1.4%. At the same time, the price of Petroleum Coke Calcined Grade FOB USGC (USA) increased by around 0.3%. This week demand for the product increased from the cement industry while supplies were almost stable. The largest Petroleum Coke producing countries are the USA, China, India, and Russia.
Recently, on 12 April 2023, USM Holding and its subsidiaries Akkermann Cement in Russia and Akhangarancement in Uzbekistan were hit with sanctions by the US Department of State. Akkermann Cement is one of the largest cement producers in Russia, while Akhangarancement is the largest cement producer in the Republic of Uzbekistan.
The sanctions target Alisher Burhanovich Usmanov, the owner of the company, and his various business interests, including other USM companies in sectors such as iron, steel, copper, gold, telecommunications, and real estate. The US Department of the Treasury's Office of Foreign Assets Control has identified Usmanov as one of Russia's wealthiest billionaires, with significant holdings in the Russian Federation economy and internationally.
These sanctions are a response to the Russian invasion of Ukraine in February 2022. As per the sanctions, the companies on the list are prohibited from conducting business transactions with any US citizens. Akkermann Cement, which operates two cement plants and 12 terminals in Russia, acquired a majority stake in Akhangarancement in Uzbekistan in early 2022.
This sanction will affect the supply of cement as well as Petroleum Coke in the USA. As in the cement industry, Petroleum Coke can be used as a source of fuel and as a source of carbon for the production of cement clinker, which is a key component in cement production.
According to ChemAnalyst, the price of Petroleum Coke in the second half of April 2023 may increase due to the disturbed supply of Petroleum Coke in the USA and increased demand for the product in the Cement industry.
