For the Quarter Ending June 2022
North America
The Petroleum Coke (PET Coke) price constantly decreased in the United States of America during the second quarter after April 2022. The price during the end of Q2 2022 of PET Coke in the American market was around USD 379/MT Petroleum Coke Calcined Grade FOB USGC. The price hiked during April's supply disruption because of the ongoing war between Russia and Ukraine. The cost of rising alternate fuel coal was costlier due to the ban on Russian coal, which allowed the price of Pet Coke to grow. Post-April, the increased refinery run rates to export Natural gas to European countries increased the byproduct of PET Coke products and abetted the declining trend of PET Coke price in America during Q2 2022.
APAC
The Petroleum Coke price in the Chinese market witnessed a steady decline throughout the second quarter of 2022. The primary reason behind the declining cost of PET Coke in the country was the cheap supply of upstream crude oil from Russia. Due to the ban imposed by western countries (the US and several western European countries) on importing Russian crude. Russia had to find alternate importers for its oil, and China is among its new major importer. In the Indian market, PET Coke prices start decreasing mainly post-April due to poor demand from the downstream cement industry due to poor construction activities during the onset of monsoon season. At the end of Q2, 2022, the prices were recorded at INR 30980/MT and USD 540/MT in the Indian and Chinese markets, respectively.
Europe
The European market had a similar price trend for Petroleum Coke (PET Coke) to that of the American market during the Second quarter of 2022. The supply disruption caused by the conflict between Russia and Ukraine raised the prices of PET Coke in Europe in April 2022, but as buyers backed off due to the soaring cost in the domestic market, the price trend started to turn around. High energy prices in the continent and costly construction materials in Europe affected the construction activities in the region. The dampened construction activity brought down the demand for downstream cement, ultimately driving the price of PET Coke in Europe post-April 2022. The price of PET Coke in the German market during the beginning of the second quarter was recorded at around USD 815/MT.
For Quarter Ending March 2022
North America
The price trend of pet coke in the American market for the first quarter of 2022 traded around USD 736/MT during Q1 of 2022. The rise of the prices can be traced to the ban on Russian oil by the US and EU. Unlike Europe, the United States do not depend on Russia for their oil. However, the increased demand for Pet coke in Europe puts pressure on American exports and contributing to the increase in price of pet coke in America. The nuclear deal with Iran deepened the limitation of upstream crude oil supply to America from the OPEC countries which led to rising price of PET coke in the American market during Q1 of 2022.
Asia
In the Asian market, Pet coke witnessed an upward trend during the first quarter of 2022. Various Chinese industries switched to Pet Coke as a feedstock since the alternate feedstock coal prices were very high leading to the demand and price rise of Pet coke. In China Pet coke was traded at USD 679 /MT during Q1 of 2022. In the Indian Market the price of Pet Coke was rising steadily throughout the first quarter of 2022 due to increased production of downstream aluminum industry owing to the demand from the electronic sector. The high price of upstream crude oil in the Asian market in general led to higher pet coke prices across the Asian market during the first quarter.
Europe
All crude oil and its derivative product’s prices in Europe have been increasing due to high dependency of Russian oil on various European countries. So due to the high upstream crude price and disrupted production on account of the energy crisis in various refineries affected the availability of pet coke in Europe during the first quarter of 2022. The demand from the downstream cement industries were rising during Q1 in Europe owing to well performing home improvement sector in Europe. The OPEC countries were not taking any effort to meet the European oil needs, abetting to higher pet coke prices in Europe during 2022’s first quarter. USD 715/MT was the price of pet coke in the European market during the end of Q1 of 2022.
For the Quarter Ending December 2021
North America
Demand for Petroleum coke had seen a surge in the second half of FY21 owing to a shortage in supplies of Coal in Asia which led to an increase in export prices of coal. The discount of petroleum coke to coal had however began narrowing down by mid-November as the coal prices started to lower in China, thanks to a government intervention. The November end prices of 6.5% Sulphur Petroleum Coke were being quoted at a discount of 9.5% to API4 coal down from 37% in October on an FOB USGC basis. The prices however rebounded in the month of December as winter demand for energy is usually higher in North America and Europe which causes energy prices to increase.
The outlook for Q1 of FY22 remains optimistic as the winter demand for coal is likely to increase the premium at which it is sold to petroleum coke thus spurring demand.
Asia
The Asian petroleum coke market had seen a continuous rise in prices for the entire second half of FY21 with Chinese prices of calcined coke increasing by 20% Ex-Shanghai on a quarterly basis from Q3 to Q4 of FY21. India too followed a similar trend with prices of calcined coke increasing by almost 90% from Q3 (calendar year) to Q4 (calendar year) assessed on a CFR Visakhapatnam basis. Prices of Non-Calcined petroleum coke too had witnessed a surge with average prices quoted 120% higher than the previous quarter. This sharp hike in prices was due to the impending coal crisis that was ubiquitous throughout China and South Asia for the most part of Q4 forcing cement and metallurgical industries to opt for petroleum coke as an alternative.
The trend for the next quarter is likely to remain the same as there had been no signs yet of prices mellowing down across Asian markets.
Europe
European petroleum coke market too had seen a gradual waning of the discount to API2 coal by November’s end as the discount of petroleum coke on a CFR ARA basis narrowed to 9.5% from 15% in October. The prices of 6.5% Sulphur petroleum coke assessed on a CFR ARA basis decreased by 6% over the last week of November and stood at 176 USD/Mt. The reversal in trend was however short lived as prices started to increase from the second week of December as energy demand rises in Europe during the peak winter season thus causing the prices of coal to increase. Petroleum coke becomes the preferred substitute when the discount to coal is higher than 15% in the European region.
The outlook for Q1 of FY22 is likely to reflect the market sentiments of North America which is the main source of Europe’s imports for petroleum coke.
For the Quarter Ending September 2021
North America
In the third quarter of 2021, Petroleum Coke experienced an uptrend in its prices backed by the volatility in the prices of upstream crude oil. Moreover, in August end, most of the oil and gas refineries along the Gulf Coast of USA shut down their plants ahead of hurricane Ida as a part of contingency plan which directly pushed the prices of Petroleum Coke in Q3. Besides, several refineries curtailed their production supported by the reduced consumption of jet fuels owing to covid pandemic situation. In addition, Soaring freight cost and supply chain disruption caused by Ida hurricane exacerbated the crises, causing an unprecedented rise in prices. Thus, FOB-US monthly average prices of Petroleum Coke were accessed at USD 515/MT in September witnessed a hike of USD 45/MT since July.
Asia
In Asia, Pet Coke market reported mixed sentiments in the third quarter of 2021. At the beginning of the quarter, prices of Petroleum Coke dropped due to the rise in the production rates and improvement in the import activities. However, in the later half of the quarter, an unprecedented rise in the values of Pet Coke was observed backed by several factors including the arrival of hurricane Ida in US Gulf Coast and the congestion on the several ports in China. In India, due to the supply chain disruption caused by Ida hurricane and congestion on China ports led to the supply shortage of the product that consequently fumed the prices of Pet Coke in Indian market. Thus, in India, the price of Pet Coke stood at USD 188.36/MT in September showcasing a marginal increment of USD 22.41/MT since July.
Europe
In Q3 2021, European market outlook witnessed an upward trajectory in the pricing of Petroleum coke backed by the low production rates and the robust demand from the downstream manufacturers. In addition, the rise in the prices of feedstock crude oil and the excessive freight charges across the Europe-Asia and Europe-US interoceanic trade routes contributed to the inflation in the pricing trend of Petroleum Coke in Europe. Due to the impact of Ida hurricane, the crude oil production had struggled to recover during this timeframe that led to the scarcity of Pet Coke in the regional market as Europe imports most of the Pet Coke from USA. CFR Hamburg Pet Coke prices stood at USD 504/MT in September observed a hike of USD 49/MT since July.
For the Quarter Ending June 2021
North America
Petroleum Coke prices followed an upward rally this quarter again, backed by recovering demand and consistent supply tightness across the region. Continuous price increment in price was observed in USA due to lower availability against firm demand pattern. Winter devastation during February and soaring freight cost also exacerbated the crises, causing an unprecedented rise in prices. Downstream producers were heard opting for cheaper alternatives than Pet Coke, however USA export to Brazil remained high in the meantime. Therefore, prices of Pet Coke were accessed at USD 430/MT for calcined grade in USA during final week of June.
Asia
Asian market witnessed bearish offtakes for Pet Coke during this quarter, due to overall market dullness amid infirm demand and adequate availability. In China, prices of Pet Coke followed a downward trajectory in mid-May. On the other hand, in India, prices of Pet Coke fell sharply till the May end, and later rebounded effectively in June. This price fall was supported by significant fall in demand from cement manufacturers amid resurgence of the pandemic in the country. In addition, due to huge rise in USA Pet Coke prices, Asian manufacturer were heard switching to cheaper alternatives from Australia. Thus, the price of Pet Coke hovered around USD 220/MT for Non-Calcined Pet Coke in India during June end.
Europe
Firm sentiments for Pet Coke were observed in the European market, supported by modest to firm demand from downstream manufacturers. Amidst stable demand scenario after sufficient economic recovery from the pandemic, supply remained tight for Pet Coke in the regional market. While imports from USA were very expensive in the meantime due to soaring freight cost and congestion across major trade routes. Therefore, overall hike in price of Pet Coke observed during Q2 2021.
For the Quarter Ending March 2021
North America
North American winter storm affectively chocked the production of Petroleum Coke across the region as manufacturers faced various hurdles in operating their plants in such weather conditions. Thus, the winter storm led several plants or refineries to kneel down and settle the production to almost zero. It was estimated that, due to the storm more than 50,000 tonnes of production got hampered which supported its prices rigorously, and the prices rose from USD 205 (January 2021) to USD 220 per MT (March 2021). Till March end positive optimism started hovering with restart of several plants across the region.
Asia
In the Asian market, Pet Coke prices as well as the demand varied across different countries, as in India demand for Petroleum Coke was deemed high, on the other hand, in China, it remained low. In Chinese market, demand for Petroleum Coke remained low from the steel manufacturing sector, and amid stable supply, prices dropped effectively, in the quarter Q1 2021. Meanwhile in India, high demand from cement manufacturing sector supported the prices of Petroleum Coke throughout the quarter, which affected the retail cement prices in India. Several Petroleum Coke giants increased their prices e.g., RIL (Reliance Industries Ltd) increased its Petroleum Prices roughly from around USD 125 per MT to USD 150 per MT within the quarter.
Europe
The European market witnessed a boom in exports for Petroleum Coke, especially from Asia. As the North America region remained chocked in terms of production as well in exports due to the freezing storm, meanwhile Europe fetched the opportunity to grab its market for this quarter. However, Suez Canal crisis during March end, temporarily hampered the exports. Before this crisis, container shortages were already in existence but during Suez Canal crisis, freight charges also increased effectively.
For the Quarter Ending December 2020
Asia
Demand for Petroleum Coke in the Asian market exhibited strong growth in Q4 2020 compared to Q3 2020. The demand has increased from cement industry due to ongoing construction activities in South East Asia especially China, Vietnam and India. The prices of calcined and non-calcined Petroleum Coke were traded at 200-240 USD/MT and 62-76 USD/MT depending on the quantity and proximity from the import location. The market sentiments have improved in Q4 2020, owing to increase in construction activities and rising demand from steel, cement and aluminium Industry. The prices of Petroleum Coke are anticipated to remain stable in Q1 2021 due to balance in demand and supply scenario.
Europe
Demand for Petroleum Coke in the European market remained firm. Exports from Phillips 66 Company plant located in United Kingdom have increased due to weak demand in the country. Further, majority of exports are shipped to APAC countries. The prices of Petroleum Coke in European region differ due to mixed demand across the region. The price of Petroleum Coke HSR grade was traded between 340-416 USD/MT, while HSP grade was traded around 1000- 1200 USD/MT. The prices have improved by 3-5 percent compared to Q3 2020. The demand from European region is anticipated to increase in coming months and prices of Petroleum Coke are expected to increase due to rise in crude oil prices across the globe.
North America
With the consistent increment in prices of the feedstock crude oil, Petroleum Coke prices in the US took an uptrend later in the Q4 2020. The demand for Petroleum Coke in the region has increased compared to Q3 2020, and the prices of non-calcined Petroleum Coke were traded between 60-72 USD/ MT. While green Petroleum Coke prices registered an upward trend and are traded between 67-73 USD/MT. The margin on Petroleum Coke have improved and the demand is surging from domestic and export market. The refineries with higher Nelson Complexity Index registered a healthy demand and higher profit margin due to rise in prices of sweet crude, while the sour crude prices gain momentum marginally. The prices of Petroleum Coke are anticipated to increase in coming months due to rising demand from the region and end use industry.
