Petroleum coke market maintains consolidation at high position in October: monthly report

ICC News: Early October, as price of coal and petroleum coke at port rose, logistic services got resumed and downstream sectors began to stock up, petroleum coke inventory at refineries reduced considerably after the National Day holiday. Domestic petroleum coke market continued to move up, particularly local refinery market.
Afterwards, the market consolidated at high position. Major enterprise market overall maintained stable with no adjustment measures for the moment.
The quantity of purchase made by downstream sectors seemed ok; local refineries were in a stable period for the time being.
On the low-sulphur petroleum coke market, both supply and demand side stayed stable. Iron and steel enterprises have turned profitable from losses. Carbon enterprises make purchases of low-sulphur petroleum coke as they needed. Some of PetroChina's refineries sell products at prices that they first paid for them, which is a low price of 1,000 yuan/mt. Settlement price will be unveiled at the end of the month.
On medium-sulphur petroleum coke market, supported by a variety of favorable factors, the number of local refineries that raised price as well as the magnitude of price rise were on the rise. Major enterprises' refineries also started to catch up to the move.
On the high-sulphur petroleum coke market, the environmental inspection campaign continued to have an impact on the market. Meanwhile, winter of this year is particular cold, which will lead to higher demand for coal, hence thermal coal market will continue to see balanced supply and demand.
Continued upswing on coal market will continue to provide support to high-sulphur petroleum coke market.
As of late October, prevailing prices of 1#A are 1,000-1,100 yuan/mt; 1#B are 1000-1,050 yuan/mt; 2#A are 960-1,030 yuan/mt at Sinopec and 990-1,020 yuan/mt at local refineries; 2#B are 840-900 yuan/mt at Sinopec and 820-860 yuan/mt at local refineries; 3# are 800-840 yuan/mt at Sinopec and 680-730 yuan/mt at local refineries; 4#-5# are prevailingly 500-650 yuan/mt at Sinopec.
In downstream sectors, steel market maintained stable demand. Steel enterprises have turned profitable and aluminum enterprises' profits have improved, which conduce to stable demand for carbon product and favorable sales and profits for calcined petroleum coke enterprises.
In face of continued rise in raw material price and stable demand from downstream market, a majority of calcined petroleum coke producers believe sales in Q4 will largely be favorable and the market will continued to move towards positive direction.