Needle petroleum coke market monthly report（10.1-10.31）

Chinacarbon news: According to Chinacarbon’s observation, domestic enterprises reported stability in production and sales during October. Jinzhou Petrochemical right now conducts both production and sales of raw materials. Since domestic raw material suppliers would rather export their products at higher price, it led to insufficient supply in domestic market. According to the head of Jinzhou Petrochemical, the company plans to continue production expansion, and increase annual capacity to 200,000 tons from current 50,000 tons of production. Shanxi Hongte Coal Chemical Industry Co., Ltd, mostly sells to long-term customers currently and prices have dropped to 9,500 yuan/mt compared with previous period, and monthly output hit 4,000 tons. Other than domestic market, Hongte also export to overseas market, like Donghai Carbon. Anshan-based Thermal Energy Research Institute of Sino-steel Group, injected a total of 2 billion yuan investment in coal-based needle coke products project, which occupy 160,000 square meter and produce 160,000 tons of coal-based needle coke per annum. Upon completion, it will realize 10 billion yuan in sales revenue and generate 0.8 billion yuan in tax.
Regarding overseas market, US-based GTI Company announced substantial price increase in oil-based needle petroleum coke, and prices for 2012 have settled at $2,650 per mt. Reason for price rise is the robust demand emerging from the ultimate market. According to news form Sumitomo Corporation (China), currently imports market is stable.CIF prices of imported needle coke from British-based CONOCOPHILLIPS Company stand at $1,800 per. According to Customs figures, along with accelerating development of China’s needle coke market, the amount of imported needle coke is decreasing by each month.
Impacted by goods news from overseas market next year, domestic enterprises are quite optimistic about next year’s overall needle coke market. Meanwhile, they are talking about making production expansion plans for next year and how to implement it. According to industry players, given differences between domestic and abroad markets as well as tightening macroeconomic conditions and sluggish steel market situations, domestic enterprises shouldn’t blindly follow foreign market trend when it comes to making plans, but should moderately adjust their plans according to actual domestic conditions.