ICC News: Petroleum coke market continue downward trend mostly this month. In early November, Sinopec once again lowered product prices following its price adjustment on October 31.
Specifically, PetroChina's northeast Jinxi Petrochemical has start production, which brings impact to the low-sulphur petroleum coke market in northeast regions. The operating rate of Petrochina for later on is at the risk of going downward in view of current market plateau right after PetroChina's across-board-drop in late October.
Local refineries continued frequent moderate tumbles all along, and price drop in medium-sulphur petroleum coke at local refineries has finally pushed Sinopec to lower price twice in a row in late October and early November, respectively, which strike a heavy blow to the medium-sulphur petroleum coke market. Meanwhile, high-sulphur petroleum coke market was quite stable at that time.
In mid-November, the market began to stabilze although some refineries were still on downward path with a slower pace.
Specifically, petroleum coke market performed quite steadily this week. Specifically, on the low-sulphur petroleum coke side, PetroChina maintained steady performance the whole week, only with Lanzhou Petrochemical lowering product prices down by 30 yuan/mt.
On the medium-sulphur petroleum coke side, Sinopec revealed discounted prices following local refineries' price cut measures in previous time. Meanwhile, after a part of local refineries lowered prices to reduce inventories this week, others also followed the suit so as to push shipment. However, this round of cross-board price drop has been less severe in both the magnitude and range as previous time.
On the high-sulphur petroleum coke side, some of Sinopec's refineries have substantially cut the price of high-sulphur petroleum coke in face of price competition from low- and medium-sulphur petroleum cokes, not seeing relevant measures taken by the government on restricting high-sulphur petroleum coke imports.
In late November, petroleum coke market once again encountered waves, as Sinopec and CNOOC revealed new preferential prices in succession.
This round of preferential margin by Sinopec is basically at par with last time, with several refineries releasing a mild increase in preferential margin. The preferential range unveiled by CNOOC for the first time this month reached 170-200 yuan/mt.
On the local refinery side, coking facilities started operation one after another, and petroleum coke coke began to stabilize. Shandong saw price drop at only a small handful of enterprises due to inventory levels.
Northwest region saw petroleum coke market turn better, which spurred PetroChina and several local refineries to increase product prices.
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