Supply Constraints Propel Global Pet Coke Prices Upward in the First Half of August 2023

In the first half of August 2023, the global Petroleum Coke (Pet Coke) market exhibited notable price increases across different regions, reflecting the intricate interplay of various market factors.

In the European market, the price of Pet Coke saw a moderate uptick of around 1.5%. This price surge was chiefly attributed to the higher costs associated with importing the product from overseas sources, particularly from the United States. Within the same timeframe, the USA noted a concurrent 1% price escalation for Pet Coke. However, the price surge was not solely driven by external influences. The downstream construction industry demonstrated a modest recovery, contributing to the overall price rise. Despite this, the domestic supply of Pet Coke remained stable, exerting a limited impact on the price dynamics. Consequently, the European Pet Coke market witnessed prices settling around USD 630 per Metric Ton (MT) during the month's initial half. This situation underscores the intricate connections between global markets and the delicate equilibrium maintained between import costs, industry trends, and regional supply factors.

In the Asian market, particularly in China, Pet Coke prices experienced a similar bullish trend over the same period. The price of products in the Chinese market surged by approximately 3.7%. This surge was attributed to fluctuations and upward movements in the international crude oil market. Moreover, concerns surrounding market supply, ongoing fermentation issues, and the favorable phase of the peak oil consumption season prompted the OPEC+ coalition to continue its additional production reduction. This move exceeded expectations due to declining finished oil storage in the United States. In parallel, port Pet Coke storage saw a consistent decrease, while refined Pet Coke storage remained low. This diminishing inventory at domestic ports was coupled with rising terminal operating rates, thereby boosting demand. The arrival of imported Pet Coke at ports witnessed a decline, while downstream procurement and robust import trader activities further fuelled demand. Swift port shipment speed also contributed to the destocking of products in ports. Refined Pet Coke shipments performed well during this period, and overall refinery inventory remained notably low. The focus primarily shifted towards fulfilling early orders as downstream demand demonstrated strength, consequently driving up the price of refined Pet Coke. However, with elevated Pet Coke prices, some downstream entities were more cautious, leading to increased wait-and-see sentiment.

In both European and Asian markets, the Pet Coke price trends of August 2023 underscore the intricate blend of global factors, ranging from international oil market dynamics to regional supply and demand shifts, which collectively contribute to shaping the prices of this essential industrial product.