German Petroleum Coke Prices Remains Stable During September 2024 Amid Wide Discounts

The European Petroleum Coke market in Germany witnessed a period of stability in September 2024, defying the upward pressure exerted by increased freight costs. While the transportation sector from the USA has faced disruptions due to the hurricane season and ongoing strikes in Germany, leading to higher commodity prices, the Petroleum Coke market has remained relatively unaffected. This stability was attributed to persistent discounts offered by sellers amid the presence of lower-priced Venezuelan cargoes, and a cautious approach from buyers which kept the prices intact during this timeframe. Despite the prices of Petroleum Coke remaining stable during September 2024, the overall market trend was bearish due to lower enthusiasm from the consumer end.

One of the primary factors contributing to the stability of Petroleum Coke prices is the continued availability of Venezuelan cargoes. These cargoes, known for their higher sulfur content, typically trade at lower prices compared to other origins. The presence of Venezuelan cargoes in the market has put downward pressure on overall prices, offsetting any upward pressures from other transportation-related factors to settle the prices at USD 356/MT Petroleum Coke Calcined CFR Hamburg, Germany during September 2024.

Moreover, the shipment of refined Petroleum Coke has remained average throughout the period, with mainstream prices stabilizing. However, procurement activity has been limited, reflecting a cautious approach from buyers. Millions of tonnes of Petroleum Coke remain unsold, partially due to US sanctions that have deterred several cement buyers. This uncertainty has created a favorable environment for buyers, who have capitalized on the situation by lowering their offers, particularly in the downstream high-sulfur market. The challenging lending environment for downstream construction projects and continued weakness in these projects have hindered inquiries and construction activity, leading to reduced demand for Petroleum Coke. This decline in demand has further contributed to the stability of prices. Additionally, the widening discount between coal and Petroleum Coke prices has returned Petroleum Coke to the cheap zone. While Petroleum Coke still offers a favorable discount compared to coal, it is currently at the lower end of this cheap zone, which reinforces the stability of prices during this timeframe. Henceforth, despite the slight increase in freight prices from the USA to Germany, discounted rates have continued to fall which offset any fluctuations in the market and ensures that the overall price remains stable. As per ChemAnalyst, the Petroleum Coke market in Germany is expected to showcase a marginal decline in the upcoming month due to huge discounts.