The Petcoke prices in the USA experienced a significant price surge during December 2024, driven by bullish market sentiments and robust demand dynamics amid downstream buyers from the cement and aluminum were enthusiastic about receiving goods. This bullish trend was primarily fueled by a tight supply condition, driven by attractive discounts and a delay in the anticipated Chinese import ban.

The Petcoke market witnessed a resurgence of buying activity from key international players, including Brazil, India, and China. This renewed interest stemmed from attractive discounts offered by Petcoke suppliers, making it a more competitive fuel option. The robust performance of downstream industries, particularly aluminum and steel, played a pivotal role in boosting Petcoke demand.

As per the data, domestic raw steel mill production in the United States experienced a modest uptick, reaching its highest level in 11 weeks, according to data released by the American Iron and Steel Institute (AISI). During the week ending December 7th, US mills produced an estimated 1,668,000 short tons of raw steel, marking a 1.8% increase from the preceding week. This rise in production suggests robust demand for downstream steel products, consequently driving up the demand for Petcoke, a crucial raw material utilized in the steel production process.

China's removal of certain tax policies further incentivized industrial production, leading to a surge in demand for Petcoke as a crucial input material. As international demand for Petcoke intensified, it consecutively translated into a rise in orders for US-produced Petcoke, solidifying its position as a significant supplier in the global market. The anticipated Chinese ban on certain Petcoke imports, initially expected to take effect in 2024, appears to have been delayed. This delay further encouraged buyers to explore the higher sulfur Petcoke market, contributing to increased demand.

Moreover, the availability of Petcoke in the spot market remained limited throughout December 2024. This scarcity, coupled with a surge in market inquiries, led to a significant decline in inventory levels, further tightening supply and exerting upward pressure on prices to settle at a hike of 4% during December 2024. This shortage, coupled with low inventory levels of medium and high-sulfur varieties, has led to reduced obtainability. The downstream industries, particularly the negative electrode material and aluminum carbon sectors, are actively seeking to procure these materials. Major refineries have halted the supply of petroleum coke to both the fuel and silicon industries.

As per the data, the Petcoke prices are expected to surge further in January 2024 on the back of restocking activities before the anticipated surge in global freight charges.