The Petroleum Coke (Pet Coke) prices in the US market have continued to surge during February 2025 despite a simultaneous decline in the feedstock crude oil prices. Traditionally, pet coke has been seen as a cheaper alternative to coal, often sold at a discount. However, that discount is shrinking where it's becoming as expensive, or nearly as expensive, as coal.

Key Takeaways:

• Pet Coke prices continued to surge in February 2025 due to the return of Indian and Chinese players.
• The decline in freight charges increased pet coke demand.
• Discounts between the pet coke and coal have narrowed down.
• Despite a decline in the feedstock crude oil prices, pet coke prices have surged.

As per ChemAnalyst, the pet coke prices in the US market are expected to further surge in March 2025 on the back of high demand from the international market. However, the trading activity from the US Gulf market related to commodities is expected to slow down as businesses are unsure about how new U.S. tariffs on imported goods will affect them.

Meanwhile, the pet coke prices have surged by 4.3% during February 2025 as compared to the previous month with discounts now falling into the expensive zone towards the competitive fuel. This surge was attributed to the surge in demand for pet coke especially from China and India amid the return of market players.

Due to the decline in freight charges, inquiries about pet coke have increased during this timeframe. Additionally, low shipping charges were caused by subdued market activity due to the Lunar New Year celebration. As per the data, the average cost to transport a Supramax-sized shipment of pet coke from Houston to European ARA ports, for immediate shipping, has declined by aprox 13% from January 2025 to February 2025. This drop in freight charges has decreased the logistical problems and pushed the pet coke market prices to surge during February 2025.

The feedstock crude oil prices fell in February 2024 after the EIA released data for higher inventory levels. Moreover, President Trump has promised to increase the US oil supply to the market which declined the crude oil prices. Simultaneously, competitive fuel such as coal prices have fallen amid the energy complex has declined, yet pet coke prices have continued to surge due to tight spot availability. Despite the Russian coal is becoming a competitive fuel, still the market players are opting for pet coke during this timeframe which surged the market prices.