China's Petroleum Coke market experienced a significant price uptick in November 2024, driven by a surge in new orders from the expanding downstream cement and aluminum sectors. The post-National Day holiday period in October witnessed a resurgence in consumer sentiment within the construction industry, which translated into increased demand for Petroleum coke during November 2024.

The Petroleum Coke market in China has rebounded to settle USD 289/ MT (Calcined) Ex-Shanghai with a monthly hike of 2.1% during November 2024. A key factor contributing to the price hike was the scarcity of spot goods in the market. The Pet coke supply in China remained tight due to high demand from the cement and aluminum production end. This heightened demand, coupled with the limited availability of low-sulfur petroleum coke in port areas, has resulted in a tight supply situation. The suspension of trading and quoting by several companies has added to the market uncertainty, making it difficult to assess the true extent of the supply shortage. This supply crunch was exacerbated by the impact of recent typhoons in China, which disrupted supply chains and limited the availability of Petroleum coke. While the decline in crude oil prices led to lower manufacturing costs, this reduction was insufficient to counteract the upward pressure on prices caused by robust demand.

Moreover, the Chinese Petroleum coke market is complexly linked to the performance of downstream industries. The cement and aluminum sectors are major consumers of Petroleum coke, and their growth trajectories directly impact demand for this commodity. As these industries experienced a resurgence in activity, the demand for Petroleum coke followed suit. The post-holiday surge in consumer sentiment within the construction sector played a crucial role in driving demand. Increased construction activity translates into higher demand for cement, which in turn necessitates more Petroleum coke for its production. Additionally, the aluminum industry, which relies on Petroleum coke as a reducing agent, also witnessed increased demand, further bolstering the market. As per the data, October alone saw a 10.1% month-over-month and 41% year-over-year jump in steel exports from China, reaching 11.182 million tonnes. This surge has a direct impact on the demand for Pet Coke for steel production.

As per ChemAnalyst, Petroleum coke prices in China prices are expected to decrease due to heavy discounts provided by suppliers amid destocking seasonality. A potential slowdown in the global economy could decline the demand from the downstream industries which could lead to a correction in prices.