US Petroleum Coke Price Slumps in October 2024 Amid Heavy Discounts

After witnessing immense stability, the US Petroleum Coke prices experienced a downtrend in October 2024 despite the high demand from the downstream construction industry. This unexpected shift was attributed to a widening price gap with other competitive fuels including the coal market. The widening price gap with competitive fuels has weakened market sentiment and increased supply due to lower freight rates have all contributed to declining Petroleum Coke prices in the USA.

A significant contributor to the price decline was the widening gap between Petroleum Coke and other competitive fuels, particularly coal. This gap has been exacerbated by the lower Coal energy complex.  The declining price of coal, a direct competitor to Petroleum Coke, has made it a more attractive option for energy consumers. This trend has been driven by a combination of factors, including increased supply, lower demand from the global market, and strategic bidding by traders. Moreover, to remain competitive, Petroleum Coke suppliers have been offering significant discounts, further eroding profit margins and putting downward pressure on prices. Moreover, the discount between Petroleum Coke and coal prices, is at a historically high level, even surpassing the discount to Russian coal reached a significant 41 percent due to lower coal prices. This gap has further eroded consumer enthusiasm to acquire Petroleum Coke as an energy source and created intense market competition. The confluence of these factors has led to a negative market sentiment, characterized by uncertainty and pessimism.

Additionally, increased supply and competition have further supported the declining Petroleum Coke price trend. The emergence of new supply sources, particularly from the Mexican Gulf and Venezuela, has added to the competitive pressure. A lack of demand from the global market, coupled with strategic bidding by traders, has further contributed to the downward trend. While the market has been grappling with bearish trends, factors like port strikes and hurricane seasons have led to a decline in freight rates for Petroleum Coke shipments. This development, along with potential increases in tonnage lists and volume, could have a positive impact on the market in the long run.

As per ChemAnalyst, the Petroleum Coke prices in the US market are expected to further decline in the upcoming weeks due to strategic discounts. Additionally, on the international stage, France-based industrial equipment supplier RBL-REI has successfully deployed a cutting-edge conveyor system for managing limestone and Petroleum Coke at Cooperative La Cruz Azul's cement facility in Lagunas, Oaxaca, Mexico. This installation has enhanced operational efficiency and sustainability at the Lagunas plant, optimizing Petroleum Coke handling and boosting overall production capacity.