For the Quarter Ending September 2024
North America
The third quarter of 2024 for Petroleum Coke in North America has been marked by a decreasing to stable price trend. Firstly, excess supply levels and weak demand have created a buyer's market, leading to a price decrease during July 2024. This trend has been further exacerbated by a substantial drop in demand from the construction sector, a key consumer of Petroleum Coke.
In the USA, which has experienced the most significant price changes, a cautious approach from buyers and an on-demand procurement strategy have helped maintain a balance between supply and demand, preventing significant price fluctuations during August 2024. The transportation sector has experienced a surge in prices due to the hurricane season ongoing strikes, which have normally led to higher commodity costs. However, this trend has been offset by persistent discounts offered by sellers during September which kept the prices unchanged.
Additionally, there was a notable decrease of 7% from the previous quarter in 2024. The quarter-ending price for Petroleum Coke Calcinated Grade FOB USGC in the USA stood at USD 382/MT, indicating a consistent stable trend in pricing throughout the quarter.
APAC
The third quarter of 2024 for Petroleum Coke in the APAC region has been characterized by decreasing prices, followed by an uptrend. In July 2024, the ongoing trade disruptions and logistical issues have impacted the supply chain, contributing to an upward pressure on prices. Moreover, floods and port closures in China caused by the rainy season have significantly impacted trade flows. However, In August 2024, a significant reason for the price decline has been the global economic slowdown, leading to reduced demand for petroleum coke across industries. Additionally, the weakening coking coal market has reduced the competitiveness of pet coke as a carbon source, further limiting its demand. Furthermore, a resumption of production and the continued arrival of imported Petroleum Coke indicated sufficient domestic supply in September 2024 due to port inventory clearance which led to a bearish market trend. The quarter-ending price for Petroleum Coke (Calcined) Ex-Shanghai in China was USD 285/MT, underlining the persistent downward trajectory in the pricing environment.
Europe
In Q3 2024, the Petroleum Coke market in Europe experienced a period of marginal declining prices, with the Netherlands witnessing the most significant price changes. Despite, Petroleum Coke discounts having somewhat dropped, they were reasonably priced and provided some potential to the market during July 2024. Various factors influenced this trend, including ample supply levels, heavy discounts, and disruptions in the transportation sector due to ongoing conflicts and weather-related issues which somewhat counterbalance the prices. The decrease in demand, particularly in the construction sector, along with the decline in coal prices, contributed to the softening of Pet Coke prices in August 2024. While some blenders will stay open through August, product promotion and purchases have slowed down until early September due to holidays in Europe. Notably, there was a slight decline of 1% in prices between the first and second half of the quarter. The quarter-ending price for Petroleum Coke Calcined FD Rotterdam in the Netherlands stood at USD 374/MT, underscoring the prevailing negative pricing environment marked by stability and decreasing prices.
South America
In Q3 2024, the Petroleum Coke market in South America experienced a period of stability with a marginal decline in prices. Despite an uptrend in feedstock crude oil prices, the Brazilian Petroleum Coke market remained resilient during July 2024 due to high discounts provided by the manufacturers. However, the re-imposition of sanctions on Venezuela, a significant pet coke exporter, initially caused a drop in exports. The market has marginally experienced a supply shortage, potentially due to hopes of exemptions for pet coke which offset the declining trend during August 2024 and led to a cautious approach from buyers in September 2024. The market saw this downward trend continue from the previous quarter in 2024, recording a -6% change. The latest quarter-ending price for Petroleum Coke Calcined Grade CFR Santos in Brazil stood at USD 425/MT, underscoring the market's stable sentiment and consistent pricing dynamics. Overall, the pricing landscape for Petroleum Coke in South America during Q3 2024 can be characterized as maintaining a steady and balanced trajectory.
For the Quarter Ending June 2024
North America
In Q2 2024, the Petroleum Coke market in North America experienced a notable decline, primarily driven by various market dynamics and external influences. The quarter saw a confluence of factors including high inventory levels, sluggish demand from downstream sectors, and huge discounts from Venezuela. Inflationary pressures played a significant role, with both selling and input cost inflation reaching their lowest levels in six months. Additionally, the overall market sentiment remained cautious due to geopolitical uncertainties and economic concerns.
Focusing on the USA, which witnessed the most significant price fluctuations, the overall trend leaned towards a bearish market. Seasonality and demand fluctuations, particularly from the construction sector, contributed to this downward trajectory. The correlation in price changes highlighted a consistent decrease, influenced by high port inventories and lower shipping costs which exerted downward pressure on prices.
Concluding the quarter, the price settled at USD 389/MT for Petroleum Coke Calcinated Grade FOB USGC, USA. This consistent decrease suggests a negative pricing environment, reflecting challenges in stabilizing the market amidst fluctuating supply and demand dynamics.
APAC
The APAC region has experienced a notable increase in Petroleum Coke prices during Q2 2024, driven by various significant factors. Primarily, the geopolitical tension and supply risks in upstream crude oil and natural gas markets have led to higher production costs for Calcined Petroleum Coke during April 2024. Nonetheless, buyers have adopted cautious procurement strategies, focusing on immediate needs rather than bulk purchases, which has contributed to a balanced market dynamic. This surge in costs has been compounded by disruptions in refinery operations due to maintenance shutdowns, which have reduced the overall supply of Petroleum Coke in the market during May 2024. Scheduled maintenance shutdowns at coking units in Fuhai United and Zhenghe Petrochemical have reduced domestic production of petroleum coke in China. Coinciding with the maintenance shutdowns, existing petroleum coke storage at refineries was recorded to be low. Focusing on South Korea, the market has seen the most pronounced price changes in the region. The overall pricing trend for Petroleum Coke in South Korea during Q2 2024 reflects a stable to bullish trend yet cautiously optimistic environment, despite the seasonal downturn in demand from downstream industries. The quarter witnessed a 7% price increase compared to the same period last year, highlighting a positive sentiment driven by improved economic conditions and strategic stockpiling before the peak consumption season.
Europe
In Q2 2024, the Petroleum Coke market in Europe has experienced a significant downtrend, driven largely by several critical factors. The quarter has been marked by an oversupply of Petroleum Coke relative to demand, exacerbated by high inventory levels and subdued procurement activity. Competitive pricing from foreign markets, particularly from exporters offering substantial discounts, has further pressured local market prices. This pricing strategy, alongside aggressive marketing tactics, has led to a bearish sentiment throughout the quarter. Focusing on Germany, which has seen the most pronounced price fluctuations, several trends emerge. The overall market environment has been negative, with prices reflecting a stark 43% decline compared to the same quarter last year. From the previous quarter in 2024, prices dipped by 24%, indicating an ongoing struggle to stabilize market value amid persistent supply surpluses and low demand. The latest quarter-ending price for Calcined Petroleum Coke in Germany, recorded at USD 361/MT CFR Hamburg, encapsulates this negative pricing environment. These consistent decreases reflect an overall challenging period for the Petroleum Coke market, driven by high supply and competitive pricing strategies that have significantly eroded market stability.
South America
In Q2 2024, the South American region witnessed a significant decline in Petroleum Coke prices, with Brazil experiencing the most notable changes. This quarter has been characterized by a multitude of factors influencing market prices. The overall trend in the region has been negative, with Q2 2024 alone, prices dropped by 17% from the previous quarter, indicating a continued downward trajectory. The factors have contributed to this pricing environment, including sluggish demand from downstream industries, excess supply level from Venezuelan discounts and cautious market sentiment. Additionally, the re-imposition of sanctions on key exporting countries has impacted imports, further driving prices down. Oil exports have already decreased by 38% MoM as a result of the impact, nevertheless, there might be opportunities for exceptions for specific goods. However, the available supply of Pet Coke was enough to cater to the subdued demand. The Brazilian market, in particular, has been impacted by these factors, resulting in the quarter-ending price of USD 431/MT for Petroleum Coke Calcined Grade CFR Santos. Overall, the pricing environment for Petroleum Coke in Q2 2024 has been predominantly negative, reflecting a challenging market landscape characterized by declining prices and uncertainty.
For the Quarter Ending March 2024
North America
The first quarter of 2024 has been negatived for Petroleum Coke pricing in the North American region, with prices experiencing a significant decline. The supply-demand dynamics played a significant role in shaping the market.
Moderate supplies and low to moderate demand declined the overall price trend throughout the quarter. The reduced demand from the downstream steel industry for pet coke, the impact of crude oil prices on production costs, and the availability of Venezuelan pet coke in the market played crucial roles. The USG market softened during this time frame due to a lack of fresh demand, as most spot cargo requirements with upcoming holiday delivery dates had already been covered.
Moreover, weak demand and abundant Pet Coke stocks in the USA put downward pressure on prices. Due to the subdued demand from the regional as well as the international market, the traders have started to provide heavy discounts by Venezuela on the product throughout quarter one. Despite disruptions caused by issues in the Red Sea and Panama Canal shipping routes, the supply of Pet Coke in the USA remained steady.
APAC
The first quarter of 2024 has been characterized by mixed prices for Petroleum Coke in the APAC region. The lower arrivals and decreasing inventory during January 2024 exacerbated the uptrend as fewer petroleum coke shipments at ports have led to declining stockpile levels which further added to price hikes. Additionally, active stocking from the downstream construction industry further supported the trend amidst pre-holiday restocking by consumers has further tightened domestic supply. Because of the restricted supply, purchasers are forced to compete, which drives up prices. After the Lunar New Year Holiday, the Pet Coke market in South Korea witnessed a significant drop during the end of February 2024. The post-holiday rush, where downstream enterprises stocked up, has subsided. This decrease in demand has left the market with a surplus of petroleum coke, putting downward pressure on prices. This decline in demand has put downward pressure on prices. Furthermore, the ease in supply pressure from the Chinese market has contributed to the overall negative sentiment. Both domestic ports and importers are experiencing high petroleum coke storage levels.
Europe
Quarter 1 of 2024 saw a declining trend in the European Petroleum Coke market with low demand and ample supply. The prices experienced a decline due to oversupply and intense competition among vendors. The emergence of Venezuela as a new source of low-sulfur Pet Coke further intensified the struggle for buyers. Germany, a significant consumer of Pet Coke, witnessed steady pricing with a significant decrease compared to the previous year and quarter. Despite shipping disruptions, the supply chains demonstrated resilience, ensuring a continuous supply of goods. Furthermore, insufficient demand and an abundance of Pet Coke supplies in Europe pushed prices downward. Due to low demand in both the regional and international markets, Venezuelan dealers have begun to offer significant discounts on the goods throughout the first quarter. Due to a deteriorating trend in the European market, the month came to an unfavorable close. The number of available ships kept increasing, surpassing the restricted amount of Pet Coke cargo on main routes. Throughout the quarter, high supplies and low to moderate demand lowered the overall price trend.
South America
The South American region witnessed declining market sentiments during the first quarter on the back of a supply glut from Venezuela and low demand. Various factors have influenced market prices, including supply and demand dynamics, currency fluctuations, and competition from other suppliers. Overall, the market has been characterized by a bearish trend, with prices declining compared to the same quarter last year. In Brazil, the price of Petroleum Coke has decreased by 37% compared to Q1 2023, reflecting the downward trend observed in the market. Additionally, there has been a 28% decrease in prices from the previous quarter in 2024, indicating a further decline in pricing. The latest quarter-ending price for Petroleum Coke Calcined Grade CFR Santos in Brazil stands at USD 480/MT, indicating a relatively stable pricing environment. However, the market has been negatively impacted by factors such as oversupply, competition from other suppliers, and weak demand from industries such as iron and steel. Market conditions, including supply and demand dynamics and competition, have influenced pricing trends, resulting in a bearish market sentiment.
For the Quarter Ending December 2023
North America
The North American petroleum coke market witnessed overall stability during the fourth quarter of 2023, with no notable shortages of materials. However, the previous quarter reflected an overall declining trend, while the current market situation remained moderately unchanged. The feedstock crude oil price was a key factor that could affect product pricing.
The USA experienced a period of stability in demand, with an uptick observed due to new inventories entering the market among suppliers kept the market strong during November. However, the price of pet Coke remained stable in the US market during December, largely due to the steady demand from the downstream construction industry, which balanced against a moderate supply of the product within the country. The latest/quarter-ending price of Petroleum Coke Calcinated grade FOB USGC in the USA was USD 668/MT.
This decline contributed to a more pronounced deterioration in operating conditions within the goods-producing sector, marked by contractions in output, new orders, employment, and stocks of purchases. The downstream construction sector has not performed up to the mark due to the winter season and many enterprises were willing to clear inventories which further balanced out the overall trend.
APAC
The Petroleum Coke market in the APAC region witnessed stability during the current quarter of 2023 (Q4). The market was impacted by a complex interplay of economic indicators and global energy trends. The negative electrode market exhibited weakness, which contributed to a lack of support for the pricing of medium sulfur conventional calcined coke. The market for medium sulfur trace amount calcined coke remained steady, reflecting sustained demand. The South Korean market observed moderate demand for Calcinated Petroleum Coke, while the supply remained stable, leading to a bearish trend during October 2023 in the market. This drop in value mirrored a broader trend in the Asian market, particularly in China, which serves as a significant supplier of Pet Coke to South Korea. The stable demand was due to the essential nature of the product for the downstream construction industry which kept the market unchanged during December to settle at 357 USD/tonne Calcinated Petroleum Coke CFR, Busan. However, the percentage change from the previous quarter was 4%.
Europe
European Pet Coke prices saw a two-month rise in October and November, driven by a confluence of factors. Overall, the consistent demand from the downstream construction industry and the tightening of tonnage supply played a pivotal role in supporting the price trend of the product. Overseas import costs, particularly from a 0.5% price hike in the US, played a key role. Additionally, a slight recovery in downstream construction nudged prices upwards, despite a stable domestic supply. However, December brought stability as a stark drop in new construction orders, attributed to a broader economic slowdown and inflation, balanced out the upward pressure. Ultimately, European Pet Coke prices stabilized in December, reflecting a delicate equilibrium between demand and supply, albeit in the face of persistent challenges in the construction sector and broader economic environment. The market situation for Belgium remained stable, with moderate supply and destocking activities affecting product pricing. The Euro to the United States Dollar depreciated in the 1st week of December, with a weekly incline of 1.09%, affecting currency fluctuations. The last quarter-ending price of Petroleum Coke Calcined FD Antwerp in Belgium for Q4 2023 was USD 722/MT.
South America
The South American region witnessed mixed market sentiments during the fourth quarter with a monthly decline in November, while rebounded during December 2023 due to an expensive import from overseas and surging demand, along with new inventories entering the market among suppliers, kept the market situation strong. October witnessed the downstream construction sector experiencing stability in demand, but a decline in production and new orders indicated a resumption of contraction following a brief uptick during November subdued the sentiments. The Brazilian market has witnessed commendable consistency in product supply, facilitating smooth operations for businesses. The pricing dynamics of ground refined petroleum coke exhibited fluctuations, influenced by subdued downstream demand and moderate hoarding enthusiasm. This decline contributed to a more pronounced deterioration in operating conditions within the goods-producing sector, marked by contractions in output, new orders, employment, and stocks of purchases. However, Brazil heavily relies on imports from the USA for its Pet Coke supply, and changes in the US market often ripple into the Brazilian market. The latest price of Petroleum Coke Calcined Grade CFR Santos in Brazil for Q4 2023 was USD 690/MT during December.
