Calcined Coke Rallies and Holds Firm This Week; Local Refinery Coke Prices Bottom out and Rebound
Petroleum Coke
The petroleum coke market showed divergent trends this week, with prices at major domestic refineries largely stable with minor fluctuations. Major refineries reported decent product shipments. Prices of petroleum coke from local refineries saw mixed ups and downs. Downstream participants showed weak acceptance for high priced supplies, and some enterprises offered price concessions to boost transactions. Port inventories of imported coke kept declining, and incoming cargoes circulated on an as needed basis. Downstream carbon enterprises for aluminum production maintained rigid demand procurement. Anode material enterprises operated at high capacity yet remained cautious in restocking. It is expected that low sulfur coke will enjoy strong downside resistance supported by downstream demand next week, while prices of medium and high sulfur coke will mainly fluctuate.
Calcined Coke
Trading in the calcined coke market remained at rigid demand levels this week. Enterprises producing low sulfur calcined coke held sufficient order books and were strongly inclined to hold firm on prices. Transactions for medium and high sulfur calcined coke were sluggish, with prices moving in line with raw material swings. Raw material petroleum coke formed cost floor support. The anode material industry kept high operating rates, generating decent demand for calcined coke. The graphite electrode market stayed stable; enterprises proceeded slowly with restocking with limited purchase volumes. For next week, prices of low sulfur calcined coke are projected to firm up, whereas medium and high sulfur calcined coke will fluctuate within a narrow range following raw material movements.
Electrolytic Aluminum
Aluminum prices fluctuated this week. The average spot price of electrolytic aluminum stood at RMB 23,924 per ton on Friday, up RMB 86 per ton compared with the average price on Monday. LME aluminum was underpinned by low inventories overseas, yet easing geopolitical risks reduced upward momentum for external quotations. Domestic electrolytic aluminum supply remained high amid the transition between off peak and peak seasons. Downstream buyers mostly purchased according to actual needs, with little willingness to chase price rises in the spot market. Macroeconomic sentiment kept disturbing futures prices, and peak season expectations have not yet materialized. It is forecast that aluminum prices will stay in a volatile pattern next week, trading within the range of RMB 23,300 24,000 per ton.