Energy Argus Petroleum Coke Issue 15-48  |  Wednesday 2 December 2015

Market overview

Key prices Petroleum coke spot market

US high-sulphur coke prices rebound US Gulf high-sulphur petroleum coke prices are bouncing up because of lower freight rates and sellers holding out for higher prices. Prices for 6.5pc sulphur coke have rebounded to the mid$20s/t after testing the $20/t level in a few deals two weeks ago. Demand remains weak, but supply is limited as sellers have closed out their 2015 contracts and others are holding on to whatever they have left in order to capitalize on restocking demand in early 2016. A couple of buyers are in the market testing the waters for December tons, but they say they will likely push back their requests until after year-end if sellers hold to asking prices at $25/t or more. Buyers are still hoping to contract at levels closer to $23/t. There have been one or two deals over the past week for January loading at $23-24/t. One deal was heard at less than $21/t, but participants said this was below market level and could have been off-spec coke. The Argus assessment rose by $1.50/t to $24/t. Sellers’ renewed confidence is partly based on a widening arbitrage to India. Freight rates for supramax vessels on the US Gulf-to-India route have declined by $1.50/t to $20.50/t, and cfr China: 3.0% vs 4.5% coke 130

cfr China 3%

$/t

Price

±

Four-week average

Atlantic basin fob US Gulf coast 4.5% sulphur

40

36.00

0.00

38.50

fob US Gulf coast 6.5% sulphur

40

24.00

+1.50

22.63

fob Venezuela 4.5% sulphur

70

39.00

-1.00

41.00

cfr Turkey 4.5% sulphur

70

50.00

-2.00

53.50

37.92

0.00

40.23 73.25

Coal, fob US Gulf coast 3.0% 11,300 Btu Pacific basin fob US west coast