According to the commodity analysis system of SunSirs, the market for locally refined petroleum coke saw a significant increase in mid January. As of January 21, the price of locally refined petroleum coke in the Shandong market was 1,780.00 RMB/ton, an increase of 7.23% from 1,660.00 RMB/ton on January 11.

On the cost side: In mid January, crude oil prices first rose and then fell. The OPEC+ production reduction agreement was extended until the end of the first quarter, and some oil producing countries still have compensatory production cuts. The United States has increased sanctions on Russia, and there are strong concerns about supply shortages. The positive support from the crude oil supply side has led to a significant increase in crude oil market prices; The easing of the Palestinian Israeli situation weakens potential supply risks, and the United States will increase crude oil production and replenish strategic reserves, causing a decline in crude oil market prices.

Supply side: Recently, the shipment of petroleum coke has been good and transactions have been active. Some coking units have plans to shut down or reduce production, resulting in a decrease in the supply of petroleum coke. In addition, with the approaching Spring Festival and downstream enterprises stocking up before the holiday, the price of petroleum coke continues to rise. Recently, the import of sponge coke resources has been relatively tight, and traders are hesitant to sell.

On the demand side: Currently, the overall operating rate of the domestic silicon metal market is low, and there are few silicon metal factories in production in Yunnan and Sichuan regions. The market mentality is not good. In January, silicon metal factories continued to reduce production, and although inventory pressure was tight and accumulated slightly, demand conversion was not timely. The overall performance of the silicon metal supply side is still weak, providing limited support to the market. The demand for high sulfur pellet coke in the silicon carbide industry and the southern fuel market still exists.

In mid January, the overall price of electrolytic aluminum rose, and the stock of Shanghai Aluminum continued to drop to a 10 and a half month low. At the same time, the ban on Russian aluminum intensified supply concerns; In addition, the urgent need for downstream replenishment before the holiday provides support for aluminum prices. Downstream aluminum uses carbon as the main demand in the petroleum coke market.

With the Spring Festival approaching, refinery Spring Festival orders have been signed one after another, and downstream demand has entered the market. It is expected that the petroleum coke market will gradually stabilize in the near future, with narrow fluctuations being the main trend.

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