Recent updates from the petroleum coke market reveal drastic price increases, with some manufacturers reporting daily price fluctuations and steep surges. Starting from February 8, 2025, major oil companies have raised low-sulfur petroleum coke prices by 1,000 RMB per ton:
- Jinzhou Coke: RMB 5,500/Ton (+1,000)
- Fushun Coke: RMB 5,800/Ton (+1,000)
- Daqing Coke: RMB 5,630/Ton (+1,000)
- Jilin Coke: RMB 5,260/Ton (+1,000)
This marks the second significant price hike after the Chinese New Year, following a previous surge just days ago.
Petroleum coke prices are soaring due to tight supply, with downstream anode and cathode companies increasing purchases. Additionally, the closure of several coking plants in February and anticipated reductions in local refinery production are further tightening the supply. Imported petroleum coke prices are also rising, driven by domestic price hikes. Currently, low-sulfur coke is in a supply-demand imbalance.
For the first time in history, low-sulfur coke prices have exceeded needle coke prices, which are currently between 5,000-5,400 RMB per ton. This price inversion is rare, as needle coke, a premium carbon material, is crucial for producing high-performance electrodes.
Graphite electrode manufacturers, already operating at a loss before the price hikes, are now facing unbearable cost pressures. As a result, major industry players raised graphite electrode prices on February 7. This price hike is not limited to the domestic market but is also impacting global markets. Tokai Carbon recently announced a 10% price increase for all 2025 orders.
The price increase will likely continue in the first half of 2025 due to persistent cost pressures, although the actual impact on downstream steel mills may take time, as most electric arc steel mills plan to resume production by mid-February. However, it is clear that price hikes are more likely than price decreases in the near future.
