Market update September 8 2008
Green coke prices continued to fall last week. Fushun refinery, which produces low sulphur coke has now dropped prices by RMB800 in two weeks. Medium-sulphur coke prices suffered less, but it’s clear that individual refineries are constantly adjusting their position relative to each other. All the signs are that the refineries themselves are not quite sure what’s happening, or what’s likely to happen in the coming weeks. They seem to be reacting primarily to inventory levels rather than to a strategic position.
Several smaller refineries have taken the option to pull their cokers down for maintenance through this period of uncertainty. Major refineries which are currently not producing coke include Da Qing, Liaohe and Shengli.
Calcined coke prices are remaining stable despite the slide in green coke, as are anode prices. But this postion is more likely due to the market’s desire not to telegraph lower prices. More than likely the actual trades are happening at a discount to the published prices.
Tags: calcined coke