The Black China Blog

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.

Green coke

The market began to turn down last week, especially for high sulphur cokes. Zhenhai, China’s largest producer of high sulphur coke, dropped their market price by RMB80, while Gaoqiao dropped their price by RMB50. Even low sulphur cokes began to be affected by the turndown, though many list prices are yet to reflect the actual trade prices. Dagang decreased from 3900yuan/ton to 3100yuan/ton, a decrease of 800yuan/ton. Jinzhou and Jinxi petrochemical both went down another 600Yuan/ton, a total decrease of 900yuan/ton each in two weeks. High inventory levels are being blamed for the price reduction.

Calcined coke
The price of low sulphur calcined coke fell 300-500yuan/ton. However, moderate sulphur coke remains stable at RMB3,400 to 3,600.

Anode
The domestic price is continuing relatively stable, with prices remaining in the RMB4,500 to 4,800 range.