Saudi Arabia may step up Yanbu coke loading

: Petroleum coke
26/03/11

The Saudi Aramco/Sinopec Yasref refinery in Yanbu, Saudi Arabia, is looking to maximise petroleum coke exports this month after Satorp, Aramco's other joint venture refinery in Jubail, halted shipments because of Iranian attacks on vessels in the region.

A Chinese trader has a tender closing on Wednesday for a high-sulphur Supramax coke cargo loading in Yanbu at the end of March. The sale is for delivery outside of China and is likely to sell to India.

Offers for coke shipments from the 400,000 b/d Yasref refinery that have already loaded and are on the water have surged because of the supply tightness. One Chinese buyer received an offer for a prompt Yanbu cargo at $270/t cfr China last week. Chinese buyers had been negotiating this material in the low-$170s/t before the war. Another buyer received an offer for a floating cargo of Yanbu coke that is scheduled to arrive in China in late March at $205/t cfr.

The Yanbu port is on Saudi Arabia's western border with access to the Red Sea, the other side of the country from where Iran has been attacking vessels and energy infrastructure. Loading from Yanbu — at least so far — has not been interrupted by the war, and at least two cargoes have arrived to load coke since the war started on 28 February, a market participant said.

Yanbu typically ships out 1.8mn t/yr of coke, mainly to China and India. A roughly equal amount comes from the 460,000 b/d Aramco/TotalEnergies' Satorp refinery in Jubail each year.

But the war has disrupted coke supplies and loading from Jubail, because vessels can only reach the refinery on the Mideast Gulf coast by traveling through the strait of Hormuz. Many vessel owners are afraid to transit though the strait because Iran has been attacking these ships.

At least one Jubail cargo that was supposed to arrive in India in March is likely stuck in the Mideast Gulf because of the war, said an Indian cement buyer.

Data from ship tracking service Kpler do show that one vessel, the Ksl Laiyang, managed to safely exit the strait after loading coke at Jubail on 5 March, possibly because it displayed "China Owner & Crew" as its destination, a tactic other ships have also used. But even though some vessels that were already stuck in the Gulf could take the risk to move out, no vessels are likely to accept new charters to Jubail for at least the next two to three months, a trader said.

Freight rates have shot up for all seaborne routes, including from Yanbu, and are helping to push up delivered prices on an India and China basis. Additional war risk premium (AWRP) rates in the Mideast Gulf surged to around 1pc of hull and machinery value in the immediate days after the US-Israeli strikes on Iran began, up from 0.15–0.2pc of hull and machinery the week before. Bunker prices have also surged, increasing freight costs, and bunker availability is more limited in places like Singapore, posing more of a challenge to long-haul ships.

Yanbu may not remain a safe option. Yemen-based Houthi militants have expressed support for Iran and had been attacking vessels in the Red Sea last year. A return of these attacks is "likely to be a case of when not if", said Elisabeth Kendall, chair of the Yemen-based think tank Sana'a Center for Strategic Studies. Ship tracking data suggest some operators are already concerned about a potential escalation in the Red Sea and are diverting away.

In addition to raising cfr offers for Yanbu, the Mideast Gulf disruption is also supporting offer prices for US Gulf high-sulphur coke cargoes.

Argus assessed cfr India 6.5pc sulphur coke up by $5/t to a more than 27-month high of $134/t on 4 March, the first week of the war. Offers have since been scarce, with sellers struggling to secure firm freight rates from vessel owners because of the surge in bunker rates and high AWRP. But some traders are indicating that offers of US high-sulphur coke Supramax can not be made below $150/t cfr on India's west coast.

India received 13.7mn t of coke in 2025, of which 7.3mn t came from the US, while Saudi Arabia was the second largest source at almost 2.4mn t, according to data from shipbroker Interocean. The US and Saudi Arabia primarily supply high-sulphur coke to India that mostly goes into cement making.

By Ajay Modi and Lauren Masterson

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26/03/04

War supply shock further boosts coke prices

Washington, 4 March (Argus) — Petroleum coke prices jumped this week because the war in the Mideast Gulf raised freight rates and heavy crude costs and threatened to choke off Saudi Arabian fuel-grade supply for an unknown period. Prices on an fob US Gulf basis had already been moving up for three consecutive weeks as of the last assessment on 25 February. A trader was heard to have purchased a cargo in the latter half of last week, before the US and Isreal launched strikes on Iran on 28 February, at slightly below $90/t. This was about $5/t above the Argus fob US Gulf 6.5pc sulphur assessment on 25 February. Activity was relatively light, since many in the US Gulf market were awaiting an upcoming industry conference next week for an opportunity for face-to-face dealmaking. Many were also looking for the final index price for February to calculate their term contract costs for March-loading cargoes. But with the news over the weekend of war breaking out in the Mideast Gulf, "everyone is worried to remain short", a trader said. A second trader reported he had turned down a firm bid in the mid-$90s/t fob, suggesting the market has jumped by more than $10/t from the last assessment. But another said that traders turning down these fixed price bids does not necessarily mean the market is higher than that. It rather reflects caution, as their costs are index-linked with significant premiums in a period of high volatility. If the March index rises to the mid-$90s/t, many traders will have to pay refiners nearly $100/t for cargoes loading next month under their term contracts. "A lot don't want to sell fixed right now," the third trader said. "It's kind of a wait and see game. Right now is not the time to buy something if you don't have to." "It's bad if someone needs to buy this week or next week," a fourth trader said. But this trader thought many would be able to take a step back and wait to see if the situation is quickly resolved and supply normalizes. "Honestly, I think this will scare away the market," the fourth trader said. Indian buyers have largely been staying out of the market for weeks, as coke prices have been expensive compared with coal. But some may have to buy soon if they cannot fully supply their needs with domestic coke and coal and seaborne coal supply. Seaborne coal prices have also jumped since 2 March on energy supply fears, especially since QatarEnergy halted LNG production and gas prices spiked. The TTF day ahead natural gas price spiked by 66pc between 27 February and Tuesday to €53.30/MWh, although it dipped back down to €46.85/MWh by Wednesday. Higher bunker prices also raised freight rates, and market participants said it is difficult to get shipowners to quote freight, especially to west coast India, which is close to the conflict region. The ultimate effect on coke prices will depend on how long coal prices remain strong and whether there is a significant disruption in Saudi Arabian coke supply. Vessels looking to reach the Aramco/TotalEnergies' Satorp refinery in Jubail, which typically ships about 1.5mn-1.8mn t/yr of coke to China and India, must ship travel through the strait of Hormuz. Supply has already been tight in the US Gulf because of lower refinery output. The US Energy Information Administration reported record low annual production last year, even below Covid-19-impacted 2021. This was partly because of permanent refinery closures, but also a narrower light-heavy crude differential that shifted producers away from the types of crude that produce higher volumes of coke. While refiners had said they expected to run heavier slates this year, those plans were formulated before the war blocked heavy crude exports from the Mideast Gulf region. Light sweet WTI crude's premium to WCS Hardisty narrowed to $13.51/bl on 2 March, its tightest level since late December 2025, and heavy sour grades generally strengthened compared with light sweet. Fuel-grade petroleum coke exports from other origins that supplement US supply, like Venezuela and Mexico, have also been low so far this year. Venezuelan coke exports slowed after the US capture of Venezuelan president Nicolas Maduro on 3 January, and congestion at a Mexican port has also cut shipments from that supplier. The million-dollar question is, ‘What to ask for April?'", another trader said. By Lauren Masterson Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

New US 10pc tariff goes into effect

26/02/24

New US 10pc tariff goes into effect

Washington, 24 February (Argus) — A new 10pc tariff on US imports from all countries went into effect on Tuesday, replacing the emergency tariffs imposed last year that the Supreme Court struck down on 20 February. The new tariff will exempt energy, critical minerals, fertilizers and certain agricultural imports. It will also exempt imports eligible for duty-free treatment under the US-Mexico-Canada free trade agreement. The 10pc tariff will not be added on top of existing sectoral duties on steel, aluminum, copper, cars and auto parts. President Donald Trump on 20 February invoked Section 122 of the 1974 Trade Expansion Act to impose the 10pc tariff. A day later, Trump posted on his social media platform that he would raise the rate to 15pc, but the social media post does not have legal force. The US will assess the Section 122 duty at the 10pc level, the Customs and Border Protection (CBP) agency said late on Monday. The law cited by Trump allows him to maintain the 10pc tariff for a period of 150 days, unless the US Congress authorizes an extension. CBP also said it will stop collecting the invalidated emergency tariffs effective on Tuesday. The agency said it was ready to "implement current and any forthcoming executive actions as directed by the president" with regard to refunding an estimated $175bn in tariffs the US Supreme Court said were imposed unlawfully. Trump said he is expecting a years-long court fight over refunds. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Indian cement makers raise domestic coal use in January

26/02/23

Indian cement makers raise domestic coal use in January

Singapore, 23 February (Argus) — Domestic thermal coal supplies to Indian cement makers rose in January, both year on year and month on month, as producers expanded coal consumption to benefit from its cost advantage over petroleum coke. Cement makers received 950,000t of domestic coal in January, up by 4pc from a year earlier, India's coal ministry data show. Receipts in April 2025-January 2026 — the first ten months of India's April 2025-March 2026 fiscal year — rose 22pc on the year to 8.23mn t. January receipts rose by 10.5pc from 860,000t in December 2025, partly supported by a seasonal uptick in cement output and demand. Leading Indian cement makers reported higher year-on-year sales in October-December 2025, resulting in increased fuel consumption. A cut in cement taxes may have supported sales. India — the world's second-largest cement producer after China — reduced the goods and services tax (GST) on cement from 28pc to 18pc in September 2025 to boost demand. Coal use also increased after the removal of a 400 rupees/t ($4.41/t) levy on coal from September 2025. Higher domestic coal availability has enabled cement plants to increase the coal's share in their fuel mix. Plants can switch between coal and coke depending on cost conditions. Firmness in cfr prices and offers of seaborne high-sulphur coke also have prompted some cement plants to lift domestic coal intake, although most producers still need to blend coke in certain ratios to use local coal effectively. The Argus -assessed index for the delivered India price of 6.5pc sulphur coke was last assessed at $125/t on 18 February, well above the average of $117.625/t in January. "We have started using a good amount of domestic coal in our plants and this has helped us offset the impact of the rise in coke prices," Jayakumar Krishnaswamy, managing director at leading cement maker Nuvoco Vistas told investors in January. It cut its coke use to 41pc in October-December 2025, from 48pc in the corresponding quarter of 2024. A weakening of the rupee against the dollar may also be triggering a preference for domestic coal compared with imported fuel. The rupee averaged at almost Rs90.73 to the dollar in January, compared with about Rs90 in December 2025. Indian coal supplies to non-power consumers, such as cement plants and steel mills, increased in the first ten months of the 2025-26 fiscal because of higher availability and lower demand from coal-fired power plants. Higher domestic coal supply to cement plants and a partial replacement of coke usage partly limited India's overall appetite for imported coke in 2025. Indian cement makers imported 10.67mn t of coke from origins including US and Saudi Arabia in 2025, down slightly from 10.83mn t in the year earlier, according to data from shipbroker Interocean. By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US high court strikes down Trump's tariffs: Update

26/02/20

US high court strikes down Trump's tariffs: Update

Updates with details throughout Washington, 20 February (Argus) — The US Supreme Court has thrown out most of the tariffs President Donald Trump has imposed on nearly all US trading partners, finding his ability to unilaterally impose tariffs exceeded his powers under a decades-old law. The Supreme Court's 6-3 ruling released on Friday will block Trump's ability to use tariffs under the International Emergency Economic Powers Act (IEEPA) to extract concessions from trading partners and punish countries that reject his demands. The Constitution "did not vest any part of the taxing power in the executive branch," chief justice John Roberts wrote in the majority opinion, backed by two other conservative justices and all three liberal justices. Trump, speaking hours after the court announced its ruling, raged against the justices who overturned his tariffs. "I'm ashamed of certain members of the court for not having the courage to do what's right for our country," Trump said. "It's an embarrassment to the families" of justices Neil Gorsuch and Amy Coney Barrett, he said. Trump appointed both justices during his first term. The majority opinion noted that "the Framers gave 'Congress alone' the power to impose tariffs during peacetime." Trump "must 'point to clear congressional authorization' to justify his extraordinary assertion of that power," the majority opinion said, adding that "He cannot." Trump scoffed at the opinion. "The court said that I'm not allowed to charge even one dollar under IEEPA", he said and suggested that the six justices were "swayed by foreign interests". What is affected? The Supreme Court decision affects Trump's tariffs on Mexico, Canada and China, where he cited an economic emergency created by the three countries' alleged inaction to stop the flow of fentanyl drugs into the US. The Supreme Court ruling also strikes down Trump's most extensive action — imposing tariffs of at least 10pc on nearly every US trading partner to address the "economic emergency" of persistent US trade deficits. The Supreme Court's decision also will affect the tariffs Trump imposed on imports from Brazil, US government lawyers informed the Court of International Trade last month. Trump cited Brazil's alleged suppression of freedom of speech as a reason to impose tariffs. The decision will not affect tariffs on US imports of steel, aluminum, cars and auto parts, which Trump imposed by citing well-tested legal trade authorities. Next steps Trump said he will sign an executive order later on Friday to impose a 10pc broad tariff on all US trading partners, in place of the struck down IEEPA tariffs. Trump said that action will invoke Section 122 of the 1974 Trade Act, which allows imposing tariffs of up to 15pc to address a balance of payments issue. But that legal avenue comes with limitations. The administration can impose those tariffs only for a period of 150 days. Any extensions would require explicit authorization from Congress. The Republican-led US Congress has not challenged Trump's tariff authority to date, although lawmakers have increasingly voiced concerns about the effect of tariffs on prices. The House of Representatives and the Senate have voted on separate resolutions challenging the tariffs Trump has imposed on imports from Canada and Brazil, but they have not passed any tariff legislation. "Congress and the administration will determine the best path forward in the coming weeks" with respect to tariffs, House of Representatives speaker Mike Johnson (R-Louisiana) said. But Trump likely would have trouble finding enough votes on Capitol Hill to support his tariffs. "The president must refrain from any further unilateral action on tariffs," House Democratic leader Hakeem Jeffries (D-New York) said. Trump said he does not plan to work with Congress on tariffs. "I have the right to do tariffs," he said. "We have a right to do pretty much what we want to do." The Trump administration will also quickly begin the legal process for replicating the IEEPA tariffs with "Section 202" and "Section 301" tariffs, US trade representative Jamieson Greer said, speaking alongside Trump. A "Section 232" authority allows the Commerce Department or US Trade Representative's office to determine whether imports of a product need to be curbed on national security grounds. A Section 301 investigation would target a specific country on the grounds that it is discriminating against US exports. In both cases, the process for imposing tariffs can take months. It also requires public consultation and allows carveouts for the affected US importers. The use of Section 232 and 301 authorities is "a little more complicated" than IEEPA, and "those will also be challenged", Trump's former trade representative Bob Lighthizer told participants at the Argus Americas Crude Summit in Houston on 4 February. Trump's administration will have its work cut out for it in deciding how, and whether, to refund an estimated $175bn in tariffs collected using IEEPA tariffs. Trump in his remarks suggested that the refund process could take years. Hundreds of companies, including refiners Valero and Marathon Petroleum, have already filed lawsuits seeking to recover the tariffs. The effective US tariff rate was around 13pc as of late 2025, up from 2.6pc a year earlier, according to research published by the Federal Reserve Bank of New York on 12 February. US companies and consumers paid about 90pc of the tariff burden, with only a fraction absorbed by foreign producers, the Fed researchers found. Foreign governments did not immediately react to the US court's tariff decision. "We take note of the ruling," the EU said. "We remain in close contact with the US administration as we seek clarity on the steps they intend to take in response to this ruling." By Haik Gugarats and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US Supreme Court strikes down Trump's tariffs

26/02/20

US Supreme Court strikes down Trump's tariffs

Washington, 20 February (Argus) — The US Supreme Court has thrown out most of the tariffs President Donald Trump has imposed on nearly all US trading partners, finding his ability to unilaterally impose tariffs exceeded his powers under a decades-old law. The Supreme Court's 6-3 ruling released on Friday will block Trump's ability to use tariffs under the International Emergency Economic Powers Act (IEEPA) to extract concessions from trading partners and punish countries that reject his demands. Trump has already pledged to find other ways to maintain tariffs, although the alternative leaves the administration with fewer, more time-constrained options than IEEPA, the 1977 law the administration has used to impose across-the-board tariffs on most imports. The Constitution "did not vest any part of the taxing power in the executive branch," chief justice John Roberts wrote in the majority opinion. The Supreme Court decision affects Trump's tariffs on Mexico, Canada and China, where he cited an economic emergency created by the three countries' alleged inaction to stop the flow of fentanyl drugs into the US. The Supreme Court ruling also strikes down Trump's most extensive action — imposing tariffs of 10pc and higher since 5 April 2025 on nearly every US trading partner to address the "economic emergency" of persistent US trade deficits. The Supreme Court's decision also will affect the tariffs Trump imposed on imports from Brazil, US government lawyers informed the Court of International Trade last month. Trump cited Brazil's alleged suppression of freedom of speech as a reason to impose tariffs. The decision will not affect tariffs on US imports of steel, aluminum, cars and auto parts, which Trump imposed by citing well-tested legal trade authorities. Next steps Trump and his economic team had recently stepped up public advocacy for the Supreme Court to leave his trade policy in place, highlighting the key role tariffs play in his foreign policy and in federal revenue generation. "I'm waiting for a decision from the Supreme Court," Trump said on Thursday. "Without tariffs, what would you do? Everybody would be bankrupt, everybody, the whole country would be bankrupt." But his administration has prepared for the possibility of the Supreme Court striking down the tariffs. The US Trade Representative's office in the past month quickly wrapped up trade deals with most major US trade partners that had languished for months. Trade deals struck with India, Indonesia, Taiwan and Vietnam call on those countries to increase energy and other imports from the US. The administration now is expected to try to quickly enact a 10pc tariff after the Supreme Court's decision because of the negative ruling, probably by invoking Section 122 of the 1974 Trade Act, which allows imposing tariffs of up to 15pc to address a balance of payments issue. But that legal venue comes with limitations. The administration can impose those tariffs only for a period of 150 days. Any extensions would require explicit authorization from Congress. The Republican-led US Congress has not challenged Trump's tariff authority to date, although lawmakers have increasingly voiced concerns about the effect of tariffs on prices. The House of Representatives and the Senate have voted on separate resolutions challenging the tariffs Trump has imposed on imports from Canada and Brazil, but they have not passed any tariff legislation. The money question The US has collected nearly $284bn in customs duties since the start of Trump's second term, up by $204bn from the year-earlier period, according to data from the US Treasury Department. Hundreds of companies, including refiners Valero and Marathon Petroleum, have already filed lawsuits seeking to recover the tariffs. The effective US tariff rate was around 13pc as of late 2025, up from 2.6pc a year earlier, according to research published by the Federal Reserve Bank of New York on 12 February. US companies and consumers paid about 90pc of the tariff burden, with only a fraction absorbed by foreign producers, the Fed researchers found. By Haik Gugarats and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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