Rising supply pressures mid-sulphur coke prices

: Petroleum coke
26/06/18

The fob US Gulf coast 4.5pc sulphur petroleum coke price fell to a four-month low this week, pressured by a recent rise in US mid-sulphur coke production, according to market participants.

A number of refineries across the US Gulf that typically produce high-sulphur coke, including Valero's 215,000 b/d St Charles refinery in Louisiana and Chevron's 365,500 b/d Pascagoula refinery in Mississippi, have now shifted to 4-5pc sulphur coke production, according to traders. This has led to a smaller differential between mid- and high-sulphur prices, one said.

Fob US Gulf 4.5pc sulphur coke fell to $84/t in Argus' assessment on 17 June, the lowest price for the grade since 14 January. The decline in mid-sulphur coke also narrowed its premium to the high-sulphur grade to $9/t from $12.50/t a week earlier. This is the smallest premium 4.5pc sulphur coke has held to 6.5pc sulphur since 18 March, when the spread was also $9/t.

The higher availability of mid-sulphur coke and narrower premium on an fob basis meant more buyers in Turkey were choosing this quality over high-sulphur coke. At least three cargoes of 5.5pc sulphur dry basis coke were heard to have sold at prices netting back to the mid-to-high $70s/t on an fob basis during the week, and the cfr Turkey 5.5pc sulphur assessment declined by $5/t on the week to $118.50/t. This narrowed the spread between cfr Turkey 5.5pc and 6.5pc sulphur coke to $3/t, the smallest premium since 31 December.

The recent rise in US mid-sulphur coke supply is likely in part because of higher Venezuelan crude shipments to the US. The US imported an estimated 565,000 b/d of Venezuelan crude last month, up from 118,000 b/d in May 2025, according to US Energy Information Administration data, with Valero, Phillips 66 and Chevron being the top recipients. Many refiners have looked to Venezuelan supply to replace crude from Saudi Arabia, Iraq and Kuwait, which has been unavailable for more than three months because of the war in the Middle East.

Rising heavy sour crude prices across origins in March were also expected to weigh on US high-sulphur coke production. Prices of medium-to-heavy sour crude, which produces higher-sulphur coke, rose following back-and-forth strikes between the US, Israel and Iran, narrowing its discount to lighter crude. Refined product prices also increased around the same time, which may have encouraged US refiners to switch to lighter crude slates to maximise product production.

But the recent US-Iran peace agreement could eventually revive flows of heavy sour Middle East crude to the US Gulf and may again raise high-sulphur coke production in the coming months. Still, vessel traffic through the strait of Hormuz may take several months to return to normal, according to shipbroker BRS, which could delay this shift.

By Hadley Medlock

Fob US Gulf petroleum coke prices $/t

Cfr Turkey petroleum coke prices $/t

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26/07/09

Mexican petroleum coke availability rises

Houston, 9 July (Argus) — Petroleum coke availability from Mexican-state owned Pemex's 340,000 b/d Olmeca refinery at Dos Bocas has started to rise in recent weeks, according to market participants, after operational issues contributed to reduced exports from the refinery this year. Coke production at the Dos Bocas refinery, in Tabasco state, has risen to around 4,000-5,000 t/d, a source said. While this is still lower than normal production of around 5,500-7,000 t/d, it has increased from 3,000-3,500 t/d in recent months. The refinery is expected to load at least four cargoes in July and will likely export five cargoes/month in August onward, a couple of traders said. So far in July, Dos Bocas has loaded one 18,200t cargo, according to data from ship tracking service Kpler, although the data are preliminary and subject to correction. The destination of this vessel is not currently listed. Exports from the Dos Bocas refinery have totalled 826,300t so far this year, with January posting the lowest volume of loadings at 97,000t, Kpler data show. But many sources have reported lower export volumes. According to Mexico National Institute of Statistics and Geography data compiled by Global Trade Tracker (GTT), Mexico exported no coke in January-March. April-loading US coke exports to Mexico also jumped by 46pc from a month earlier, GTT shows, suggesting limited domestic supply generated higher demand for seaborne purchases. Several incidents may have contributed to lower exports from Dos Bocas so far this year. Shipments were first cut in January after fog and rainy weather disrupted loadings , and operational issues with a short conveyor belt to move coke onto vessels may have created further issues at this time. Pemex also reported two separate fires at Dos Bocas in March and April , the latter of which sources said might have damaged a coker. The lack of exports from Dos Bocas likely led Florida utility JEA to take two US Gulf-origin cargoes from Motiva's 640,500 b/d Port Arthur refinery in April and June . JEA was able to take advantage of the extended Jones Act wavier, which allows movement of energy products between US ports on ships that are not US-built, crewed and flagged. The increase in Mexican coke availability could provide some competition for US-origin high-sulphur supply, and demand has recently increased for the material, a trader said. Mexican coke has been offered to India and China in the past couple of weeks, and another source said some Turkish buyers have shown interest in this material. Mexican coke offers were last heard in the high-$60s/t on a fob basis. A rise in Mexican high-sulphur coke supply also comes as many US Gulf refiners have shifted to mid-sulphur coke production , tightening 6.5pc sulphur supply. While the recent US-Iran peace agreement was expected to eventually revive heavy sour Middle East crude flows to the US, which would produce more higher-sulphur supply, hostilities in the Middle East have now reignited , again blocking traffic through the strait of Hormuz. By Hadley Medlock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Indian cement firms return to petroleum coke market

26/06/10

Indian cement firms return to petroleum coke market

Singapore, 10 June (Argus) — The Indian cement industry, a key buyer of seaborne petroleum coke, is switching back from thermal coal to coke for the first time this calendar year because coke has regained its competitiveness following a sharp price decline. The country's cement industry booked about 10-12 Supramaxes of high-sulphur coke, primarily US origin, over the last few weeks, said market participants. This roughly translates into a total booking of 600,000t, showing a significant uptick in appetite. For comparison, cement plants imported 1.03mn t of coke over January-April, less than one-third of the 3.27mn t received in the same period in 2025, data from shipping agency Interocean show. Most producers opted for the more competitive coal during January-April, especially high-CV NAR 6,900 kcal/kg Northern Appalachian (NAPP) coal from the US. India imported 3.65mn t of NAPP coal over January-April, up by 30pc on the year, according to trade analytics platform Kpler. Cement and brick kilns are the key users of this coal. The Argus -assessed cfr India 6.5pc sulphur coke increased for the seventh consecutive week to a 27-month high of $129/t on 25 February on the back of firm fob coke costs, three days before the US-Iran conflict broke. The conflict choked coke supplies from the 460,000 b/d Aramco/TotalEnergies' Satorp refinery in Saudi Arabia's Jubail because vessels can only reach the refinery on the Mideast Gulf coast by traveling through the strait of Hormuz. Coke output at the Saudi Aramco/Sinopec Yasref refinery in Yanbu, Saudi Arabia, was also heard to have been lower than usual in recent months. Jubail and Yanbu each typically ship about 1.8mn t/yr of coke. The supply disruption, together with higher freight rates in the aftermath of conflict and tighter fob coke supply from the US Gulf, raised delivered India coke prices further. Delivered prices of 6.5pc sulphur coke increased for twelve straight weeks since the start of 2026 to hit a three-year high of $160/t on 1 April, rising by 24pc since the US-Iran conflict started. Coke-thermal coal gap narrows Coke stayed at a premium to NAPP coal for most of this calendar year so far, prompting buyers to look for coal. NAPP coal offered a consistent discount through January-May, with the gap between two fuels hitting $15-$20/t in May. But this gap gradually narrowed since the end of May and almost disappeared early this month triggering an uptick in coke purchases. Offers of July-or August-loading coke Supramax cargoes are being made in the low-to mid-$130s/t cfr on India's west coast, while NAPP coal is being shown at $133-$134/t cfr. NAPP coal attracts a lower import duty of 2.75pc against an 11pc duty on coke, which broadly offsets the calorific value (CV) differential between the two fuels. Delivered India prices of 6.5pc sulphur coke were last marked at $135.50/t on 3 June, down by 15pc from their recent peak. Some cement plants that bought NAPP coal earlier to replace coke are selling coal from their port stocks at a profit of $5-$6/t in the retail market and booking coke cargoes as a replacement. Fuel accounts for the largest share of input cost for cement producers at 30pc. A rise in fuel costs typically pressures producers' margins unless they can fully pass on the increase in cement prices. Producers have faced challenges in raising cement prices in recent years due to large capacity additions and a fight for market share. Indian cement manufacturers use coke as fuel in their kilns, together with thermal coal. But cement firms have been buying less seaborne coke so far this year, while raising the share of domestic and imported coal in its fuel mix due to more competitive pricing. India's largest cement producer, Ultratech, cut coke in its fuel mix to 41pc during January-March, down from 54pc in the same quarter of 2025, with the company raising its use of coal, the Bombay Stock Exchange-listed firm said in April. The situation has reversed again. A procurement manager with a cement maker said that the company would choose coke and not coal if the firm needed to buy fuel in today's market because the decline has made coke competitive once again. The rising preference for coke could temporarily pressure NAPP coal, especially because demand from brick kilns is typically limited during the monsoon months of July-September, said a market participant. A trader expects limited downside for the delivered India price of NAPP coal because its production and inland transportation cost has increased due to higher fuel prices, and freight rates have remained elevated. But higher utilisation rates at US refineries and increased coke supply continue to put pressure on fob coke. US Gulf high-sulphur coke assessed by Argus dropped below $80/t fob for the first time since early February to hit $79/t on 3 June. By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

EU finance ministers eye agreement on CBAM changes

26/06/04

EU finance ministers eye agreement on CBAM changes

Brussels, 4 June (Argus) — EU finance ministers are seeking agreement on their position for legal changes to the bloc's carbon border adjustment mechanism (CBAM), extending the scope to more downstream products and adding anti-circumvention measures. Final tweaks and clarifications specify the European Commission's power to suspend CBAM for problematic sectors. The text drawn up for finance ministers, who meet on 12 June, takes account of a majority that has spoken out against giving the commission broad empowerment to temporarily remove specific goods from CBAM under a new article 27a. Diplomats noted the risks of "jeopardising" the effectiveness of CBAM and the "imprecise" scope of the powers. To bridge differences, Cyprus, chairing discussions between diplomats, has built on a previous draft to specify the conditions that the commission could use to trigger CBAM suspension. This includes average non-CBAM-related import price increases of more than 50pc compared with average prices for the same CBAM goods over the previous 10 years. Price increases would need to be sustained over a period of at least six months. If finance ministers agree on the text on 12 June, EU states would be ready for negotiations over a final legal draft with the European Parliament after summer. Cypriot diplomats suggested article 27a remains in the European Council's draft position as a "good basis" for the talks. During a first discussion, members of parliament's environment committee broadly supported deleting the new article 27a. But some members have called for partial or full CBAM suspension . The committee is expected to vote on the issue on 6 July, followed by the whole parliament in early September. Discussions on CBAM's suspension have continued following the commission's adoption last month of a fertilizer action plan, including measures such as financial relief for farmers, and assessing stockpiling options for key fertilizers and inputs. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US coke prices slide as competition heats up

26/05/27

US coke prices slide as competition heats up

Washington, 27 May (Argus) — US Gulf-origin petroleum coke prices have dropped sharply over the past week, with traders competing fiercely for buyers. A pair of Turkish cement makers closed tenders late last week, looking to secure coke ahead of a holiday in the country this week. The tenders received a larger number of offers than normal, with traders aggressively lowering numbers over the course of the bidding. One cement maker that had set its starting price for 6.5pc sulphur coke at $128/t ended up closing a deal at close to $121/t on 21 May, more than $10/t below the last assessment for this grade the previous day. And this price would net back to only the low-to-mid $80s/t on an fob US Gulf basis, since the lower draught at the cement maker's port means spot freight rates for a Supramax cargo would be in the mid-to-high $30s/t or even as high as $40/t, participants said. "It seems there is a rush among sellers to get rid of coke cargoes," one Indian buyer said. Other participants echoed this sentiment, with another cement maker saying it appeared some traders had become nervous about their stock positions at US ports. Several traders agreed that there were many prompt cargoes available for the next two months, with one company alone having at least 10 still available out of the US and Mexico for the period. Sellers were similarly chasing buyers lower in the Indian market. High-sulphur coke offers dropped sharply over the course of last week from the high $140s/t on a cfr west coast India (WCI) basis to the low $140s/t by 22 May. By 23 May, a deal had concluded at $140/t cfr WCI and deals were heard in the high $130s/t by early this week. These recent deals to India were heard to have some flexibility baked in, whether of origin, such as the option to load US or Mexican coke; timing, loading in either June or July; or cargo size, between Supramax or Panamax. But one trader said that Mexican coke is not available for July, so the deals are likely to be of US origin. "I see buyers returning to the coke market," the trader said. But "no Indian buyer will pay above $140/t cfr today on WCI." While the steep drop in prices has rekindled interest from Indian cement plants, many companies likely will want to see a further decline before making any buying decisions, since they have already restocked with coal, another trader said. "We are well covered and won't buy until the price comes down to the $120s/t cfr," a second Indian cement maker said. Rising supply meets depressed demand It is hard to say with certainty whether the recent trend is more related to rising supply out of the US Gulf or falling demand from global cement makers, since coke prices have been pricing higher than coal for several weeks, one trader said. On the supply side, coke production would be expected to rise because refiners have increased runs to take advantage of demand to export middle distillates. Valero's 380,000 b/d Port Arthur, Texas, refinery began returning to normal rates following a fire in late March. But demand has been especially weak, with coal pricing at a discount to coke in most key markets for the longest period since the height of the Covid-19 pandemic. The cfr India 6.5pc sulphur coke priced at a premium to cfr India 5,500kcal/kg coal on a heat-adjusted basis for nine weeks between 18 March and 13 May, the longest period coke had held a premium to coal in India since 2021 . In Turkey, the premium to the 6,000kcal/kg coal benchmark has held for 15 weeks since 11 February, also the longest period since 2021. Cement makers usually seek a 10-20pc discount to coal to purchase coke because of its higher sulphur content and lack of a financial market. China may return to the picture Although China has in recent months been a non-starter for sellers, with bids far below offers, the sudden steep drop in Turkey and India prices has made the Chinese market potentially more attractive. Another trader was focused on the Chinese market for offering three end-June, early-July loading US coke cargoes as prices in that market were still around $145-$150/t. But other sellers said high freight costs through the Panama Canal are keeping the Chinese market uncompetitive for now. Chinese high-sulphur fuel grade demand could pick up because domestic coal prices are set to rise after a deadly accident at a Shanxi mine triggered widespread safety checks . The mining inspections' impact on coking coal supply could tighten the market and encourage silicon carbide producers to buy more high-sulphur petroleum coke. By Lauren Masterson India, Turkey coke percent of coal % Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Indian cement makers' petcoke imports may fall in 2026

26/05/13

Indian cement makers' petcoke imports may fall in 2026

Singapore, 13 May (Argus) — The Indian cement industry's imports of fuel-grade petroleum coke may slip sharply to around 6mn t in the 2026 calendar year because producers continue to switch to competitive thermal coal, a senior cement industry executive said at the Argus India Commodities Day event in Mumbai. Cement makers in India, the world's second-largest cement market, imported 10.67mn t of coke from origins including the US and Saudi Arabia in 2025, down slightly from 10.83mn t a year earlier, according to data from shipbroker Interocean. But imports were only at 707,000t during January-March, down sharply from 2.47mn t in the year earlier. "I don't think cement makers' coke imports can cross 6mn t this year. Receipts were sharply down in the first quarter, and most cement plants have been buying imported and domestic thermal coal to replace coke because coke prices have been at a significant premium to coal after the US-Iran war started," a senior industry procurement executive said last week. India imported 2.75mn t of US thermal coal, primarily the high-calorific value (CV) NAR 6,900 kcal/kg Northern Appalachian (NAPP) coal, in the quarter ended 31 March, up by 32pc from a year earlier, data from trade analytics platform Kpler show. Cement makers prefer NAPP coal as a replacement to coke when their prices are competitive. NAPP coal is being offered in the mid-$130s/t cfr on India's west coast, compared with offers of about $150/t for the NAR 7,500 kcal/kg US high-sulphur coke. But the low import duty of 2.75pc on NAPP coal against an import tax on 11pc on coke largely offsets the CV difference between the two fuels, making this coal a preferred fuel at current prices. Indian cement makers have significantly cut coke share in their kiln fuel mix during January-March because coal prices were more competitive. This trend is likely to be more pronounced in the current quarter. India's largest cement producer, Ultratech, cut coke share in its fuel mix to 41pc during January-March, down from 54pc in the corresponding quarter of 2025 while raising coal use, the Bombay Stock Exchange-listed firm said last month. Fellow cement maker Nuvoco Vistas reduced coke use to 37pc in January-March from 52pc in the same quarter last year. Coke supplies from Middle East countries, the second-largest source after the US, have been affected due to the war, also reducing overall supplies. Coke supplies and loading from the 460,000 b/d Satorp refinery in Saudi Arabia's Jubail, jointly operated by state-controlled Saudi Aramco and TotalEnergies, have stopped since March because vessels can only reach the refinery on the Mideast Gulf coast by traveling through the strait of Hormuz. Many vessel owners are reluctant to transit though the strait because Iran has been attacking vessels there. Meanwhile, the Yasref refinery — a joint venture between Aramco and Sinopec — in Yanbu, Saudi Arabia, continues to load but refinery runs were lower, leading to a drop in coke output, maket participants said. Costlier imports, weak rupee ups domestic coal use In addition to raising imported coal use, Indian cement makers are also securing more domestic coal to replace coke since a weaker rupee has added to overall delivered costs of imported coke and coal. The Indian rupee averaged at around 90.76 rupee to the dollar in February, weakening to Rs92.90 in March and further to Rs93.40 in April. It has slipped further to Rs94.91 so far in May, implying additional cost in rupee terms. But domestic coal is priced in rupees, shielding buyers from foreign exchange swings. Cement makers received 3.53mn t of domestic coal over January-April, up by 10pc from the year earlier, according to coal ministry data. "I won't be surprised if total coke imports by cement plants falls by 50pc in 2026," a procurement executive at a second cement maker said. "We typically buy 600,000t of coke every year, but we have only booked 125,000t so far this year." But cement makers would also be quick to switch back to coke once prices become competitive compared with coal. "The shift is an emergency response to the crisis, not a structural change," said a third cement maker. "Domestic coal has come into picture due to its wide gap with seaborne fuel, but it has quality issues." By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Rising supply pressures mid-sulphur coke prices

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