The fob US Gulf 6.5pc sulphur petroleum coke price rebounded to a six-week high last week following a handful of deals concluded in the high $70s/metric tonne (t) to low $80s/t.
At the same time, however, rising freight costs following renewed hostilities between the US and Iran are keeping pressure on fob netbacks.
The Argus fob 6.5pc sulphur assessment increased by $3/t on the week of 15 July to $78/t, the highest price for this grade since 3 June, and which was the largest week-on-week increase in the assessment since 11 March, shortly after the US-Israel war on Iran first began, when the price jumped by $9/t. Interest in US-origin coke may have risen because of concerns about a more extended lack of Saudi Arabian supply in the market.
But sentiment as to market direction continues to vary widely. While some deals were done at significantly higher levels last week, other trades continued to close in the mid-$70s/t, even for some higher-quality grades. One refinery was heard to have sold at $75/t last week, $4/t lower than the sales price for a high-sulphur August-loading 50,000t cargo from another US Gulf refinery. A trader sold a cargo of 5.3pc sulphur dry-basis coke to the Mediterranean also at a netback in the mid-$70s/t. And offers to a Central American buyer were heard in the mid-$70s/t as well.
Mid-sulphur premium shrinks
The fob 4.5pc sulphur coke assessment also rose during the week but only by 50¢/t, which eroded its premium to 6.5pc sulphur coke to $3.50/t. This was down from $6/t a week earlier and the narrowest spread between the two grades since late-July 2025.
Increased production of this grade in the US Gulf may be contributing to the slower ascent and recently pressured the 4.5pc sulphur price to a four-month low.
The jump in freight costs following the latest developments in the Middle East is putting additional pressure on fob levels. The US Gulf-to-west coast India freight rate hit on 15 July its highest level since assessments began in late 2023, reaching almost $61/t, although it has since dipped again in recent days. The US Gulf-to-China route peaked at $65.45/t on 15 July but was assessed at $63.60/t on 20 July, still higher than it had been prior to the end of the US-Iran ceasefire on 8 July.
