Seaborne coke hit record high in September: Braemar

Global seaborne volume of petroleum coke reached the highest monthly total on record in September, according to shipbroker Braemar.

Petroleum coke shipments on bulk carriers reached 4.9mn t last month, which was up by 41pc from a year earlier and a record high, according to data Braemar cited from AXS vessel tracking. The majority of the year-over-year increase came from the US, the world's largest coke supplier, which shipped a total of 3.4mn t in September, an increase of 46pc on the year.

US customs data for September has not yet been released, but exports of green and calcined coke totalled 3.3mn t in August, a 25pc increase on the year, according to customs data compiled by Global Trade Tracker. Customs data includes some shipments sent over land by rail rather than on bulk carriers.

Saudi Arabia and Spain were the two other biggest exporters of petroleum coke in September, while China and India imported the most at 800,000t and 600,000t, respectively, according to the AXS data.

The increase in coke shipments has driven greater demand for smaller sized geared dry bulk vessels in the US. Supramax vessels, which hold 50,000 to 60,000 deadweight tonnes (dwt), accounted for 57pc of global coke shipments in September, while Handymax vessels of 35,000 to 50,000 dwt accounted for 28pc.

The increase in global seaborne volume is likely the result of a combination of higher petroleum coke production, as US coke production has risen close to pre-Covid-19 pandemic levels, and higher demand in certain regions as coal prices have soared and many buyers look for alternatives to Russian coal. Resilient demand for anode-grade and calcined coke likely has also played a role in higher exports.

But Braemar warns the trend may not continue into October. "Recent low water levels in the Mississippi river have disrupted barge transport from inland refineries to ports in the US Gulf and may slow exports in the coming weeks as port inventories are exhausted," the brokerage said.

The US Coast Guard has limited vessel drafts and tow sizes along some stretches of the lower Mississippi river since late September in response to the lower water conditions. This has curbed the amount of petroleum coke that can be loaded on each barge and resulted in river closures as barge groundings blocked traffic. Many refineries are located on the US inland waterway system and ship coke by barge to large terminals for seaborne export.

By Lauren Masterson