Anode grade coke export prices in the international market, a material which is used in aluminium and steel industries, have slid down by $100-125/t in August 2022. The continuous reduction in aluminium prices on the London Metal Exchange (LME), has contributed to price corrections in the market. Incidentally, China is the largest producer of the anode grade, which is the highest grade of pet coke.
Price of Chinese anode with low sulphur (S<1%) in August were heard at $900/t, and for 3%S were assessed at $650/t, FOB basis. However, prices of Chinese anode coke with higher sulphur content of 6-6.5% were at $390-400/t FOB.
The demand for low-suphur coke from the battery market in China remained firm. Apart from the low-sulphur anode coke, demand for low-vanadium (V<200ppm) anode coke was higher. This restricted the use of Russian anode coke which has vanadium as high as 800-900 ppm. The same is the case with Venezuelan anode coke which has high vanadium content. An anode coke cargo from Europe with 2% sulphur and lower vanadium content (<200ppm) was imported by China at $600/t CFR basis.
Key global deals
Last month, a deal from Oman was heard destined for China at $481/tonne, CFR.
India’s Goa Carbon bought cargo last month from Oman at Paradip $455/t CFR. Further, a Russian cargo was also taken by it through China at $590/t CFR.
An Indonesian cargo was heard finalized recently at $805/T FOB and is bound for China.
Calcined pet coke offers cool down
On an overall basis, there has been a reduction in production by calcination units due to shutdown of some major calciners in Europe. Further, demand from some aluminium manufacturers has also reduced due to partial shutdowns.
Vedanta booked a 26,000-t cargo of CPC S3.5% with vanadium at 300ppm at $840/t FOB. HINDALCO also booked CPC cargo at 890-900/t, which is very close to the current market price. India’s domestic CPC prices have also been reduced after the fall in RPC prices by INR 7,850/t.
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