Coal stabilising while petcoke continues lower

By Frank O. Brannvoll, Brannvoll ApS, Denmark

Since ICR’s most recent energy report, the price of coal has stabilised and started to move higher after sharp falls in November. China is still keeping a lid on prices, but as prices of gas in Europe are moving higher, new use of coal is dragged up.

High-sulphur (6.5%, 40HGI) FOB petcoke price, historical view 2005-21

Meanwhile, petcoke continues lower but is slow based on indexation. Discounts are back, increasing the demand for petcoke. In addition, there is more petcoke supply coming to the market.

Discount for petcoke FOB 6.5 percent sulphur USGC of US$122, is at 30 per cent, up from 10 per cent, when compared with API4 coal. The discount for petcoke CIF 6.5 percent sulphur USGC of US$154 is at 15 per cent, up from -15 per cent, when compared with API2 coal.

Steam coal and petcoke FOB prices - historical view 2005-21