Coal price find supports while petcoke sees sharp fall

Coal price find supports while petcoke sees sharp fall
01 May 2023

By Frank O. Brannvoll, Brannvoll ApS, Denmark

Oil prices support the full energy complex and OPEC+ announced new production cuts totalling 1.6mb/d. Oil prices have risen from US$72/bbl to a high US$88/bbl but are now in their former range of US$80-90/bbl at US$81/bbl.

Coal prices are finding support among strong supply and are stabilising at US$132 for the API4 contract.

As expected, petcoke prices have fallen sharply below US$100, the first time since 2021, with discounts compared to coal returning to neutral following an ample supply. The 6.5 per cent S petcoke FOB contract sells at US$95 with an expected range of US$85-105. Resistance is reported at US$105, US$115, US$135, US$155 and US$180. Support is found at US$90, US$85 and US$75 while multi-year support is at US$36.

Steam coal and petcoke prices FOB - historical view 2009-23

The discount for 6.5 per cent S petcoke FOB sold at US$95 is at 37 per cent when compared with API4 coal sold at US$132 in the 3Q23. The CIF ARA 6.5 per cent S petcoke contract sold at US$116.50 is at a discount of 28 per cent, when compared with API2 coal sold at US$128 in the 3Q23.

Freight rates continue to increase with the USGC ARA rate at US$21.50.

Published under Cement News

Tagged Under: Energy petcoke coal oil gas