Petcoke rallies and higher coal sees stable discounts

Petcoke rallies and higher coal sees stable discounts
05 September 2023


By Frank O. Brannvoll, Brannvoll Aps, Denmark

Petcoke rallied in August, driven by a lack of supply and higher coal prices led to stable discounts in the neutral zone. Petcoke with 6.5 per cent S is expected to continue in the US$90-105 range with resistance at US$95, US$105, US$115 and US$135. Support is at US$90, US$85, US$70, US$68 and US$55.The 4.5 per cent S petcoke contract is now well above US$100 as previously warned.

Steam coal and petcoke FOB prices, 2009-23 – API4 FOB Richards Bay 6000kcal/kg coal (black), 6.5% sulphur 40 HGI

USGC FOB petcoke (red) and 4.5% sulphur 40 HGI USGC FOB petcoke (blue)


The discount for 6.5 per cent S petcoke FOB sold at US$95 is at 40 per cent when compared with API4 coal sold at US$126 in the 4Q23. The CIF ARA 6.5 per cent S petcoke contract sold at US$115 is at a discount of 30 per cent, when compared with API2 coal sold at US$127.50 in the 4Q23.

Freight rates are stable with the USGC-ARA rate at US$16.50.

Published under Cement News