Hit by the coronavirus, petcoke prices fell as the Mediterranean market contracted. Demand declined as the cement and construction sectors reduced their output amid lockdown restrictions.
A Spain-based trader said he had heard “some inquiries over the place (Japan, Pakistan, India, China, Denmark, Guatemala, etc to name some) but not real closures yet. Not much really at Med. Only running countries are Egypt and Turkey, but both ended 2019 on high clinker stocks thus demand now is not great,” according to Platts Coal Trader International. Furthermore, no tenders were seen in Turkey or Egypt with buyers showing lacklustre motivation.
S&P Global Platts assessed CIF Turkey five per cent sulphur petcoke at US$52.50/t on Wednesday, down US$3/t WoW and down 40 per cent from US$87/t YoY – a level not seen since December 2015.
FOB US Gulf Coast 4.5 per cent mid-sulphur petcoke cargoes were heard ranging from US$38-38.50/t and 6.5 per cent high-sulphur FOB USGC were at US$34-35/t.
By the end of the year, demand from cement companies is expected to deteriorate by 10-15 per cent.
