Petcoke market stable, but coal to see return to normality?

Following on from ICR’s most recent energy report, the coal rally was at an all-time high but is now experiencing a sharp retracement down due to demand destruction and forecasts of a warmer winter. It remains to be seen whether there are upside risks or whether there will be a correction to return to “normality”.

Meanwhile, the petcoke market is steady due to increased demand from India and Turkey, based on discounts. The discount for petcoke FOB 6.5 per cent sulphur when compared with API4 coal is at 37 per cent, down from 53 per cent. The discount for petcoke CIF ARA 6.5 per cent sulphur is down to 15 per cent when compared with API2 coal.


Additional context is provided by carbon and freight market data in this month's issue of International Cement Review.