Ukraine-Russia tension lifts oil, gas and coal prices while petcoke discounts improve rapidly

By Frank O. Brannvoll, Brannvoll ApS, Denmark

Since ICR’s most recent energy report, the geopolitical risk relating to Ukraine-Russia tension has lifted oil, gas and coal prices. The Indonesian exports, which results in taking out 25Mt of coal from the export market. In China prices continue to settle under the maximum level set by the NDRC.

High-sulphur (6.5%, 40HGI) FOB petcoke price, historical view 2006-22

With coal prices higher again, petcoke is seen stabilising with discounts improving rapidly and turning buyers back. Prices fluctuate widely in thin markets.

The discount for petcoke FOB 6.5 per cent sulphur and 40HGI of US$113 is at 38 per cent, up from 31 per cent (base of comparison: API4, 2Q22 – US$146). For the CIF ARA contract, which is at US$141, this is at 23 per cent, up from 11 per cent (compared with API2, 2Q22 – US$146).

Steam coal and petcoke FOB prices - historical view 2006-22