Analysis

US petcoke export prices are poised to increase in 2020, according to leading global and multi-industry advisory, research and business intelligence boutique CW Group.

Despite a forecasted slight pricing decline in late 2019, demand for US petcoke is expected to grow in 2020. India, the largest export destination for US petroleum coke, is set to drive demand in 2020 as domestic gasification projects are projected to absorb close to half of India's own petroleum coke output, creating a strong market opportunity for US refiners. Additionally, the cement and steel industries in India are pushing for the removal of the import duty currently applied on petroleum coke in a bid to increase cost competitiveness as economic growth in the country has slowed down.

ÔÇ£As coal prices face downward pressure due to a slowdown in global economic activity, as also demonstrated by a record low BDI index in January, petcoke manufacturers are constrained on the quantum of price appreciation that they can demand from buyers," observes Carolina Pereira, Research and Advisory Manager at CW Group.

The market dynamics of petroleum coke pricing are somewhat more complex with its relationship to coal prices as well as the impact of freight charges on final product pricing. Even though demand for US petcoke is likely to increase, the combination of slumping coal prices and record low shipping rates is putting a major crimp on pricing initiatives of US petcoke manufacturers. This scenario is further complicated with the impact of environmental legislation around the world slowly but surely curtaining the use of high-sulfur petcoke, one of the major products of US manufacturers.

The outlook is grounded on CW Group's proven market research capabilities, which have assisted countless clients across multiple industries, from heavy-side building materials to traditional and renewable power & energy, food packaging, petrochemicals, metals & mining, industrial minerals, industrial manufacturing, bulk cargo & shipping, among others.

A leader in syndicated and customized market research solutions, CW Group works closely with credible market sources, including producers, consumers, intermediaries and other market participants to ensure the delivery of trustworthy and feasible data and also to reach the market consensus.

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For more information, placing an order, or interview inquiries, please contact Mihnea Manea, Media and Market Services Executive, CW Group, by phone at +40 723 281 704, or e-mail at [email protected].