Venezuelan coke sold in China, Tunisia

Spanish Market: Petroleum coke
14/07/21

At least three cargoes of Venezuelan petroleum coke have recently been sold in China and north Africa, according to market participants.

One cargo was recently delivered to the Weifang port in northeast China and is being offered to buyers, while another landed in south China and was sold to a power plant. At least one of these cargoes may have been re-exported from Turkey after sellers did not succeed in offering the supply there.

A third cargo landed in Bizerte, Tunisia, on 3 July, after loading in Venezuela's Jose and Punta Cardon ports in early June, according to ship tracking data. It was heard to have been sold to a local Tunisian cement company through a trading firm.

It was not immediately clear which company was selling the Venezuelan coke to China and Tunisia. Traders said they are hearing more and more of this coke offered in recent weeks. Buyers have also received offers for Aruban coke, but the island does not produce coke. Venezuela's state-owned oil company PdV's subsidiary Citgo recently dissolved the downstream initiatives that had intended to rehabilitate Aruba's 235,000 b/d San Nicolas refinery.

Venezuelan company Maroil Trading is offering some cargoes, according to sources. The company won a contract with PdV in 2017 to install a rail-veyor solids handling system at Jose that was intended to export the port's millions of tonnes of stockpiled coke within five years. But only a handful of cargoes have been exported since the US imposed sanctions on PdV in 2019, and most of Venezuela's coke loading infrastructure has been out of service until recently. The Petrocedeno terminal at Jose began loading coke in February, while the Punta Cardon terminal likely resumed operations around May. Jose's Petro San Felix terminal was expected to be ready to load coke in June or July, which could explain the recent increase in offers.

Although most other nations do not have their own sanctions on PdV, the US rules have caused many international companies to avoid doing business with Venezuela for fear of running afoul of the US government. Many Turkish cement plants that were offered Venezuelan coke in recent months were not willing to purchase the material, despite significant discounts, for fear that it could disrupt their business with the US, such as export cement sales. Furthermore, it is not possible for banks to process the payment for such purchases through the SWIFT international payment system.

At least one cargo has gotten stuck in limbo in the past because of the sanctions, changing destinations repeatedly before finding a buyer willing to unload the material.

The US will not substantially alter its sanctions targeting Venezuela's oil sector until Caracas holds free and fair elections, a US official said yesterday, one day after Washington issued a limited waiver allowing LPG sales.

By Lauren Masterson

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11/11/24

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US railroad-labor contract talks heat up

04/11/24

US railroad-labor contract talks heat up

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Cemex expects coke prices to continue to fall

28/10/24

Cemex expects coke prices to continue to fall

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CSX forecasts softer 4Q rail demand

17/10/24

CSX forecasts softer 4Q rail demand

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Higher coal may drive mid-sulphur coke demand

15/10/24

Higher coal may drive mid-sulphur coke demand

London, 15 October (Argus) — The premium for mid-sulphur petroleum coke on an fob US Gulf basis may widen again as higher coal prices push Turkish cement makers to this grade in order to remain within overall sulphur limits. Mid-sulphur coke could begin to be more actively traded in Turkey as buyers there seek to reduce the amount of coal in their fuel mix, with coke becoming much more price competitive, a cement producer said. Most Turkish cement plants can now use higher sulphur coke, but in order to do so, they must use a higher proportion of coal to meet emissions limits. And the number of coal trades has fallen sharply in the second half of the year. Coke's discount to coal on a delivered basis has widened as coke prices have steadily fell and coal prices rose. Cfr Turkey 5.5pc sulphur dry basis coke reached a 38pc discount to coal on a heat-adjusted basis as of Argus ' last weekly fuel-grade coke assessment, compared with a 31pc discount a month before and a 10pc discount during the same week last year. Both mid- and high-sulphur coke in Turkey are now at their widest discount to coal since 16 March 2022. Cement plants were already starting to prefer mid-sulphur over higher-sulphur material because the premium has narrowed to a multi-month low. Since the start of October, mid-sulphur coke's premium to high-sulphur coke has remained at $2.50/t in Turkey, the lowest since 27 March. The 5.5pc sulphur coke's average premium to 6.5pc sulphur on a cfr Turkey basis declined by 65pc on the year from January-September, to $4.98/t. This is slightly narrower than the premium for 4.5pc as received coke on an fob US Gulf basis, but this has also traded at a historically narrow premium to high-sulphur coke so far this year . The fob Gulf premium averaged $5.47/t year-to-date through September, falling by more than half from the same nine-month period last year. And last week it narrowed to its lowest since late August, after the 4.5pc sulphur assessment fell by $1.50/t on the week while 6.5pc sulphur prices held steady for the first week since 21 August, as spot demand emerged. The lower premium is a result of weak demand for mid-sulphur coke outside of the Mediterranean as well as higher supply of 4.5pc sulphur Venezuelan coke over the past two years. This coke still attracts demand in Turkey, India and China despite US sanctions on Venezuela's oil industry. But Chinese demand for mid-sulphur fuel coke has sputtered since last year as stocks there have climbed, leading Mediterranean buyers to lower bids, feeling that suppliers have limited options elsewhere. Some cement plants in Turkey have been lowering bids for 5.5pc sulphur coke even further to below $80/t cfr, basically in line with high-sulphur prices, which were assessed at $77.50/t last week. Two cement plants already achieved this price level for 5.8pc sulphur max coke earlier this month, purchasing a joint cargo at about $77-78/t cfr. It remains to be seen if the stronger interest in mid-sulphur coke from Turkish buyers reverses the trend of a falling spread between the two grades of coke. At least two firms this week are seeking seaborne mid-sulphur coke cargoes for November-December loading. By Alexander Makhlay Mid- to high-sulphur coke premiums $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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