Sinopec today announced another price rise for their various grades of green petroleum coke.
Anode grade coke from refineries in Shandong province have risen to RMB1830-1880 per tonne, a rise of RMB60. From the Yangtze river refineries, the price is now RMB1730-1850, while mid-high sulphur prices also rose by RMB50. Fuel grade coke price remains unchanged.
This is the third time Sinopec has raised prices since the end of the Chinese New Year holiday. At first we thought the prices may not stick, and that the transaction price would be rebated back to the then-current levels. But local independent refineries took advantage of the rise, and moved their prices up in unison.
CNPC has not moved this time, but their prices tend to be a little higher than Sinopec, so they have more time to consider their reaction.
While this may be encouraging for those looking for signs that China’s economy is on the way back up, I think that’s still a bit early to call. We understand the price rises are in response to refineries closing for turnaround. While the announcement of a further easing in banks’ Reserve requirements this week is good news, it is too early to expect to see outcomes from that decision just yet.