Shutdown of China’s Coker Facilities Creates Shortage in High-Sulphur Anode Coke Supply

Zhejiang Petrochemical Shutdown Hits Anode-Grade Coke Supply Chain

Zhejiang Petrochemical has halted operations at its delayed coker unit, disrupting China’s supply of high-sulphur anode-grade petroleum coke. The facility previously produced around 70,000 tons per month with a 6.5% sulfur content, playing a vital role in the calcining sector. The shutdown is expected to increase demand for alternative high-sulfur coke sources.

Alternative Suppliers Gain Attention After Supply Disruption

Refiners such as Motiva (US Gulf) and Cosmo Oil (Japan) are poised to benefit from the disruption. These suppliers offer high-sulphur petroleum coke that aligns with China’s anode-grade standards. As Zhejiang’s output falls, interest in imported feedstock is rising.

Cosmo Oil Repositions for Chinese Export Market

Cosmo Oil’s Sakai refinery, once focused on domestic demand, has shifted to the export market. The refinery is now actively selling high-sulphur coke to China at competitive prices. China imported 11,000 tons in July and 21,800 tons in August from Japan, reflecting a rapid change in global supply dynamics.

Global Anode-Grade Coke Prices Expected to Rise

With China’s domestic anode-grade coke production weakened, the global price environment is likely to tighten. Buyers are now competing for limited high-sulphur feedstock, pushing refiners to adjust supply chains and pricing strategies to meet China’s demand.