The primary downstream consumption sectors for China’s petroleum coke products continue to be concentrated in several key areas: pre-baked anodes, fuel, carbon additives, silicon (including metallurgical silicon and silicon carbide), and graphite electrodes. Among these, the pre-baked anode sector consistently ranks first in terms of consumption volume. In recent years, both the electrolytic aluminum market and the production of silicon-based products have maintained high profit margins, fueling strong purchasing enthusiasm among downstream enterprises and serving as the main driving force behind the growth in petroleum coke consumption.

2021 China Petroleum Coke Consumption Structure Chart

In 2021, the downstream consumption sectors for China’s petroleum coke continued to include pre-baked anodes, fuel, silicon production, carbon additives, graphite electrodes, and negative electrode materials.

Looking at the whole year, profit margins in both the electrolytic aluminum sector and the metallurgical silicon and silicon carbide sectors have reached high levels, prompting enterprises to maintain a strong willingness to resume operations. However, as a highly energy-intensive industry, the overall production is significantly affected by power restrictions. Although demand cannot be fully unleashed, the demand for petroleum coke continues to grow.

In terms of fuel, against the backdrop of tight coal supplies, refineries have stepped up their own consumption, while power plants have increased their procurement volumes, resulting in robust overall demand. Additionally, in 2021, glass manufacturers enjoyed strong profits and maintained high operating rates, leading to solid demand for petroleum coke. Strong demand for negative-electrode materials has also boosted production of carbon additives. Demand for silicon electrodes remains decent, though demand for graphite electrodes used in steelmaking is only moderate.

2021 Domestic Calcined Coke Price Trend Chart

In the first half of 2021, domestic prices for low-sulfur calcined coke showed a trend of first rising and then falling. Starting in the second half of the year, demand stabilized, and calcined coke prices began to rise steadily. Supported by higher raw material prices, calcined coke prices surged significantly, with cumulative transaction prices increasing by 2,850 yuan per ton in the first quarter. In the second half of the year, downstream demand weakened due to power restrictions and dual-control policies; however, the negative-electrode material market remained robust, driving continued price increases for high-quality, low-sulfur coke. Consequently, low-sulfur calcined coke prices also rose, reaching their annual peak in the fourth quarter.

In 2021, domestic prices of medium- and high-sulfur petroleum coke generally showed a one-way upward trend. At the same time, end-use electrolytic aluminum prices reached historic highs for the year, fueling strong enthusiasm in the carbon market for aluminum production. Supported by robust demand, prices of medium-sulfur calcined coke largely maintained an upward trajectory. In early November, as raw material petroleum coke prices experienced a temporary decline, calcined coke prices saw a slight pullback; however, overall prices remained higher than those of the same period last year.

Price Trend Chart for Domestic Medium-Sulfur Coke and Prebaked Anodes in 2021

In 2021, supported by a significant surge in the end-market demand, the price of prebaked anodes rose to a high level. For the full year, the average annual price of prebaked anodes reached 4,293 yuan per ton, an increase of 1,523 yuan per ton, or 54.98%, compared to the average price in 2020.

In the first half of the year, domestic prebaked anode enterprises maintained stable operating rates, significantly influenced by raw material prices. In the second half of the year, due to dual-control policies and power restrictions in some regions, operating rates declined. Nevertheless, overall prices remained at high levels. Looking at the full year, demand for medium-sulfur coke remained steady, and the impact of medium-sulfur coke prices on prebaked anode pricing has become more pronounced. End-use electrolytic aluminum companies continued to operate at high prices, and the commissioning of new production capacity by aluminum producers provided effective support for shipments in the prebaked anode market. In December, affected by declining raw material prices, prebaked anode prices began to fall; however, over the full year, prices remained notably higher than those in the same period last year.

Trend Chart of Domestic Carbon Additive Prices in 2021

In 2021, the domestic carbon additive market saw reasonably active trading. Driven by the raw material and negative electrode material markets, carbon additive prices remained stable with moderate fluctuations in the first half of the year. Starting from the second half, as raw material prices rose, carbon additive prices also began to show a volatile upward trend.

Looking at the full year, the price of calcined coke-based carbon additives has continued to rise due to the tight supply of domestic petroleum coke—a key raw material. This is because domestic refineries are undergoing concentrated maintenance, and coal resources are also in short supply. Affected by rising raw material costs and robust downstream demand, some graphite-based carbon additive manufacturers have shifted their focus to earning processing fees for negative-electrode materials instead. As a result, the price increase of graphite-based carbon additives has lagged far behind the increase in raw material prices. In the first three quarters, prices remained largely stable, but starting in the fourth quarter, prices began to rise as demand picked up.

Price Trend Chart of Thermal-Value Power Coal and Petroleum Coke in 2021

In the first three quarters of 2021, China’s macroeconomy continued to recover steadily. Cumulative electricity consumption across the entire society rose by 12.9% year-on-year, reflecting a rapid growth in power demand. Coupled with poor hydropower generation, thermal power generation increased by 11.9% over the same period last year, driving a sharp rise in demand for coal used in power generation—the main factor behind the growth in coal consumption. Under the influence of measures such as carbon emission reduction, “dual control of energy consumption,” and restrictions on the blind development of “high-energy-consuming and high-emission” projects, production intensity in the steel, building materials, and chemical industries has gradually declined. Consequently, the growth rates of output for related products such as pig iron, coke, and cement have slowed down, leading to a corresponding decline in coal consumption in the steel and building materials sectors. Overall, coal consumption in China during the first three quarters grew rapidly year-on-year, though the growth rate has been gradually slowing down. Since the beginning of this year, the Chinese coal market has generally remained tight in terms of supply and demand, with low inventory levels at all stages of the supply chain and coal prices remaining at high levels. Supported by these high coal prices, shipments in both the domestic and imported high-sulfur fuel coke markets have been boosted, helping push petroleum coke transaction prices to record highs. Starting in the fourth quarter, as the state stepped in to regulate and intervene in the coal market, coal prices began to decline significantly. The high-sulfur coke market saw a slowdown in shipments, and consequently, import prices at ports and domestic petroleum coke prices also fell.

Overall, in 2021, demand-side procurement remained robust, and newly commissioned downstream facilities gradually began operations. Although demand slightly weakened under the impact of dual-control policies, this still provided strong support to the petroleum coke market, keeping coke prices persistently at high levels. In recent years, China's downstream demand for petroleum coke has been primarily concentrated in the pre-baked anode and electrolytic aluminum sectors. The carbon market for aluminum applications has continued to perform well, with terminal market prices remaining at elevated levels. As electrolytic aluminum enterprises maintain high operating rates, demand for petroleum coke is likely to continue increasing.