Global petroleum coke market remains firm but demand slows; India weighs costs against US high-CV coal

• Tight supply persists amid US refinery closures, operational changes
  
  
• Indian demand slows, cement producers reduce stocks ahead of FY-end
  
  

The global petroleum coke market remained firm in late February 2026, but buying activity slowed as Indian cement producers reassessed fuel economics. Prices remained high amidtight supply, with US high-calorific coal -- especially Northern Appalachian (NAPP) coal -- emerging as a serious competitor to petcoke in India.

Global market remains supported

Across regions, petroleum coke prices remained elevated. US Gulf high-sulphur coke was traded around the mid-$80s/tonne (t) FOB, while delivered prices into major markets remained strong. Northwest Europe and Brazil saw delivered prices near $115/t for medium sulphur grades, reflecting steady industrial demand.

In Asia, China's demand softened after the Lunar New Year, with inventories rising and buyers cautious. Yet prices remained supported because supply growth is limited, and refinery output has not expanded meaningfully.

Overall, the global market is not rallying sharply, but it remains structurally tight.

India: high prices meet buyer resistance

India is currently the most important price driver in the seaborne market. Offers for high-sulphur petcoke into the west coast were largely in the $128-132/t CFR range, with many sellers unwilling to go lower. At the same time, freight became more competitive, which helped keep delivered prices stable even when FOB values rose.

Despite this firmness, buying activity was thin. Many cement producers have been reducing inventories ahead of the financial year-end in March, aiming to improve cash balances and present lean supply chains. At these prices, most buyers see little incentive to commit to fresh cargoes.

Restocking is expected to resume in April, when cement production typically rises for a short but strong construction window before the monsoon season slows demand. Once the rains arrive, plants usually prefer to keep inventories low unless fuel prices become especially attractive.

US NAPP coal now key competitor

The biggest shift in the market is the growing competition from US high-CV coal.

Offers for NAPP coal into India were around $123-125/t CFR, slightly below petcoke levels. Some trades took place at these prices, particularly where buyers needed immediate fuel or preferred to diversify away from expensive coke.

This competition is reshaping purchasing decisions. Cement plants require low-ash, high-calorific fuel to blend with domestic coal, which tends to be high in ash. Petcoke traditionally fills this role, but high-CV coal can substitute for part of the requirement when the price gap narrows.

With petcoke and coal now priced within a narrow band, buyers are increasingly choosing whichever option offers better short-term economics or availability.

Supply constraints keep prices elevated

Tight supply is still the main reason prices remain high. US refinery closures and operational changes have limited global coke availability, while Chinese buyers are aggressively securing non-US origin material.

China's demand is particularly important. Because US coke still faces a tariff there, Chinese buyers are competing for Middle Eastern and other non-US supplies, often bidding above Indian price levels. This leaves India heavily reliant on US Gulf material and keeps the market structurally tight.

Limited cargo availability is also evident in coal markets. Stocks of imported NAPP coal at Indian ports remain modest, and recent dispatch data show steady offtake into the domestic market. This indicates that even high-priced coal is being absorbed, supporting overall high-CV fuel prices.

Outlook: short-term pause, medium-term support

Looking ahead, the market is likely to soften slightly in the near term as buyers reduce inventories before the monsoon and delay purchases.

However, the structural picture remains supportive. Cement plants still require low-ash fuel blends, petcoke supply growth is limited, and high-CV coal prices are rising alongside coke. Even if demand pauses temporarily, the underlying supply balance suggests prices will stay firm.

India will therefore continue to anchor global petcoke trade in 2026. As long as cement demand holds and blending requirements persist, both petcoke and US high-CV coal will remain tightly linked -- competing fuels in the same economic space rather than substitutes that can fully replace each other.