SMM, August 13: Raw material side: this week, trading activity in China's petroleum coke market was moderate, while market divergence intensified; low-sulphur petroleum coke prices continued to rise, while medium- and high-sulphur petroleum coke prices were under pressure. At CNOOC refineries, auction transaction prices for petroleum coke were steady to higher; purchasing demand from downstream anode material producers remained in place, boosting coke prices. PetroChina's in-factory inventory of low-sulphur petroleum coke in north-east China was low, and its EXW prices were raised by 50-60 yuan/mt this week. At Sinopec refineries, downstream purchasing demand recovered; supported by buying from anode material producers, low-sulphur petroleum coke cargoes in the Yangtze River region saw smooth shipments and continued to underpin the market, while Sinopec petroleum coke offers continued to be raised. Overall shipments from independent refineries were moderate. As downstream restocking at the beginning of the month came to an end, the rise in medium- and high-sulphur petroleum coke prices slowed, and some prices came under pressure. The latest SMM data showed that the #1 petroleum coke spot price index in north-east China came in at 4,602.78 yuan/mt (up 1.13% WoW), the #2 petroleum coke spot price index in Shandong at 4,281.67 yuan/mt (up 0.17% WoW), the #3 petroleum coke spot price index in Shandong at 3,822.90 yuan/mt (down 1.59% WoW), and the #4 petroleum coke spot price index in Shandong at 2,069.45 yuan/mt (down 0.90% WoW). During the week, some domestic refineries completed maintenance and resumed operations, lifting refinery operating rates; market supply continued to increase, but demand-side purchasing interest was moderate. In particular, anode material producers continued to buy, supporting further gains in low-sulphur petroleum coke prices; rigid restocking demand for carbon used in aluminum production remained, forming a floor for medium-sulphur petroleum coke. Petroleum coke prices are expected to remain divergent in the short term, with low-sulphur petroleum coke relatively firm and medium- and high-sulphur petroleum coke mainly consolidating. This week, the coal tar pitch market remained strong. As of this Thursday, the average coal tar pitch price was 4,960 yuan/mt, up 1.71% from the previous Thursday. Overall, cost support for prebaked anode remained in place this week. Supply side: prebaked anode producers continued to produce based on sales; new projects in Xinjiang, Guangxi and other regions were commissioned one after another, with new capacity being released continuously. Some producers saw operating rates pull back slightly due to maintenance, but the industry's overall supply capability improved steadily. Demand side: China's operating aluminum capacity remained high, providing stable rigid support for anode consumption. Exports: new aluminum projects in Indonesia continued to be commissioned, boosting China's anode exports. Overall, high operating rates in the aluminum sector effectively underpinned domestic demand, and the export market improved marginally; however, the concentrated commissioning of new capacity made supply grow slightly faster than demand, intensifying market competition. Commentary: This week, raw material prices in China's prebaked anode market diverged, and the industry's overall production cost edged down. According to SMM data, as of August 13, China's prebaked anode production cost was 5,697.23 yuan/mt, down 0.47% from the previous Thursday, mainly because weakening medium- and high-sulphur petroleum coke dragged down raw material costs, while firm coal tar pitch partially offset this. Looking ahead, cost-side floor support remains, but upward drivers are insufficient: low-sulphur petroleum coke is firm, medium- and high-sulphur petroleum coke are consolidating, and coal tar pitch prices are strong; overall, raw materials underpin anode prices but are unlikely to push costs upward. On the supply-demand front, high operating rates in the aluminum sector continued to underpin domestic demand, and export orders recovered at the margin, bringing incremental demand; however, the concentrated commissioning of new industry capacity and the continued expansion of supply further intensified market competition. Going forward, close attention should be paid to changes in supply-demand patterns and price trends of prebaked anode and upstream raw materials.

[SMM Lithium Battery Anode Raw Material Market Weekly Review: Demand Expectations Improve; Anode Raw Material Coke Prices Stabilize at Highs] August 13: This week, China's anode material raw material coke market prices maintained a stable trend.

SMM, August 6: Raw material side: trading in China's petroleum coke market remained strong this week, with performance diverging across grades and overall prices holding up well. Refinery side, major refineries firmed steadily, supporting the market. Auction transaction prices for petroleum coke at CNOOC's various plants continued to climb, with gains concentrated at 30-160 yuan/mt. Downstream anode material enterprises showed strong buying interest, boosting coke prices. In PetroChina's north-east China operations, in-factory inventory of low-sulphur petroleum coke was low. Coupled with the concentrated release of downstream rigid demand, EXW prices were raised by 100-300 yuan/mt this week. At Sinopec refineries, downstream procurement demand recovered, and coke cargoes for anode-material and energy-storage applications in the Yangtze River region shipped smoothly, continuously underpinning the market. Sinopec's petroleum coke offers continued to move higher. Overall shipments from independent refineries were moderate. Prices were strong initially and then weakened, with visible divergence emerging across different specifications. SMM's latest data showed that the No. 1 petroleum coke spot price index for north-east China came in at 4,551.51 yuan/mt, up 3.07% WoW; the No. 2 petroleum coke spot price index for Shandong came in at 4,274.42 yuan/mt, down 0.05% WoW; the No. 3 petroleum coke spot price index for Shandong came in at 3,884.73 yuan/mt, up 3.92% WoW; and the No. 4 petroleum coke spot price index for Shandong came in at 2,088.15 yuan/mt, down 0.23% WoW. Recently, operating rates at China's refineries picked up and market supply increased. However, demand-side purchasing interest remained moderate; coupled with stockpiling and restocking by downstream enterprises early in the month, this provided support. High- and low-sulphur grades continued to diverge, and petroleum coke prices are expected to consolidate at highs in the short term. The coal tar pitch market continued to hold up well this week. As of this Thursday, the average coal tar pitch price was 4,876.67 yuan/mt, up 3.47% from last Thursday. Overall, cost-side support for prebaked anodes continued to strengthen this week. Supply side, prebaked anode enterprises maintained a production pace based on sales. New anode projects in Xinjiang, Guangxi and other regions came online one after another, and new capacity continued to be released. Meanwhile, some enterprises saw operating rates pull back slightly due to maintenance, but overall the industry's supply capability improved steadily and supply flexibility strengthened further. Demand side, China's operating aluminum capacity remained high, providing steady, rigid support for prebaked anode consumption. Export side, new aluminum projects in Indonesia continued to come online, driving continued improvement in China's anode exports. Overall, China's new prebaked anode supply continued to materialize, high operating rates at downstream aluminum enterprises effectively underpinned domestic demand, and the export market improved at the margin. The industry's overall supply-demand balance remained stable, but as new capacity continued to be released, supply grew slightly faster than demand and the competitive landscape became increasingly intense. Brief comment: This week, China's prebaked anode raw material side improved in tandem, and the industry's overall production cost rose. According to SMM data, as of August 6, China's prebaked anode production cost was 5,723.68 yuan/mt, up 2.26% from last Thursday. In terms of prices, China's prebaked anode prices mainly edged down in August. The August prebaked anode tender price at a large aluminum producer in Shandong fell 53 yuan/mt MoM, while quotes from a major domestic prebaked anode sales enterprise showed an upward trend, up 59 yuan/mt MoM. Looking ahead, cost-side support remains in place: petroleum coke still has relatively strong bottom support, coal tar pitch market conditions are improving in tandem, and raw materials overall provide fairly good support for anode costs. Supply-demand side, high operating rates at China's aluminum enterprises continue to underpin domestic anode demand, and export orders are recovering at the margin, bringing incremental growth. However, the concentrated release of new industry capacity and sustained supply expansion are further intensifying market competition. Going forward, close attention should be paid to changes in the supply-demand pattern and price trends of prebaked anodes and upstream raw materials.

[SMM Lithium Battery Anode Raw Material Market Weekly Review: Short-Term Difficulty in Altering the More-Likely-to-Rise-Than-Fall Pattern of Anode Raw Material Coke Prices] August 6: This week, overall anode raw material coke prices in China continued their upward trend, with slight differentiation in the price increases among various categories.

Silica: This week, silica market offers remained stable. Demand side, profit pressure persists in the silicon metal industry, and some silicon metal enterprises implemented production cuts this week, causing the overall operating rate to pull back. Downstream silicon plants, raw material procurement expectations further contracted, with plants following just-in-time procurement for orders and cost control intensity staying high. Overall, the production cuts downstream have not yet been transmitted to silica prices, and the short-term silica market is expected to remain mainly stable. Silicon Coal: Silicon Coal: This week, the silicon coal market saw divergent regional trends, with caking coal prices in Xinjiang reduced by 100 yuan/mt to around 1,250 yuan/mt, while silicon coal offers in other regions remained stable. Demand side, from July to early August, operating rates at silicon metal enterprises in Xinjiang, Gansu, Inner Mongolia, and Sichuan pulled back, weakening downstream just-in-time procurement of silicon coal; the procurement growth brought by production resumptions during the rainy season in south-west China earlier weakened, leaving overall demand stimulation sluggish. Overall, the decline in downstream production further suppressed the silicon coal market, and the short-term silicon coal market remained in the doldrums. Petroleum Coke: This week, the domestic petroleum coke market saw good trading performance, with segment trends diverging and overall prices holding up well. Port spot prices of Formosa Plastics petroleum coke continued to climb, currently at around 1,550-1,600 yuan/mt. According to SMM monitoring, as of this Thursday, the price index for 1# petroleum coke in north-east China was at 4,551.51 yuan/mt, up 3.07% from last Thursday. The price index for 4# petroleum coke in Shandong was at 2,088.15 yuan/mt, down 0.23% from last Thursday. Recently, domestic refinery operating rates rose, increasing market supply, but procurement enthusiasm from the demand side was moderate, coupled with restocking and stockpiling by downstream enterprises at the start of the month providing support, high- and low-sulfur varieties saw continued divergence in trends, and short-term petroleum coke prices are expected to mainly consolidate at highs. Electrodes: Recently, carbon electrode prices edged up, with ordinary power carbon electrodes (diameter 1,272 mm) at 7,200-7,400 yuan/mt and ordinary power carbon electrodes (diameter 960-1,100 mm) at 6,300-6,600 yuan/mt, up around 200 yuan/mt from the previous period. This was mainly due to higher petroleum coke prices on the raw material side pushing up electrode production costs, with some producers moderately increasing their offers. Downstream silicon plants mainly made just-in-time procurement, and coupled with expectations of a weaker operating rate at silicon enterprises, the electrode price adjustment was mainly driven by the cost side, with the demand side remaining under pressure. Subsequent electrode prices are expected to shift to mainly remaining flat.

Recently, Qingdao Haida Ruiyuan New Energy Technology Co., Ltd. announced its plan to construct a lithium battery anode material expansion project utilizing existing completed factory facilities. The project is located east of Liugezhuang Village, Tianzhuang Town, Pingdu City, Qingdao, Shandong, with a total investment of 117 million yuan. The site covers a total area of 14,777.5 square meters, with a building area of 14,777.5 square meters. Main production equipment includes mechanical mills, roller mills, reactors, and tunnel kilns. The project primarily uses petroleum coke (needle coke), calcined petroleum coke, and asphalt as raw materials, which undergo pelletizing, roasting, and other processes to produce lithium battery anode materials. The production capacity is 80,000 tons per year.

SMM, July 30 – Raw material side, China’s petroleum coke market saw broadly improved trading this week. Low-sulphur coke remained firm and strengthened further, mainstream medium- and high-sulphur coke moved up broadly, and prices across all specifications edged higher. On the refinery side, major refineries held stable to firmer, supporting the market. CNOOC refineries’ petroleum coke auction transaction prices climbed continuously, with gains concentrated at 50-150 yuan/mt, and the more active auctions boosted bullish sentiment. PetroChina’s low-sulphur coke in-factory inventory in north-east China stayed low, and concentrated release of downstream rigid demand kept prices steady this week. Sinopec refineries saw recently improved downstream purchasing appetite, especially along the Yangtze River where ample anode material energy storage orders supported smooth refinery shipments, providing some floor to coke prices; prices were raised slightly by 10-30 yuan/mt. Independent refineries’ overall shipments performed well, earlier downstream resistance to high medium- and high-sulphur coke prices eased somewhat, restocking purchases increased, and petroleum coke prices strengthened in tandem. SMM’s latest data showed the No. 1 petroleum coke spot price index in north-east China registered 4,415.73 yuan/mt, flat WoW; Shandong’s No. 2 petroleum coke spot price index registered 4,276.73 yuan/mt, up 0.93% WoW; Shandong’s No. 3 petroleum coke spot price index registered 3,738.11 yuan/mt, up 1.12% WoW; and Shandong’s No. 4 petroleum coke spot price index registered 2,093.05 yuan/mt, up 4.46% WoW. During the week, China’s overall refinery operating load remained steady and supply growth in the market was limited; downstream end-user purchasing and stockpiling sentiment was moderate. Combined with strong support from rising crude oil costs driven by international geopolitical disruptions, and amid multiple bullish factors, the domestic petroleum coke market is expected to consolidate on a strong note in the near term, with low-sulphur coke showing stronger price resilience and structural divergence among grades persisting. The coal tar pitch market improved somewhat this week. As of Thursday this week, the average price of coal tar pitch was 4,713 yuan/mt, up 0.18% from last Thursday. Overall, prebaked anode cost support remained relatively firm this week. Supply side, prebaked anode enterprises continued their production pace of producing based on sales. New anode projects in Xinjiang, Guangxi and other regions came onstream successively, with new capacity continuing to be released. Meanwhile, some enterprises saw operating rates pull back slightly due to maintenance, but overall the industry’s supply capability improved steadily and supply flexibility increased further. Demand side, China’s operating aluminum capacity stayed high, providing steady rigid support for prebaked anode consumption. On the export side, new aluminum projects in Indonesia continued to come online, driving sustained improvement in China’s anode exports. Overall, China’s new prebaked anode supply kept materializing, high aluminum operating rates effectively supported domestic demand, and the export market improved marginally. The industry’s supply-demand balance remained generally stable, but as new capacity continued to be released, supply growth slightly outpaced demand growth, intensifying market competition. Commentary: This week, prebaked anode raw material side improved in tandem; petroleum coke market fundamentals provided solid support, coal tar pitch prices recovered slightly, and the industry’s overall production cost edged up. According to SMM data monitoring, as of July 30, China’s prebaked anode production cost stood at 5,597.13 yuan/mt, up 0.73% from last Thursday. Looking ahead, on the cost side, petroleum coke still has strong bottom support and the coal tar pitch market is expected to improve somewhat; overall raw material support for anode costs remains fairly favourable. On the supply-demand front, aluminum enterprises’ high operating rates continued to underpin domestic anode demand, while a marginal recovery in export orders brought incremental growth. However, the concentrated addition of new capacity and continuous supply release have further intensified market competition. As contract rollover approaches, overall raw material market support has eased slightly within the cycle, and prebaked anode prices are expected to decline next month; updates on specific adjustments will follow closely.

[SMM Aluminum Flash] This week, the overall trading in China's petroleum coke market improved. Low-sulphur petroleum coke remained firm and strong, while mainstream medium- and high-sulphur petroleum coke prices generally rose. Petroleum coke prices across all specifications edged higher. The latest SMM data shows that the north-east China No.1 petroleum coke spot price index was 4,415.73 yuan/mt, flat WoW; the Shandong No.2 petroleum coke spot price index was 4,276.73 yuan/mt, up 0.93% WoW; the Shandong No.3 petroleum coke spot price index was 3,738.11 yuan/mt, up 1.12% WoW; and the Shandong No.4 petroleum coke spot price index was 2,093.05 yuan/mt, up 4.46% WoW.

Silica: This week, silica prices remained stable overall. Supply side, affected by weather and other seasonal factors in some producing areas, the mining pace at mines slowed, leading to a temporary reduction in ore supply, which lent support to local markets. However, overall silica ore reserves were ample and cross-regional flows relatively sufficient, so the overall supply landscape remained loose. Demand side, the silicon metal market continued to consolidate at lows, with industry profits under pressure. Downstream silicon plants maintained only monthly just-in-time procurement orders for raw materials and strictly controlled procurement costs. In the short term, silica prices are expected to remain steady. Silicon coal: This week, the silicon coal market saw regional divergence, with the price in Shaanxi slightly lowered by 15 yuan/mt to 820-850 yuan/mt, while quotes in other regions remained stable for now. Demand side, production resumptions during the rainy season in south-west China boosted downstream silicon plants' operating rates, leading to a marginal rebound in just-in-time procurement volumes of silicon coal. However, support was limited, so the demand boost remained weak. Supply side, coal processing plants whose main product is coking coal continued to produce silicon coal according to orders, with no inventory pressure, while those mainly exporting silicon coal faced slow shipments and significant inventory pressure amid weak overall demand, resulting in a supply-demand mismatch pattern for the industry. Cost side, upstream coking coal prices have recently shown signs of softening, which will weaken cost support; thus, the silicon coal market is expected to be in the doldrums in the short term. Petroleum coke: This week, trading in China's petroleum coke market was active, with prices of petroleum coke across specifications all rising. Port spot transactions of Formosa Plastics petroleum coke diverged, with mainstream prices still at 1,450-1,500 yuan/mt. According to SMM, as of this Thursday, the Shandong 4# petroleum coke price index was reported at 2,093.05 yuan/mt, up 4.46% WoW. Recently, domestic refinery operations have been stable, procurement enthusiasm on the demand side remained moderate, and coupled with external geopolitical disruptions, petroleum coke prices are expected to consolidate on a strong note in the short term. Electrode: This week, electrodes used in silicon production remained at low prices. Supply side showed structural divergence: major producers, with captive downstream silicon plants, mainly supplied for self-use, so their inventory and shipment pressure were relatively manageable. In contrast, small and medium-sized electrode producers faced intense competition, and with the overall sluggish silicon metal market, downstream small and medium silicon plants operated at low loads, had limited orders, slow shipments, and in-factory inventory pressure. Demand side, although silicon metal production increased MoM in July, electrodes account for a relatively small proportion of smelting unit consumption, with rigid and inelastic demand; thus, downstream procurement mainly met rigid demand to maintain normal production, with limited actual growth, making it difficult to effectively boost the market. Under the dual influence of supply and demand, prices of electrode used in silicon production will remain consolidating at lows. If you would like more detailed market information and dynamics, or have other information needs, please call 021-20707889.

SMM, July 28: In H1 2026, the global petroleum coke market had originally hoped for an easing of the previous year's tight supply and a gradual recovery in production from major producing regions. However, the early-year "signs of production increase" were successively interrupted by peak maintenance season, the escalation of Middle East tensions, and multiple refinery accidents. The global supply side displayed a typical pattern of "first increase then decline, overall tightness," while the structural divergence between high- and low-sulphur coke further intensified. I. Global Overview: From "Easing Expectations" to "Tightening Reality" In 2025, the global petroleum coke market tightened significantly due to concentrated refinery closures and a rising share of light crude processing — US coke production once fell to a 20-year low. Entering 2026, benefiting from improved economics for heavy sour crude, coke output in the US Gulf Coast surged to a 13-month high in January, and the market widely expected high-sulphur coke supply to exert downward pressure on prices in Q2. But this expectation was quickly overturned. The escalation of Middle East tensions in late February pushed up crude oil and shipping costs, and combined with successive accidents at key refineries in the US and Mexico from March to April, global supply tightened again, providing solid support to prices. The repeated cycle of "production increase — then production cuts" in global petroleum coke during H1 has become the dominant theme driving price fluctuations. II. US: Hit New High Early in the Year, Production Rebounded Despite March-April Disruptions The US is a major source of global high-sulphur coke. In January 2026, benefiting from favorable economics for processing heavy sour crude, US coke production rebounded to a 13-month high, momentarily making the market optimistic about supply easing in Q2. However, March-April saw a cluster of risk events: Valero's Port Arthur refinery (380,000 b/d) halted production due to a fire on March 23, with coking units partially restarting in early April but the large crude unit not back online until month-end, forcing April shipments to be delayed to May. Meanwhile, multiple refineries in Texas also experienced frequent malfunctions — ExxonMobil's Beaumont refinery (612,000 b/d) suffered a unit malfunction on April 22, and Marathon's Galveston Bay refinery (631,000 b/d) experienced a power outage on April 14. However, the disruption did not reverse the overall production increase. According to US EIA data, marketable petroleum coke production along the US Gulf Coast reached 2 million mt in April, up 14% YoY (up from 1.8 million mt a year earlier) and up 3% MoM, pushing nationwide production up 8% YoY. The growth was mainly driven by a surge in Venezuelan crude imports (more than doubled YoY and up 15% MoM in April), coupled with US Gulf Coast refining margins hitting a more than three-year high in late March and refinery operating rates averaging 95%; some refiners maximized operations to capture high product margins. Among them, Louisiana Gulf Coast production soared 29% YoY in April, hitting a more than six-year high. In other words, US supply in H1 was characterized by a "first-down-then-up" pattern—constrained by incidents in Q1, but clearly recovering by April. III. Mexico and Venezuela: Two Steps Forward, One Step Back on the Production Increase Path Venezuela: After the US eased sanctions restrictions, exports began to rebound from February but remained below year-earlier levels, contributing limited global growth. Mexico: Following the incident at the Pemex Dos Bocas / Olmeca refinery (340,000 b/d) on April 9, which involved a coke pit fire and damage to a tower at the coker unit, market participants expect it to resume operations at 50% load. This followed a separate fatal fire at the refinery in mid-March that resulted in five deaths. The successive incidents have cast a shadow over Mexico's full-year production increase plan. However, entering H2, coke output at Dos Bocas has continued to rebound, with daily production recovering to 4,000–5,000 mt. Stable shipments to India and Asia have started since July, slightly relieving pressure on US Gulf Coast cargoes, but the growth remains limited and insufficient to alter the tight balance landscape. Overall, the "recovery-driven production increases" in both countries were offset by incidents and infrastructure bottlenecks, resulting in H1 net global supply growth that was clearly below expectations. IV. Middle East: Core Refineries Hit, Saudi High- and Low-Sulphur Petroleum Coke Exports Hindered After the Middle East situation escalated on February 28, constrained regional crude exports pushed up oil prices and narrowed the heavy-light crude spread, directly weakening the economics of coker operations. The impact on petroleum coke supply has been particularly direct: Yasref refinery (Aramco/Sinopec, 400,000 b/d, Yanbu) has lowered coke production; Satorp refinery (Aramco/TotalEnergies, 460,000 b/d, Jubail) has faced shipment disruptions, with one processing unit damaged in a night attack on April 7–8, further tightening Saudi external supply. Saudi Arabia is the primary supplier of high-sulphur petroleum coke globally, especially to India and China. Disruptions to its production and shipments have directly intensified the tightness of spot high-sulphur petroleum coke in the Asian market. Notably, the supply disruption did not ease with the end of Q2—after the US-Iran temporary ceasefire agreement broke down on July 8, shipping in the Strait of Hormuz was again obstructed, and all cargoes from Saudi Arabia’s Jubail Satorp and Yanbu refineries were delayed, extending the supply interruption into early H2. 5. Russia: Exports to China Surge Against the Trend, Refinery Attacks Add Further Uncertainty Russia is one of the core sources of China’s petroleum coke imports. In H1, amid multiple disruptions, it exhibited a trajectory of “volume increase, attacks, and renewed tightening”: Import share rose against the trend: According to General Administration of Customs data, China’s total petroleum coke imports in H1 2026 reached 8.1103 million mt (YoY -2.24%), of which Russian petroleum coke imports amounted to 1.4361 million mt, a significant YoY increase of 221,000 mt, or 18.18%, lifting its import share to 18% and making it one of the few sources to grow against the trend in H1. Predominantly high-sulphur resources with diversified transport: Currently, Russian petroleum coke specifications remain largely high-sulphur resources. In addition to traditional sea transport, some traders choose to deliver via rail into China, mainly for use in prebaked anode and anode auxiliary material applications. Refinery attacks hit supply: Recently, the Russia-Ukraine situation has continued to deteriorate, damaging delayed coking units (CDU and secondary processing units) at core refineries such as Omsk. Russia’s overall refining capacity was paralyzed by over 40% at one point, with the affected products mainly being medium-sulphur petroleum coke with 1.8% sulphur and general-grade petroleum coke around 4% sulphur. According to market surveys, the Omsk refinery is expected to gradually resume production by end-July, while the Tatarstan refinery will resume in early September, leading to near-term supply tightening expectations. Overall, Russian petroleum coke supported China’s high-sulphur petroleum coke supply in H1 by “filling the gap with volume,” but the pace of refinery production resumptions and geopolitical risks in H2 will be key variables affecting the stability of exports to China. 6. China: Independent Refinery Output High Initially, Then Low; June Operating Rate Plummets to 42.69%As the world's largest petroleum coke consumer, China's domestic coke production also came under pressure in H1. According to SMM's monthly data on independent refineries: Total H1 volume: From January to June 2026, cumulative petroleum coke production at independent refineries was approximately 4.7831 million mt, down 148,100 mt from 4.9312 million mt in the same period of 2025, a 3.0% YoY decline. Monthly trend shaped higher at the start and lower later: January output of 867,300 mt (operating rate 66.24%) was the H1 high; it then declined month by month, with June output falling to 656,200 mt and the operating rate at only 42.69%. Compared to June 2025's 761,500 mt and 60.67%, the declines were 13.80% and 17.98 percentage points, respectively. Significant regional divergence: Shandong independent refineries produced about 3.5543 million mt in H1, up 8.2% YoY; non-Shandong independent refineries produced about 1.2291 million mt, a sharp 25.3% YoY decline. Shandong's share of total independent refinery production rose to around 74.3%. Structural highlights: Low-sulphur coke was relatively strong, supported by rigid demand from anode materials and prebaked anodes, while high-sulphur coke saw limited price gains due to downstream resistance to high prices but still moved its overall center higher. The structural tightness in high-quality low-sulphur resources during H1 is likely to remain the main theme throughout the whole year. 7. China Port Spot: Low-sulphur Coke Stays High and Firm, High-sulphur Coke Diverges Tightening supply has been reflected in domestic port spot prices. According to SMM's China port petroleum coke spot price monitoring, low-sulphur and high-sulphur coke prices showed clear divergence in H1: Low-sulphur coke stayed high with marginal supplement from imports: Represented by Brazilian and Argentine low-sulphur coke, imports of high-quality resources saw significant YoY growth in port arrivals during H1, and port spot prices long operated in the range of 4,100–4,500 yuan/mt. Indonesian low-sulphur coke port spot prices drifted higher from around 4,450 yuan/mt in January, touched a high of 4,900 yuan/mt at the end of April, and then pulled back to 4,600 yuan/mt by late July. Overall, low-sulphur coke demand is rigid (anode materials, high-end prebaked anodes) while incremental supply is insufficient, with imports providing only marginal supplementation, and the supply-demand mismatch supports the price center. Divergence within high-sulphur petroleum coke: US high-sulphur petcoke prices remain relatively firm, staying above 3,000 yuan/mt, while prices for high-sulphur petcoke from Russia, Saudi Arabia, and other sources are notably lower, with some grades trading only in the 1,400–2,000 yuan/mt range. The price spread reflects differences in cargo quality, shipping costs, and port arrival stability: cargoes from the US Gulf Coast are supported by rebounding EIA production and aggressive Indian buying, whereas Saudi high-sulphur petcoke is under pressure due to shipment disruptions from the Satorp and Yanbu refineries, leading to unstable port arrivals and depressed prices. Consolidating at recent highs: Since July, port spot prices have shown a pattern of mixed performance and consolidation at highs. Low-sulphur petcoke has softened slightly in the off-season demand period, but declines have been limited; high-sulphur petcoke prices have diverged due to different shipment paces from the US Gulf and the Middle East. Overall, the cost side (import average price up 37.88% YoY) provides solid support for domestic prices, leaving relatively small downside room. This price structure indicates that the global supply tightness in H1 was not simply an "overall shortage," but rather the result of structural tightness in low-sulphur resources combined with regional mismatches in high-sulphur resources. VIII. H2 Outlook Looking ahead to H2, whether global supply can truly shift from decline to growth depends on three key variables: the pace of de-escalation in the Middle East, the pace of resumption at accident-hit refineries in the US and Mexico, and the strength of export recovery after easing of sanctions on Venezuela. Against the backdrop of the maintenance peak receding and some units planning to resume production, the supply-demand gap is expected to narrow further and gradually return to balance. However, the structural tightness of high-quality low-sulphur resources may remain the main theme throughout the year.