Graphite electrode weekly review: after the festival, the scope of power restriction was expanded, and graphite electrode prices continue to rise

ICC China graphite electrode price index (October 14)

After the National Day holiday, the domestic graphite electrode market prices increased comprehensively. During the festival, the ex-factory price of petroleum coke continued to rise across the board, and the quotation of domestic graphite electrode showed an upward trend, with an average increase of 1000-1500 yuan/ton compared with the pre-holiday period. 

Since September, energy consumption has been controlled in many places in China. This week, some regions of Shanxi, Henan and Hebei also began to limit power. At present, the continuous rise of raw materials and graphitization costs of electrodes, coupled with the recent power restriction, will significantly weaken the investment of resources in the later stage, and the bullish mood of electrodes in the market is high. After the festival, the resumption of production of electric furnace steel in some areas has improved, and the operating rate of electric furnace steel has increased from 46.55% before the festival to 56.07%. It is learned from some steel plants that at present, the inventory of each electrode varies from more than one month to three months.

During the festival, heavy rainfall in Shanxi and other places has greatly affected the traffic in many places, and the production of local graphite electrode enterprises has not been affected yet. However, the power restriction starting this week will make the graphitization of graphite electrode "worse" in China. According to the statistics, under the double control of energy consumption in September, 18 key graphite electrode manufacturers in China produced 47,800 tons of graphite electrodes, a decrease of 11.8% month-on-month, a decrease of 18.8% year-on-year, this situation will continue in October.

As of October 14, the mainstream price of UHP450mm specification with 30% needle coke content in the market was 19,000-195,000 yuan/ton, an increase of 1,500 yuan/ton compared with that before the festival, the mainstream price of UHP600mm specification was 22,500-24,500 yuan/ton, and the price of UHP700mm was 28,500-30,000 yuan/ton, which also increased slightly.

Raw materials

The petroleum coke market did not rest during the national day, and the ex factory price continued to rise. As of Thursday, the quotation of Fushun Petrochemical 1#A petroleum coke was 4,800 yuan/ton, up 400 yuan/ton compared with that before the festival, and the price of low sulfur calcined coke increased by 7,000-7,200 yuan/ton, up 200-300 yuan/ton compared with that before the festival. After the festival, the price of domestic needle coke also increased. By the end of this month, the mainstream quotation of domestic coal and oil products in the market was 9,500-11,000 yuan/ton, and the low quotation was increased by about 1,500 yuan/ton.

Steel plants

After the festival, the domestic steel market showed a shock trend, and the price was basically the same as that at the end of September. During the national day, some electric furnace steel plants in Jiangsu took the lead in resuming production and changed from shutdown to staggered peak production. The capacity utilization rate of electric furnace steel in East China increased significantly, while it decreased slightly in other regions. Many steel plants were affected by the reduction of scrap supply during the national day. As of October 14, the average production cost of grade III deformed steel bar of domestic independent electric furnace steel plants was 5,143 yuan/ton, an increase of 109 yuan/ton compared with that before the festival, and the average profit increased by 129 yuan/ton. The capacity utilization rate of 92 independent electric furnace steel plants in China was 56.07%, an increase of 9.52% compared with that before the festival.

Future forecast

The increase in the scope of national power rationing has brought great uncertainty to the market resource supply of graphite electrode in the later stage. Electrode manufacturers are worried about the reduction of graphitization capacity and the increase of processing costs, so they are willing to raise prices. The price of petroleum coke has been high recently, and the price of graphite electrode is expected to continue to rise, talk with us for market price detailed news.