【Graphite Electrodes】Prices Steady, Weak Demand

Market Overview

As of July 1, 2024, prices for regular, high-power, and ultra-high-power graphite electrodes are in the range of 13,700 to 22,200 RMB/ton, remaining stable compared to the previous working day. The average market price for graphite electrodes is 15,326 RMB/ton, also holding steady. Graphite electrode production is running normally and remains stable, with enterprises producing based on orders to avoid inventory buildup. However, due to the impact of low-priced resources in the market and pressure from downstream buyers, some graphite electrode companies are less willing to ship products, focusing instead on fulfilling long-term orders. The market for graphite electrodes is weak and undergoing consolidation.

Current price range:

• Diameter 300-600mm Graphite Electrodes:

• o Regular Power: 13,700 - 15,200 RMB/ton

• o High Power: 14,200 - 16,700 RMB/ton

• o Ultra High Power: 14,700 - 18,700 RMB/ton

• Ultra High Power 700mm Graphite Electrodes: 21,200 - 22,200 RMB/ton

Market Prices 

Upstream Market

Low-Sulfur Petroleum Coke: Currently, PetroChina has uniformly adjusted its petroleum coke prices. Some low-sulfur coke is not selling well, and there were significant price adjustments this week. Specifically, prices at refineries in Northeast China have mostly been adjusted. Daqing and Fushun Petrochemical will implement listing prices in July, down 150/100 RMB/ton month-on-month, while Jinxi Petrochemical's petroleum coke price fell by 20 RMB/ton, and Jilin Petrochemical's price rose by 20 RMB/ton. Last Friday, Liaohe Petrochemical reduced its petroleum coke price by 30 RMB/ton and is continuing to tender. In the Northwest, Lanzhou Petrochemical reduced its price by 45 RMB/ton, Yumen Petrochemical by 50 RMB/ton, and Urumqi Petrochemical's 1#A price fell by 50 RMB/ton this week. In the Southwest, Yunnan Petrochemical's 4# petroleum coke price dropped by 70 RMB/ton this week.

Low-Sulfur Calcined Coke: Mainstream transaction prices for low-sulfur calcined coke (using Jinxi and Jinzhou petroleum coke as raw materials) are 3,200-3,450 RMB/ton. For calcined coke (using Fushun petroleum coke as raw material), the mainstream ex-factory transaction price is 4,460-4,650 RMB/ton. For calcined coke (using Liaohe and Binzhou CNOOC petroleum coke as raw materials), the mainstream transaction price is 3,150-3,200 RMB/ton.

Needle Coke: The overall operating rate of the Chinese needle coke market is at a medium to low level, with stable production across various manufacturers. Some petroleum-based enterprises have stopped or switched to producing petroleum coke, while most continue to produce needle coke. Currently, only one coal-based enterprise is producing green coke, with no other companies expected to start production soon. The operating rate for petroleum-based needle coke is currently 51.3%, while coal-based needle coke is at 5.76%.

Downstream Market

Steel: Downstream steel mills' demand for graphite electrodes is weak, with production mainly consuming existing inventory. Current market bidding is primarily for necessary replenishment.

Market Outlook

The graphite electrode market continues to be constrained by weak downstream demand. In the short term, there are no significant factors expected to boost downstream demand, leading graphite electrode companies to maintain a cautious stance and trade carefully. The market is expected to remain stable in the immediate future.

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