【Graphite Electrodes】Price Surge Begins, ‘Golden Autumn' Market Officially Kicks Off!

Recently, the steel market has experienced a wave of notable price increases, akin to the first light of dawn, with steel prices showing a clear upward trend. This momentum has injected fresh vitality into the market and driven up demand for graphite electrodes. Before the National Day holiday, steel mills have adopted phased stockpiling strategies to prepare for potential future demand, thereby improving the supply-demand balance for graphite electrodes.

On the raw materials front, the needle coke market has remained stable, with companies actively fulfilling existing orders. Meanwhile, prices for certain petroleum coke resources have seen slight adjustments, but the overall strength of upstream raw material prices continues to provide solid support for graphite electrode production.

In terms of supply, there has been no significant fluctuation in the production volumes of graphite electrode manufacturers this week. Most enterprises have chosen to maintain their current production pace to ensure consistent product quality and a stable supply.

On the demand side, the construction steel market has shown a marked rebound this week. As steel mill profits recover, the output of some electric arc furnace (EAF) enterprises has steadily increased. From a macro-policy perspective, continued policy efforts have strongly supported the sharp rise in steel prices. This surge has unleashed a restocking demand from steel mills for graphite electrodes. The dual drivers of good inventory reduction and profit improvements have provided significant positive momentum to the graphite electrode market.

Additionally, the graphite electrode market has seen multiple favorable developments recently:

1. Increased demand from the construction industry:
With the National Day holiday approaching, the construction industry may experience a rush to complete projects, leading to a short-term increase in steel demand. Moreover, adjustments in real estate policies, such as lower mortgage rates for existing homes and reduced down payment requirements for second-home loans, have effectively stimulated a recovery in the real estate market. This revival has, in turn, boosted demand for graphite electrodes and other construction materials.

2. Rising demand from the manufacturing sector:
Demand in key steel-consuming sectors such as machinery manufacturing and automotive manufacturing is gradually increasing. Particularly, the growing demand from the automotive industry, including the new energy vehicle sector, has provided strong support for the rise in steel prices. The rapid development of these industries has not only driven the steel market but also increased demand for graphite electrodes and related products.

3. Significant rebound in export volumes:
Data shows that China's graphite electrode exports in August amounted to 29,400 tons, a month-on-month increase of 60.13% and a year-on-year increase of 22.43%. As overseas steel mills resume production after the summer break, their demand for graphite electrodes has surged.

4. Optimistic future market outlook:
Recently, investors and market participants have grown increasingly optimistic about the steel industry's future. This optimism is spreading through the market, attracting more capital into the steel market, which further pushes up steel prices, thereby driving a recovery in demand for graphite electrodes.

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