【Needle Coke】Year-End Push: Can Prices Rise?

Since October, calcined needle coke prices have remained stable, with the supply from mainstream calcined needle coke producers consistently low. At times, graphite electrode companies even face tight availability. However, due to unstable prices for raw green needle coke and declining prices of low-sulfur slurry oil, there has been little momentum for calcined needle coke price increases.

Recently, however, the continuous rise in low-sulfur petroleum coke prices has significantly increased the production costs of downstream graphite electrodes. According to industry insiders, the ongoing price hikes for low-sulfur coke have forced multiple electrode and steel factories to negotiate price adjustments. This week, we've seen a comprehensive increase in graphite electrode prices.

Since mid-November, the operating rates of green needle coke production have increased, leading to a rise in demand for low-sulfur slurry oil. Concurrently, the rising price of regular petroleum coke has further pushed up the demand for low-sulfur slurry oil blending. These factors combined have led to fluctuations and increases in low-sulfur slurry oil prices since mid-to-late November. However, calcined needle coke prices remain stable.

Industry insiders indicate that starting December, raw material prices have surged by over 200 yuan/ton, with refineries signaling further price hikes, creating significant cost pressure. Producers report almost no calcined coke inventory on hand, making price increases imminent.

According to research and analysis, the current calcined needle coke market is relatively balanced in terms of supply and demand. The rise in raw material prices has undoubtedly pressured needle coke production costs. Meanwhile, the price increase in downstream graphite electrodes serves as a strong boost to the needle coke market, injecting confidence for a potential price rise.

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