Week Review: Raw materials price was temporarily stable, graphite electrode continued to rise in the future (11.04-11.11)

ICC China graphite electrode price index (November 11)

After the recent rise of several waves, the domestic graphite electrode market price is generally stable this week, the shipment situation is general. Affected by the snowstorm in north China, the transportation in Inner Mongolia, Liaoning and other regions was closed at high speed during this period, so the transportation of graphite electrode was also affected for several days. Electrode graphitization price continues to increase to 5500 yuan/ton (large DC), it is reported that Inner Mongolia and other places will continue to adjust the electricity later, specific measures have not been introduced. 

At present, market participants are still bullish on the future market of graphite electrode. The first reason is that the Winter Olympic Games is approaching, and the industrial production of surrounding provincial capitals will be affected; Second, with the Spring Festival approaching at the end of the year, overseas customers will prepare goods. At that time, the supply of graphite electrodes in the market will be tight; Third, the support of raw material prices.

As of November 11, the mainstream price of UHP 450mm specification with 30% needle coke in the market was 2150-22000 yuan/ton, that of UHP 600mm specification was 26000-27000 yuan/ton, and that of UHP 700mm was 32000-33000 yuan/ton.

Raw materials

The market price of raw materials was temporarily stable this week, and the transaction was OK. As of This Thursday, Fushun Petrochemical 1#A petroleum coke quoted 5500 yuan/ton, and low sulfur calcined coke was basically stable, with a quotation of 7800-8200 yuan/ton. The price of domestic needle coke changed little this week. As of This Thursday, the mainstream quotation of domestic coal and oil products in the market was 9500-11000 yuan/ton.

Steel plants

With the relief of national power rationing pressure, the production of electric furnace steel plants in East and South China has significantly resumed this week. Affected by the output level control and raw material cost, some steel plants in Southwest China are still in the state of staggered peak production, and a few steel plants in Northeast and Northwest China have stopped production in advance. According to the statistics, as of November 11, 2021, the capacity utilization rate of 92 independent electric furnace steel plants in China was 58.99%, an increase of 2.31% over last week. Domestic steel and scrap prices continued to fall sharply this week, and the cost and profit of electric furnace steel plants continued to show a double downward trend. According to statistics, as of November 11, the average profit of grade III deformed steel bar of domestic independent electric furnace steel plants was 133 yuan/ton, a decrease of 65 yuan/ton compared with last week.

Future forecast

High raw material prices and processing costs have provided strong support for graphite electrodes, and there is still room for a small increase in the later stage, talk with us to know more graphite eletrode news.