【Petroleum Coke】Prices Drive Small-Spec Graphite Electrode Price Hikes

First, let's look at the market situation for small-spec ultra-high power graphite electrodes:

The main raw material for small-spec graphite electrodes is petroleum coke. Recently, the market price of petroleum coke has continued to rise, putting significant pressure on the production costs of small-spec graphite electrodes.

In the face of rising costs, some electrode manufacturers with limited inventory have lost the willingness to sell at low prices and have started adjusting their sales strategies. As a result, the prices of graphite electrodes below 500mm have shown a trend of slight increases from low levels, with price hikes ranging from 100 to 500 yuan per ton.

Additionally, small-spec graphite electrode production is mainly concentrated in Hebei, Henan, Shanxi, and Shandong provinces. Recently, these provinces have been impacted by environmental policies, causing some manufacturers to reduce or halt production, which has led to a decrease in the supply of small-spec graphite electrodes.

In contrast, the market situation for large-spec ultra-high power graphite electrodes is somewhat different:

The main raw material for large-spec graphite electrodes is needle coke. Recently, the market price of needle coke has remained relatively stable, showing no upward trend. Therefore, supported by stable raw material prices, the prices of graphite electrodes above 500mm have remained mostly stable, with a relatively balanced supply-demand relationship.

In recent years, when analyzing price hikes in the graphite electrode market, we find that each price increase has been directly driven by rising raw material prices or reduced supply. These price increases, triggered by cost-side or supply-side factors, usually have clear reasons and logic, and the price increase is typically within the market’s expected range. There has been little price increase driven by demand-side forces alone. Price hikes driven purely by cost increases are unlikely to result in significant price surges in graphite electrodes.

To achieve a substantial price increase in graphite electrodes, both supply and demand need to exert influence, leading to a supply-demand mismatch. However, such scenarios have been rare in recent years, which is why the price increase in the graphite electrode market has been relatively limited.

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