【Needle Coke】Price Increase: 800-1000 CNY/ton Rise Across the Market

After the Spring Festival, petroleum coke prices surged significantly, briefly surpassing needle coke prices in the short term. This created a strong bullish sentiment for the needle coke market, prompting numerous enterprises to adjust their prices in February, with increases of 800-1000 CNY/ton. As a result, needle coke manufacturers are now executing the new prices after fulfilling previous orders.

Currently, petroleum-based needle coke prices are as follows:

• Raw coke: 6000-6500 CNY/ton

• Calcined coke: 7500-8500 CNY/ton

With the continuous rise in petroleum-based prices, several coal-based needle coke manufacturers are closely monitoring the market, calculating costs, and starting production. As of now, three manufacturers have resumed production. For example, Baowu Carbon Materials has started production at a new 50,000-ton annual line, mainly supplying raw coke for negative electrode material companies.

Supply and Demand Analysis:

Supply Side: With rising prices, the needle coke market's overall operating rate has increased to around 35%. Major petroleum-based producers are maintaining normal production, with some coal-based needle coke plants resuming production. As the price increase continues, more manufacturers are starting production, with three coal-based needle coke plants now in operation.

Raw Materials: Coal tar prices surged significantly after the holiday, supporting higher coal tar prices. This trend is expected to continue as more coal-based needle coke producers increase their production intentions. Additionally, low-sulfur oil slurry prices are also rising due to strong demand.

Demand Side: While steelmaking electric arc furnaces are operating at low levels, graphite electrode companies face increased pressure from higher petroleum coke prices, causing them to adjust their prices by around 1000 CNY/ton. Negative electrode material companies have shown more inquiries for needle coke due to the sharp rise in petroleum coke prices. However, these companies are locked into contracts at high prices for now.

Market Outlook:

Short-term needle coke prices are expected to continue rising, with specific price increases to be confirmed as new contracts are signed in late February. The supply will increase as coal-based needle coke production ramps up. On the demand side, negative electrode material companies' orders are stable, while graphite electrode companies will continue to procure according to demand. With strong raw material prices, the needle coke market's cost support remains intact. It is expected that needle coke prices will increase by 800-1500 CNY/ton in the short term.

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