【Graphite Electrodes】Price Increase and Recovery in EAF Utilization! Future Demand Expected to Continue Growing

During the week of February 16 to 22, the market price for ultra-high power (UHP) graphite electrodes in China remained stable. However, prices for high power (HP) and regular power (RP) graphite electrodes increased by 500 RMB per ton. The mainstream price for 400mm ultra-high power graphite electrodes is currently 16,400 RMB per ton. The mainstream price for 400mm high power graphite electrodes has risen to 16,000 RMB per ton, an increase of 500 RMB per ton. The mainstream price for 400mm regular power graphite electrodes is now 15,500 RMB per ton, also up by 500 RMB per ton.

In terms of supply, major manufacturers are operating steadily while executing orders. However, raw material costs remain high, leading to low profits and an overall low capacity utilization rate in the graphite electrode market.

On the demand side, the operating rate and capacity utilization rate of downstream electric arc furnace (EAF) plants have notably rebounded, and demand is slowly recovering. It is expected that downstream demand will continue to rise next week, leading to an anticipated increase in new orders and maintaining a strong price trend for graphite electrodes.

Currently, the average operating rate of 90 independent electric arc furnace steel mills across the country stands at 19.78%, an increase of 13.39 percentage points month-on-month and 13.11 percentage points year-on-year. Notably, the North China, East China, South China, and Southwest regions have seen considerable increases, while other regions remain stable. The average capacity utilization rate is at 13.61%, a decrease of 10.34 percentage points month-on-month but an increase of 10.9 percentage points year-on-year.

This week's significant rebound in the national independent electric arc furnace operating rate and capacity utilization is primarily due to a substantial number of steel mills resuming production before the Lantern Festival. It is anticipated that the operating rate and capacity utilization rate of independent electric arc furnace plants will continue to rise next week. 

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