Graphite electrode, can borrow carbon neutral "east wind"?

Graphite electrode is mainly made of petroleum coke and needle coke as raw materials and coal asphalt as binder through calcination, batching, kneading, molding, roasting, graphitization and machining. Graphite electrode is a kind of conductive material with high temperature resistance and low resistivity. Graphite electrode can conduct current and generate electricity, so as to melt scrap iron or other raw materials in blast furnace to produce steel and other metal products. It is mainly used in steel production. The main characteristics of graphite electrode production are long production cycle (usually lasting three to five months), high power consumption and complex production process.

Graphite electrode production process flow chart

I. Graphite electrode industry chain

The raw materials upstream of the graphite electrode industry chain are mainly petroleum coke and needle coke. The raw materials account for a large proportion of the production cost of graphite electrode, accounting for more than 65%. The key material of graphite electrode is needle coke products. The ultra-high power electrode made of needle coke can shorten the steelmaking time by 30% ~ 50% and save electricity by 10% ~ 50%, which can effectively reduce the steelmaking cost. At present, the production technology of needle coke is mainly monopolized by a few countries such as the United States and Japan, and China's needle coke products have long relied on imports. The main downstream application of graphite electrode is electric arc furnace steelmaking.

Structure diagram of graphite electrode industry chain

II. Production and marketing status of graphite electrode

Since entering the 21st century, driven by the rapid growth of the national economy and the rapid development of downstream related industries, the domestic carbon industry has developed comprehensively. In terms of traditional carbon products, China has become the world's largest producer and marketer of graphite electrodes. However, on the one hand, low-end products such as regular power graphite electrode, electrode paste, anode and cathode carbon blocks for aluminum have overcapacity and market supply exceeds demand; On the other hand, products with high technical content and high added value or special graphite in some fields, such as large-scale ultra-high-power graphite electrode, nuclear graphite, graphite for aerospace, special graphite and carbon graphite composites in various fields, have a considerable number of gaps.

Change trend of production and sales of graphite electrode from 2014 to 2020 years

III. Development Trend of graphite electrode Market

Compared with blast furnace steelmaking, electric furnace steelmaking has obvious advantages in carbon emission. Compared with iron ore steelmaking, steelmaking with 1 ton of waste steel can reduce the emission of 1.6 tons of carbon dioxide and 3 tons of solid waste. In May this year, the Ministry of industry and information technology issued the notice on printing and distributing the implementation measures for capacity replacement in the iron and steel industry, which was officially implemented on June 1. The implementation measures for capacity replacement will significantly increase the proportion of steel replacement and expand key areas for air pollution prevention and control. The new capacity replacement measures will further reduce steel capacity, consolidate the steel industry and resolve excess capacity. At the same time, the implementation of the revised replacement method will accelerate the development of EAF and steadily increase the proportion of EAF steel. "The development of EAF steel must be the general trend", and the proportion of EAF steel will increase steadily.

The consumption of graphite electrode mainly increased with the increase of the output of electric furnace steel, industrial silicon, abrasive and yellow phosphorus. The sales of graphite electrode in China showed an overall upward trend from 2016 to 2019. The sales of graphite electrode in China in 2019 was 669,000 tons, up 13.97% compared with 587,000 tons in 2018. China's graphite electrode inventory was 106,000 tons in 2019, up 45.21% year-on-year from 73,000 tons in 2018. The development of China's graphite electrode industry is basically consistent with the modernization process of China's iron and steel industry.

Development chart of China's graphite electrode Market

Ⅳ. Graphite electrode price rises under the stimulation of electric furnace demand

Graphite electrode is the main material of electric furnace. Stimulated by the demand of electric furnace, its demand is expected to further increase, and the price of graphite electrode will rise under its influence. In the foreseeable future, the demand for EAF steel, the supply and price of raw materials may remain stable, and the supply of graphite electrode is expected to remain stable. In addition, the graphite electrode market is highly concentrated, and China's major market participants will maintain stable operation in the future. Therefore, it is estimated that there will not be any substantial change in the graphite electrode market in China in the foreseeable future, and the price of high-quality ultra-high power graphite electrode is likely to maintain stable growth , consult us for more graphite electrode news.

Average price trend of graphite electrode market in recent years