【Graphite Electrode】Prices Expected to Fall by RMB 500/ton. Weak Demand, Limited Market Optimism

Market Overview

As of May 6, 2025, the overall graphite electrode market remained stable. Prices for regular, high-power, and ultra-high-power graphite electrodes ranged from RMB 14,200 to RMB 22,100/ton, unchanged from the previous working day. The average market price stood at RMB 16,085/ton, flat compared to the same period last month.

In early April, some downstream steel mills restocked modestly, and overall market activity slightly improved. However, due to unstable electrode prices, downstream buyers showed a "buy-high, avoid-low" sentiment, leading to cautious procurement. Most tenders focused on replenishing basic inventory. Under pressure from high upstream costs and sluggish demand, graphite electrode producers were cautious in offering low-price bids.

During the May Day holiday period, market activity remained subdued, with limited inquiries and purchases. Producers mainly fulfilled previous orders, while weak shipments and slow inventory reduction led to low production enthusiasm. Most enterprises maintained minimum output levels, and the market operated at generally low capacity.

Price Range

Mainstream prices for 300–600mm graphite electrodes were as follows:

1. Regular power: RMB 14,200–15,900/ton

2. High power: RMB 15,200–17,700/ton

3. Ultra-high power: RMB 15,700–18,600/ton

4. Ultra-high power 700mm: RMB 21,200–22,100/ton

Cost and Profit Analysis

Graphite electrode production costs declined slightly but remained elevated. Most product prices were below the break-even point, leaving the market in a loss-making state, with only certain specifications yielding possible profits.

1. Needle Coke: Overall market activity remained weak. As of May 6, the average price for calcined needle coke was RMB 7,936/ton, down 0.09% month-on-month. Downstream purchases were mainly based on rigid demand, with few new orders negotiated.

2. Petroleum Coke: Prices fluctuated slightly. Some low-sulfur petroleum coke prices declined on May 1. As of May 6, the average price was RMB 4,163/ton, down 3.65% month-on-month. The market trend continued downward.

3. Coal Tar Pitch: Prices kept falling. As of May 6, the average price was RMB 3,869/ton, down 14.61% month-on-month. With bearish sentiment in the coal tar sector, short-term support for pitch prices appears limited.

Demand Analysis

1. Steel Sector: End-user demand remained weak. Export tariffs added pressure, and many steel mills had not resumed operations as expected. Procurement activity was conservative and fragmented, focused on minimal restocking due to bearish sentiment.

2. Non-Steel Uses: The yellow phosphorus sector maintained stable operations with rigid demand replenishment. The metal silicon sector saw lower operating rates and weak demand, resulting in average electrode shipments.

3. Export Market: According to customs data, China's graphite electrode exports in March 2025 totaled 35,700 tons, up 83.79% month-on-month and 17.53% year-on-year. Cumulative exports from January to March reached 85,600 tons, down 1.95% year-on-year. Major export destinations in March included the UAE, Iran, and South Korea.

Market Outlook

1. Supply: The graphite electrode market is underperforming. Producers show low enthusiasm for production, with some operating intermittently based on order volume. A reduction in output may occur in the coming period.

2. Demand: Downstream industries continue to operate at low capacity, and there is little sign of demand recovery.

3. Cost: Upstream raw material prices show a downward trend, but supply-demand dynamics still exert pressure. While costs may ease somewhat in May, room for negotiation is limited.

In Summary

Market fundamentals remain weak. While major producers aim to stabilize prices, low-priced resources persist. With sluggish transactions, unstable raw material costs, and weak demand, graphite electrode prices are expected to decline further by around RMB 500/ton.

Feel free to contact us anytime for more information about the Graphite Electrodes market. Our team is dedicated to providing you with in-depth insights and customized assistance based on your needs. Whether you have questions about product specifications, market trends, or pricing, we are here to help.