Graphite electrodes are essential components in electric arc furnace steelmaking. They play a vital role in arc heating, offering excellent electrical conductivity and high-temperature resistance, and are crucial for enhancing the efficiency and quality of EAF steel production.

【Steel】Supply-Demand Game Intensifies; Steel Prices Volatility Increases

Yesterday, the ferrous futures market extended its decline, led by coking coal and coke. Coking coal fell by 2.2%, coke dropped by 1.79%, and night trading continued to weaken. In the spot market, steel billet prices remained stable at RMB 2,940. Overall steel prices were weak and steady. Although some mills held prices firm, only limited low-priced resources saw moderate trading activity, while overall market transactions were subdued.

The intensifying supply-demand game has amplified market fluctuations. On the supply side, some steel mills, driven by profit, are maintaining high operating rates and even expanding production. Small and medium-sized mills in North China have increased output by optimizing processes. However, environmental and raw material issues have led to temporary maintenance at certain mills.

On the demand side, polarization is evident. Infrastructure projects continue to support construction steel demand, with transportation hub developments in southern regions boosting rebar purchases. In contrast, sluggish manufacturing has led automotive companies to reduce cold-rolled sheet orders, dragging down flat steel demand.

Macroeconomic data continue to weigh on the market. April's industrial value-added growth slowed, the Producer Price Index (PPI) declined, and the drop in new real estate starts widened. Additionally, high temperatures and frequent rainfall further restrict construction activity, leaving little room for demand recovery. Despite positive developments in tariff negotiations and government efforts to stabilize growth, they have not reversed the prevailing bearish market sentiment.

Currently, steel prices have diverged by product and region. Construction steel occasionally rebounds but lacks sustainability, while flat steel prices continue to fluctuate downward. Technically, the short-term trend for rebar futures remains bearish. Spot prices are expected to decline slightly by RMB 0–10.

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