Graphite electrodes are essential in EAF steelmaking, serving as the core component for arc heating. With excellent conductivity and high-temperature resistance, they play a vital role in ensuring molten steel quality and boosting production efficiency. Controlling graphite electrodes means controlling the key to EAF steelmaking.

【Steel】Demand Remains High, Steel Companies' Profitability Improves

1.  Black Futures Prices Rebound: This week, the main contract of rebar was closed at 3,133 yuan/ton, up 61 yuan/ton from last week, a 1.99% increase; hot rolled coil main contract closed at 3,273 yuan/ton, up 72 yuan/ton from last week, a 2.25% increase; iron ore main contract closed at 764 yuan/ton, up 32 yuan/ton from last week, a 4.30% increase.

2. Apparent Consumption of the Top Five Steel Products Declined Year-on-Year This Week: The apparent consumption of the top five varieties this week was 8,795,200 tons, an increase of 45,200 tons month-on-month, but a decrease of 121,300 tons year-on-year; among them, rebar consumption decreased by 152,200 tons year-on-year, while hot rolled coil consumption increased by 139,500 tons year-on-year. Inventories of the top five steel varieties decreased this week: the total inventory of the five varieties was 18,220,300 tons, down 668,400 tons year-on-year; rebar inventory was 7,371,000 tons, down 392,550 tons year-on-year; hot rolled coil inventory was 4,315,700 tons, down 120,030 tons year-on-year.

3. Iron Production Increased: Iron production of 247 steel enterprises was 2,398,100 tons, a decrease of 10,400 tons from last week, but an increase of 15,200 tons year-on-year. Electric furnace capacity utilization rate declined: this week, the operating rate and capacity utilization rate of 87 electric arc furnaces were 63.59% and 50.36%, respectively.

4. Steel Prices Rebounded MoM: The Myspic comprehensive steel price index increased by 1.12% compared to last week. In Shanghai, rebar was 3,220 yuan/ton, up 50 yuan/ton from last week. Hot rolled coil in Shanghai was 3,330 yuan/ton, up 50 yuan/ton from last week.

5. Iron Ore Prices Rebounded MoM: This week, Platts 62% iron ore was 98.55/ton,up98.55/ton,up2.25/ton from last week. Australia shipped 15.852 million tons, down 1.454 million tons from last week; Brazil shipped 5.789 million tons, down 1.978 million tons from last week. The latest import ore inventory of 247 steel mills was 89,796,400 tons, up 610,700 tons from last week. Tianjin Quanyi metallurgical coke was 1,220 yuan/ton, stable from last week. Scrap steel was 2,080 yuan/ton, down 20 yuan/ton from last week.

6. Profitability per Ton of Steel Improved: This week, profit margins for blast furnace rebar, electric arc furnace construction steel, blast furnace hot rolled steel, and cold rolled steel fluctuated by 17, 11, 23, and 21 yuan/ton, respectively.

7. Downstream Apparent Demand: This week, domestic cement shipment was 2,725,800 tons, down 1,029,500 tons year-on-year; PVC production was 452,580 tons, up 38,780 tons year-on-year; semi-steel tire capacity utilization was 65.79%, down 14.25 percentage points year-on-year; full-steel tire capacity utilization was 61.11%, up 3.05 percentage points year-on-year.

Risk warning: Macroeconomic fluctuations beyond expectations, policies not meeting expectations, corporate operational risks, etc. 

The above content is excerpted from "[Zhongtai Steel] | Demand Remains High, Steel Companies' Profitability Improves".

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