Weekly Review:  High-end raw materials prices bullishness and graphite electrode temporary small fluctuation

ICC China Graphite Electrode Price Index (Dec. 16)

This week domestic graphite electrode market price fluctuates slightly, but the quotation of mainstream manufacturers changed little. Near the end of the year, electric furnace steel operating rate began to decline, there were many inquiries for graphite electrode export, but there were few actual orders, the market is indeed facing double pressure in the short term.

However, from the situation reflected by the raw material end, this week the mainstream petroleum coke plant (Fushun No. 2 plant) ex-factory price increase 200 yuan/ton, and the prices of high-end low sulfur coke and needle coke are strong.  With the approaching of the Winter Olympic Games, many mainstream factory production will be subject to a certain degree of influence, which is bound to cause a certain tension on the supply of graphite electrode resources in the later stage. At present, according to the feedback from the market, the electrode inventory of fujian electric furnace steel plants has been almost digested in the early stage, and the number of inquiries has increased recently. However, the supply of small-size graphite electrodes is tight, the price is strong, while the current quotation of large size is a little confused.

As of this Thursday, the mainstream price of UHP450mm with 30% needle coke content on the market was 2.15-22,000 yuan/ton, the mainstream price of UHP600mm was 25,000-27,000 yuan/ton, and the price of UHP700mm was 30,000-33,000 yuan/ton.

Raw materials aspect

This week, the ex factory price of fushun No. 2 Petroleum coke plant was raised by 200 yuan/ton. As of this Thursday, Fushun Petrochemical 1#A petroleum coke quoted 5800 yuan/ton, Jinxi Petrochemical 1#B petroleum coke quoted 4600 yuan/ton, maintaining the level of last weekend, and the price of low sulfur calcined coke remained 7600-8000 yuan/ton. This week, the domestic needle coke price continues to maintain stability, and the supply of high-quality coke was still insufficient. As of this Thursday, the domestic coal-series, oi-series products mainstream market quotation was 9500-11000 yuan/ton.

Steel plants aspect

This week domestic steel price transaction slightly improved, the price of a small shock recovery, warehouse and social inventories continue to decline. Near the end of the year, due to the shortage of scrap steel, there are more limited production and maintenance in some areas in the north and southwest, while there is a slight increase in East and South China. Recently, the epidemic situation in Zhejiang and other places has little temporary impact on steel demand, but businesses are still cautious, and the end of the year is based on shipment and payment collections, so the space for steel prices to continue to rise is relatively limited.

Market forecast

High-end raw materials are still tight, late price is still likely to rise in the later stage. The graphite electrode will show a slight shock in the short term, and will still rise steadily in the future, for the forecast of graphite electrode market contact us.