At the end of the year, steel plant operating rate decreased slightly, graphite electrode price small fluctuations

ICC China Graphite Electrode Price Index (December 30)

In December, domestic graphite electrode market wait-and-see atmosphere was strong, the transaction was light, and the price fell slightly. Raw materials: in November, the ex-factory prices of some petroleum coke manufacturers were lowered, the mood of the graphite electrode market fluctuated to a certain extent, and traders who had stockpiling goods in the early stage and electrode factories in the second and third echelons took measures to reduce prices. In December, high-end low sulfur coke ex-factory price continued to rise, needle coke also maintained a high and stable level, and the graphite electrode market showed a slight fluctuation as a whole. The price of specifications below UHP 500mm remained stable due to tight supply, while the inventory of UHP 600mm and above large specifications was relatively large, and the price decreased.

According to customs data, China's graphite electrode exports reached 33,200 tons in November and are expected to reach 370,000 tons in 2021, exceeding the level in 2019. With the improvement of overseas resumption of work and production, the export of graphite electrode has gradually recovered in 2021. However, the anti-dumping of Graphite electrode in Europe and Asia on China will be implemented next year, which will have a certain impact on the export of relevant regions.

By the end of last month, the mainstream price of UHP450mm with 30% needle coke content on the market was 2,150-22,000 yuan/ton, maintaining the level of last month. The mainstream price of UHP600mm specification was 25,000-26,000 yuan/ton, and the price of UHP700mm was 29,000-30,000 yuan/ton, down 1000-2000 yuan/ton compared with last month.

Raw materials

In December, raw material market price rose steadily. In mid December, the ex-factory price of Fushun No. 2 petroleum coke plant increased by 200 yuan/ton, while other factories were stable.

By the end of last month, Fushun Petrochemical 1#A petroleum coke quoted 5800 yuan/ton, Jinxi Petrochemical 1#B petroleum coke quoted 4600 yuan/ton, and low sulfur calcined coke quoted 7,600-8,000 yuan/ton.

In December, the domestic needle coke price continued to maintain stability, and high-quality coke price was strong. By the end of last month, the mainstream domestic coal series, oil series products quotation in the market was 9,500-11,000 yuan/ton.

Steel  plants

In December, the domestic steel price fluctuated little, the average price was flat with last month, and the scrap steel increased first and then decreased. Electric furnace steel plant cost continued to rise and the profit narrowed significantly. By the end of December, the average profit of domestic independent electric furnace steel plant grade III deformed steel was -152 yuan/ton, 366 yuan/ton lower than last month.

The loss surface of electric furnace steel plants is further expanded, some manufacturers in southwest, northwest and east China have increased efforts to limit production, and a few electric furnace manufacturers with early maintenance have resumed production in Henan, Guizhou and Shandong.

According to statistics, by the end of December, the capacity utilization rate of domastic 92 independent electric furnace steel plants was 50.98%, down 6.73% from last month. In 2021, the output of electric furnace steel in China will reach about 118 million tons, and the total demand for graphite electrode will be about 460,000 tons.

Market Future forecast

Near the Spring Festival, large steel plants will start purchasing and preparing goods during the long holiday. The production restriction order of the Winter Olympic Games on surrounding production enterprises may be started at any time. It is expected that the graphite electrode market will remain stable in the later stage, getting the professional graphite electrode market forecast contact us.