January 2022 Carbon Market Briefing and post-holiday market forecast!

January Carbon Market Briefing

Carbon industry is an important raw material industry in China. Due to its excellent characteristics, it is a typical circular economy industry which can not be replaced by any metal or nonmetal materials in many special fields. Graphite electrodes take high quality petroleum coke as materials. Widely used in metallurgy, chemical industry, machinery manufacturing, aerospace, wind energy, solar energy, nuclear energy and other fields.

01

Petroleum Coke

In January, the overall shipment of petroleum coke market was good. Affected by the environmental protection of the Winter Olympics, some refineries reduced the load production of coking units, tightened the supply of petroleum coke, and boosted the continuous rise of coke price. The price of downstream electrolytic aluminum rose back, which was good for the price of petroleum coke; Some downstream aluminum carbon enterprises shut down and reduced production, but due to the low storage of raw material petroleum coke in the early stage, the downstream demand for petroleum coke still exists. It is expected that low sulfur coke price will remain stable in February. For medium and high sulfur petroleum coke, there is a downward expectation from the early to the middle of the month. The downstream demand increases at the end of the month, and the coke price is expected to rise again.

02

Calcined Coke

In January, the overall trading of calcined coke market was acceptable. Low sulfur calcined market price was stable, before the mid of January, most enterprises inventory was at a high level, and the market price was relatively stable, after that period, driven by raw materials and production reduction, the market shipment improved. The cost and demand of medium and high sulfur calcined coke are double positive, the inventory was low, and the quotation continued to rise. With the Spring Festival approaching and the Winter Olympics coming, some refineries gradually limited production and stopped production. Refineries cleared inventory before the festival, and the downstream purchasing was more enthusiastic. The trend of calcined burning price in February should be considered comprehensively based on the raw material price trend and downstream production reduction.

03

Graphite Electrode

In January, the graphite electrode market in China was stable. Graphite electrode upstream low sulfur petroleum coke prices continue to rise, graphite electrode production costs are still high. Graphite electrode downstream steel production increased, and some other steel plants have basically finished stocking before the Spring Festival, the overall demand for graphite electrode market further weakened. However, steel plants are expected to suspend production within the basic seasonal production, most will resume production at the end of holiday. After the Winter Olympics, the terminal steel demand is expected to improve, graphite electrode supply has tight expectations, it is expected that the electrode market after the holiday may be in short supply, the price is expected to rise steadily.

04

Prebaked Carbon Anode

In January, the mainstream price of Chinese prebaked anode market continued to decline, mainly due to the low raw material price in the early stage, the weakening of cost support, and the execution of orders in the market. It is expected that the price of prebaked anode in China will rise in February, mainly due to the rising prices of petroleum coke and coal pitch this month, which is good for the price of prebaked anode. The downstream demand keeps a good situation and the goods are received normally, which is generally good for the price of prebaked anode.

05

Carburant

In January, the mainstream prices of China's various grades of carburants market upward, some enterprises slightly adjust the quotation, the industry mainly delivered goods according to orders. The regional supply of general calcination went down again due to environmental protection, and the cost increased, driving the rise of industry prices. Medium and high-grade carburants are mainly driven by the stimulation of cost, some products are shipped with higher prices. The demand side still focuses on the execution of fixed orders, and the trading situation is general. With the gradual tightening of the power restriction policy and environmental protection measures in winter, the production restriction of enterprises has intensified, the cost support is strong, and the downstream demand has declined. It is expected that the price of various grades of carburants in China will rise in February due to the strong cost support.

06

Electrode Paste

In January, the market price of of China's electrode paste decreased slightly, mainly due to the upstream raw materials price decline. However, the raw materials price has been adjusted back recently, while the fluctuation is small. The calcium carbide market price in the downstream continues to decline, and calcium carbide overall supply is slightly reduced, which is bad for electrode paste enterprise. Price temporarily stable operation, to be adjusted after the festival. Entering the heating season, environmental protection pressure is strict around, raw material prices may be lower, bad for electrode paste price, market price is expected to decline in February, talking with us to know more carbon market news.