February 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 electrode is widely used for EAF steelmaking. Widely used in metallurgy, chemical industry, machinery manufacturing, aerospace, wind energy, solar energy, nuclear energy and other fields. 

01

Petroleum Coke

In February, affected by the environmental protection and production restriction of the Winter Olympic Games, petroleum coke market overall demand was in short supply, refinery petroleum coke inventory was low, and coke price rose rapidly. At present, although the Winter Olympic Games has ended, since March and April are the peak maintenance seasons of refinery coking unit, petroleum coke supply will be further reduced. However, with the downstream resumption of production, the support of goods preparation and replenishment, the demand for petroleum coke will further increase, petroleum coke price is expected to continue to rise.

02

Calcined Coke

In February, on the one hand, raw petroleum coke price rose sharply. On the other hand, affected by the Winter Olympic Games, enterprises reduced production and production, and the supply of calcined coke decreased; The supply decreased, while the cost increased, and calcined coke market price rose. After the Winter Olympics, calcined coke enterprises had resumed production continually, and the supply of calcined coke market had increased, but the actual transaction was general; As the price of raw petroleum coke continues to rise sharply and the enterprise quotation is strong under the support of cost, calcined coke price is expected to continue to rise in the future.

03

Needle Coke

In February, the supply of needle coke decreased, high-quality needle coke resources were in short supply, which was good for price upward. Boosted by the international crude oil market, oil slurry price continued to rise, soft asphalt was strong in high price, and needle coke cost was high. The downstream demand remains unchanged, cathode materials orders were sufficient, which further benefited the price of needle coke. On the one hand, the overall market commencement is low, which has a certain support for the price. On the other hand, the commencement of downstream cathode materials and graphite electrodes is expected to rise in March, and the future price is expected to rise.

04

Graphite Electrode

In February, the prices of graphite electrode upstream raw materials, low sulfur petroleum coke, needle coke prices continued to rise, and the production cost of graphite electrode was still high. Graphite electrode downstream steel plants had resumed production after the festival, the terminal steel demand was expected to increase; Graphite electrode enterprises overall operating rate was insufficient, some specifications supply had been significantly tight. The short-term graphite electrode market was mainly dominated by early orders, and the market still mostly implemented the early price. It is expected that graphite electrode price will rise driven by multiple benefits of high cost, increased demand, tight supply.

05

Prebaked Carbon Anode

In February, due to environmental protection restrictions, prebaked carbon anode output decreased significantly compared with that in January. In addition to environmental protection factors, there was also the high cost pressure brought by the price rise of upstream raw materials. The downstream electrolytic aluminum market also ushered in a good start at the beginning of 2022, the demand for prebaked carbon anode increased. With the successful conclusion of the Winter Olympic Games, some provinces that had limited production in the early stage have successively lifted the restrictions, and some carbon enterprises have begun to resume production. At this stage, enterprises that have not resumed production may start around the middle of March. Under the effects of high cost, increased demand and other favorable factors, prebaked carbon anode market price is expected to rise in March.

06

Carburant

In February, affected by environmental protection and production restriction, some enterprises reduced production or even stopped production, delivered goods under fixed orders, resulting in tight market supply. Affected by the rising of calcined coke raw materials, calcined coke carburant market situation and graphitized carburant continued to rise, the cost side support was strong, good for carburant price rise. In the downstream, except for the surrounding areas of Beijing steel mills and foundries supply side output continued to recover, and the terminal demand continued to release. It is expected that in mid March, due to the support of cost the price of high-grade carburant will rise; Low grade carburant price may maintain stable operation without the influence of raw materials price.

07

Electrode Paste

In February, China's electrode paste market mainstream price remained stable, the overall trading was relatively light. The prices of upstream raw materials, electric calcined anthracite and medium temperature asphalt remained stable, while medium and high sulfur calcined coke prices rose. Generally speaking, the raw material end was in high price level, the downstream calcium carbide market was purchased on demand, electrode paste enterprises mostly executed the early orders. In addition, raw materials price was in high level, profit space was small, and enterprises were under pressure. It is expected the strong support of the cost end will drive electrode paste price upward.

08

Cathode Carbon Block

In February, cathode carbon blocks market supply decreased significantly. Enterprises mainly executed early orders. Raw materials cost continued to rise, especially low sulfur coke continued to show an upward trend. In addition, cathode carbon blocks have long production cycle, mostly long single orders. In general, the business pressure is obvious, the industry profit space is limited.

The supply is reduced, the cost is higher, the downstream demand is good, strongly supports cathode carbon block market. Domestic cathode carbon blocks market price is expected to rise in March, contact us for the latest carbon  market news.