Market is positive, graphite electrode market trading well

Market Overview: This week China graphite electrode market mainstream price remains stable as a whole, some specifications increased slightly. The price increase this week is mainly reflected in the regular power graphite electrode. On the one hand, the price of raw material low sulfur petroleum coke continues to be high. According to the feedback of graphite electrode enterprises. Jinxi low sulfur calcined coke price has risen to 8100 yuan/ton, which puts great cost pressure on graphite electrode enterprises. On the other hand, since October 2021, graphite electrode enterprises production has been continuously limited, the market operation is insufficient, some specifications supply is tight, the supply side is good, and the supply side well supports graphite electrode price.

Price side: China's graphite electrode diameter 300-600mm mainstream price: regular power is 19,500-22,500 yuan/ton; high power is 20,500-23,500 yuan/ton; ultra-high power is 22,000-27,500 yuan/ton; ultra-high power 700mm graphite electrode is 30,000-31,000 yuan/ton. The average price of China's mainstream specification graphite electrode is 23,571 yuan/ton, up 1.23% from the same period last week, 11.86% from the same period last month, 11.86% from the beginning of the year, and 44.10% from the same period last year.

Supply side: This week China's graphite electrode market supply side is weak and tight. Due to Winter Olympics production limit time is relatively long, and production limit intensity is strong, some specifications of graphite electrode market are out of stock, and market overall supply is tight. In addition, the raw material price of the current graphite electrode market is high, enterprises are cautious in purchasing, and the downstream demand is still limited. In the short term, some graphite electrode enterprises still intend to control production.

Demand side: This week China's graphite electrode market is mainly based on demand. Affected by the winter Olympics, Paralympics and other environmental protection requirements and the current market steel price fluctuations, graphite electrode downstream steel plants are still resuming production, graphite electrode demand is limited, mainly purchasing based on demand. In addition, due to Russia and Ukraine conflict, and EU anti-dumping, graphite electrode export declined in the short term.

Cost side: This week China’s graphite electrode cost pressure is high. On the one hand, at present, raw materials price of upstream graphite electrode is high, and the price of low sulfur calcined coke and needle coke continues to rise, the raw material cost is high; On the other hand, affected by environmental protection restrictions and the anode electrode material market, at present, the resources of graphite electrode graphitization, baking and other processes are tight, graphite electrode processing costs are high and expected to continue to rise, graphite electrode cost pressure highlights.

Profit side: This week China's graphite electrode market consolidated profit is limited. On the one hand, the current graphite electrode market cost pressure is high. On the other hand, some small graphite electrode enterprises still ship individual orders lower than the market price in order to increase the market share, pulling down the overall market profit level.

Inventory side: This week China's graphite electrode market inventory is basically at the medium and low level. Affected by the long-term and strong production restriction of the Winter Olympic Games, the overall operation of the graphite electrode market is insufficient and the enterprise inventory is low.

Future forecast: At present, market supply of some specifications graphite electrode is weak and tight, steel plants resumption and graphite electrode market is expected to improve, which is conducive to maintaining a good trend in the graphite electrode market. In addition, raw materials price remains high, graphite electrode price still has room to rise, contact us to know the latest graphite market news.