Driven by the cost, graphite electrode price rose again

Today, China's graphite electrode prices rose again, with an overall upward range of about 4.97%, and an increase of about 18.77% over the beginning of the year. At present, China's graphite electrode diameter 300-600mm mainstream price: regular power is 20000-24000 yuan/ton; High power is 22000-25000 yuan/ton; Ultra-high power is 23500-28000 yuan/ton; Ultra-high power 700mm graphite electrode is 30000-31000 yuan/ton. The factors affecting graphite electrode price increase are analyzed as follows:

1、 Graphite electrode Enterprises’ value space is occupied by high cost pressure.

On the one hand, the price of graphite electrode upstream raw material needle coke and low sulfur petroleum coke has been increased for many times recently, which is about 20%-26% higher than the price at the beginning of the year. It is reported that the market supply of high-quality needle coke and low sulfur petroleum coke is slightly tight. Among them, Fushun and Daqing high-quality low sulfur calcined petroleum coke price has reached 10300 yuan/ton, and Jinxi low sulfur calcined coke price has also reached 8100-8500 yuan/ton. In addition, under the good demand of downstream negative electrode materials for needle coke and low sulfur petroleum coke, its price is still expected to rise. On the other hand, the negative electrode market has seized part of the graphitization, baking and other process resources of graphite electrode, graphite electrode market processing cost has increased. At present, graphite electrode graphitization processing cost is about 5200 yuan/ton, as the cathode crucible resource tension increased, the cost of graphite electrode baking process is also expected to increase, graphite electrode enterprises’ cost pressure has further increased, graphite electrode market profit space is squeezed, graphite electrode enterprises actively adjusted the rise to keep pace with the cost rise.

2. Some specifications market supply is slightly tight, support graphite electrode prices to maintain the upward market

On the one hand, some graphite electrode enterprises have received a series of production restriction requirements since October 2021, such as power restriction, environmental protection control in autumn and winter, environmental protection restriction in winter and Paralympic Games, especially during the Winter Olympics in Henan, Hebei, Shanxi, Shandong and Inner Mongolia. Some enterprises have stopped production since the end of January 2022 and have just resumed production recently. It is reported that in Hebei some enterprises’ production resumption time has been delayed, superimposing the characteristics of graphite electrode long production cycle, In the short term, the overall inventory of graphite electrode enterprises remained at a low level, and some specifications’ supply continued to be tight. On the other hand, graphite electrode market cost is high. Some graphite electrode enterprises say they are cautious about the purchase of raw materials. In addition, some graphite electrode enterprises considering the winter Olympics steel restrictions and production is still not fully restored in current, and graphite electrode enterprises control the production to a certain extent. Overall, some specifications of graphite electrode market maintain a tight supply in the short-term. 

Future forecast: the short-term graphite electrode market supply will be tight, benefits still exist. However, it is reported that the terminal steel market has not recovered significantly, steel plants’ production enthusiasm is limited, graphite electrode purchasing willingness has not increased significantly, and mainly  purchase on demand. Therefore, it is expected that the short-term graphite electrode market will gradually implement the price after adjustment. Under the expectation that graphite electrode market cost may continue to increase, the overall graphite electrode market will remain upward, more graphite market infomation chat with us.