Cost support, graphite electrode prices remain strong and stable

Cost support, graphite electrode prices remain strong and stable

Current review: On April 19, the domestic graphite electrode market operated strongly and stably. Raw material costs provide strong support for electrode prices. In addition, under the influence of the epidemic, raw materials procurement, enterprise production and spot shipment are under pressure. Spot circulation in the electrode market is limited, and enterprise production is mainly for long-term customers. Due to the new order transaction is not smooth, the price difference of electrode manufacturers is gradually emerging at present. The quotation of mainstream enterprises is still strong, however, it is not ruled out that some small factories quote at a low price.

On April 19, 2022, graphite electrode market price:

1. Ultra-high power graphite electrode φ 450 quoted 24000-24500 yuan/ton, φ 600 quoted 27000-28000 yuan/ton;

2. High power graphite electrode φ 300-500 quoted 22000-24500 yuan/ton;

3. Regular power graphite electrode φ 300-500 quoted 21000-22500 yuan/ton.

With strong cost support, raw materials are stable or rising

Petroleum coke has a good overall performance at the raw material end. Main manufacturers coke price or stable or rise, and low sulfur coke resources continue to be tight, the electrode market has strong support; Needle coke market price is firm, the main enterprise production is positive, and industry confidence is sufficient; The new single price of coal tar pitch is high in general, and the new price of enterprises is mainly rising under the support of cost and supply. In terms of graphitization, although some new production capacity has been released successively, it is mostly concentrated in the anode market. Electrode graphitization resources are stilll tight, and the processing fee is also strong.

Lack of initiative in downstream production has also reduced the demand for graphite electrodes

The start operation performance of downstream EAF steel plants continued to decline: In some areas, transportation was limited due to the epidemic, and market production was suspended and wait-and-see; Affected by market losses, some factories were shut down for maintenance. In the case of weak steel market performance, the arrival of scrap steel continues to be limited, the EAF steel plants lack production enthusiasm, and the purchase demand for graphite electrode naturally decreases. Coupled with the continuous impact of the epidemic situation in various regions, the graphite electrode market transaction performance continues to be weak.

Market forecast

In the short term, the cost side provides strong support for electrode price, moreover, in the process of rising raw materials, the profit space of enterprises has been limited, and the price support sentiment still exists. However, due to the weak performance of downstream demand and slight cost differences in each plant, the market price difference also gradually increases. In the short term, graphite electrode overall price is expected to be high and firm, and individual specifications may be adjusted slightly, contact us for more carbon market news.