Graftech: Production and sales of graphite electrodes were booming in the first quarter

Graftech: Production and sales of graphite electrodes were booming in the first quarter

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In the first quarter of 2022, the output of graftech, the world's major graphite electrode manufacturer, reached 46000 tons, a year-on-year increase of 28%, basically the same as that in the fourth quarter of last year; The sales volume of graphite electrode reached 43000 tons, with a year-on-year increase of 16% and a month-on-month decrease of 2.3%; The capacity utilization rate of graphite electrode reached 90%, increased by 19% year-on-year and 2% month-on-month.

David Rintoul, CEO of GRAFTECH, said graphite electrode prices have risen 19% since the fourth quarter of last year. GRAFTECH has seen significant growth in sales, production and capacity utilization, who is generally satisfied with the performance in the first quarter, and the price trend of graphite electrodes continues to improve. In the first quarter, company's graphite electrode long-term association average price was close to $9600/ton, and the sales volume was 25000 tons; The non long-term graphite electrode average price was about $6000/ton higher than former, and the sales volume was 18000 tons. Due to the conflict between Ukraine and Russia, GRAFTECH has provided force majeure notices to certain of its long association customers in Russia.

Looking forward to the future market, GRAFTECH believes that the overall fundamentals of the steel industry remain strong. Capacity utilization is gradually recovering (especially in North America), with the promotion of decarbonization in the industry, the demand for graphite electrodes will continue to increase. Meanwhile, due to the heavy use of oil-based needle coke in the rapidly growing lithium battery industry, the demand for oil-based needle coke is expected to continue to grow rapidly. Therefore, GRAFTECH will take advantage of its low cost structure and a large number of vertical integration with needle coke to provide the company with a sustainable competitive advantage. Contact us to read more globle carbon market news.