Weekly review: Graphite electrode price remained firm, exports increased slightly (5.19-5.26)

This week, China's graphite electrode market remained stable. UHP450mm specifications with 30% needle coke content mainstream quotation was 26000-27000 yuan/ton, UHP600mm specifications was 29000-30000 yuan/ton, and UHP700mm specifications was 34000-35000 yuan/ton. Since the domestic steel price has fallen by more than 300 yuan in May. Due to losses, most independent electric furnace steel plants can only operate for 8-16 hours in production. Market wait-and-see mood has increased, and the high priced trading performance was average.

Export side

According to the customs data, China's graphite electrode export volume in April was 22600 tons, a increase of 2.26% month-on-month. The top3 exporting countries: Turkey (3100 tons), Russia (2200 tons) and Germany (1700 tons).

ICC China graphite electrode price index (May 26)

Raw materials side

This week, the domestic raw material market continued to remain strong. At present, Shandong oil-based needle coke leading manufacturers' quotation remains at 14000-15000 yuan/ton; Although some specifications of petroleum coke price has dropped by 200-700 yuan, calcined petroleum coke price is stable. Northeast China calcined petroleum coke price is 11000-11500 yuan/ton, and  graphite electrode enterprises production cost remains high.

Demand side

This week, China's overall steel production decreased slightly, the construction steel price continued to decline, the impact of the epidemic and rain on demand remained, and manufacturers' confidence was obviously insufficient. However, due to the larger price decline of scrap steel this week, some enterprises actively reduce inventory to cash in, and the profits of electric furnace steel plants rebounded. Some large electric furnaces that were shut down for maintenance in the early stage resumed production. The electric furnace steel capacity utilization rate recovered to about 52%, and the demand for graphite electrodes increased slightly.

Market forecast

Judging from the current situation, the driving force for needle coke and other raw materials price-rising is insufficient in June, while the positive policy for the steel market is still difficult to realize in the short period. In addition, the traditional high-temperature off-season in June is approaching, therefore, the steel market confidence recovery still needs time. For graphite electrode, under the decreasing cost and lower expectation, controlling production and inventory is an effective measure to stabilize prices. Communicate with us about the EG market trend.