Graphite electrode weekly review: Market is in a strong wait-and-see mood, graphite electrode maintains overall stability (6.2-6.9)

This week, domestic graphite electrode market price fluctuated slightly, mainstream manufacturers quoted within a narrow range, and the overall market run in stable. The bidding price of a few steel plants was slightly lowered, and the market wait-and-see atmosphere was strong.

By the end of this week, the market mainstream price of UHP450mm specification with 30% needle coke content was 26000-27000 yuan/ton, UHP600mm specification was 29000-30000 yuan/ton, and UHP700mm specification was 34000-35000 yuan/ton.

Due to the traditional high-temperature off-season in June, the operating rate of electric furnace steel (EAF) has declined. At present, steel plants still mainly purchase on demand, and graphite electrode market overall shipment is general. In addition, petroleum coke price has been slightly lowered recently. However, due to graphite electrode long production cycle, at present, the raw materials of graphite electrodes sold in the market are purchased at a high price in the early stage. The fluctuation of raw material price will be transmitted to the downstream with a certain time lag. Therefore, it has little impact on the market in short time, and the price is stable temporarily. Some electrode manufacturers also reflect that they are not in a hurry to ship at present, and the mentality of graphite electrode manufacturers is relatively stable.

ICC China Graphite Electrode Price Index (June 9)

Raw materials aspect: This week the raw material market price remained stable for the time being, the market transaction situation was general. The international crude oil price fluctuated at a high level, and domestic slurry supply was tight, which provided strong support for the slurry price. The slurry price continued to rise, and the cost pressure of oil-based needle coke enterprises continued to increase.

As of the end of this week, Shandong leading manufacturers’ oil-based needle coke quotation remained at 13800-15500 yuan/ton, Fushun Petrochemical 1#A petroleum coke quoted 9000 yuan/ton, Jinxi Petrochemical 1#B petroleum coke quoted 6900-7000 yuan/ton, low sulfur calcined coke was basically stable, and Northeast China calcined petroleum coke price was 9500-11500 yuan/ton.

Downstream aspect: Due to the comprehensive influence of high temperature, rainfall, epidemic, college entrance examination and other factors, the construction steel market was generally traded this week, scrap rebound strength is slightly greater than steel, the EAF plants’ losses range was expanded, and the EAF capacity utilization rate dropped to about 50%.  

Future forecast: In the short term, domestic steel market is still difficult to get rid of  weak supply and demand situation, and raw material price will continue to run at a high level. It is expected that the overall graphite electrode market will maintain slight fluctuations. Reading more graphite electrode market news, please contact us.