Weekly review: Small fluctuations in graphite electrode prices, market wait-and-see mood increase (6.17-6.24)

This week, China's graphite electrode market fluctuates slightly. Due to weak market demand, the quotation of small and medium-sized graphite electrode begins to loosen up, and manufacturers' shipping mentality is more entangled.

By the end of this week, the market mainstream price of UHP450mm specifications with 30% needle coke content is 25,500-26,000 yuan/ton, the market mainstream price of UHP600mm specifications is 28,500-30,000 yuan/ton, and UHP700mm price is 32,500-33500 yuan/ton.

According to the understanding, some small and medium-sized graphite electrode enterprises are less willing to ship at low prices, and are basically implementing early orders.They mentioned that under the current cost pressure, as the downstream steel plants are not active in negotiating the price of graphite electrode, even if enterprise reduce price, it is difficult to stimulate the downstream to pick up the goods. Therefore, it is best to delay the delivery and wait and see. Other graphite electrode enterprises also plan to reduce production or change production to reduce the risk of inventory accumulation. Currently, they mainly focus on the inventory circulation of semi-finished graphite electrodes, gradually increase the proportion of large-size graphite electrodes and reduce the proportion of small and medium-sized graphite electrodes.

ICC China graphite electrode price index (June 24)

Recently, the international oil price has fluctuated greatly and has been weakening for several days. However, the current supply is tight, which still strongly supports the price of oil-based needle coke. It is expected that the prices of petroleum coke, needle coke and other raw materials will not fluctuate much in the later period.

By the end of this week, Shandong leading manufacturers' oil-based needle coke quotation has remained at 14,600-17,500 yuan/ton, Fushun Petrochemical 1#A petroleum coke has quoted at 9000 yuan/ton, Jinxi Petrochemical 1#B petroleum coke has quoted at 6900-7000 yuan/ton, Huizhou petrochemical 1#B has raised 150 yuan/ton this week, offering 6900 yuan/ton, low sulfur calcined coke is basically stable, Northeast China calcined petroleum coke price is 9,500-12,000 yuan/ton, and the cost support of graphite electrode price is still obvious.  

This week, China's steel price fell sharply by more than 300 yuan/ton, and the market pessimism spread further. Although the scrap price fell more, and the surface profit of EAF (electric arc furnace )steel plants rebounded slightly, in fact, it was difficult to purchase low-cost scrap resources. In addition, the market's expectations for steel demand were weak, which led to many independent EAF steel plants in South China to stop production for maintenance, mainly in Jiangsu, Zhejiang and Fujian, while the production of long-process steel plants was relatively stable.  

Overall, China's steel industry is currently suffering from losses, and the price of raw materials is expected to fall. However, needle coke, petroleum coke and other raw materials are generally operating at a high level, which still strongly supports the price of graphite electrode. Market prices are expected to continue to fluctuate slightly in the short term. For the latest report on graphite electrode market forecast, please feel free to contact us.