Under weak and stable market demand, most graphite electrode enterprises reduce production and stabilize prices

Industry trends

The market price of graphite electrode is weak and stable. The terminal steel market continues to be weak, and the steel plants' profits are insufficient. In order to reduce costs, steel plants have lowered graphite electrodes' purchase price, and some graphite electrode enterprises lack confidence, part of the their orders shipped at a low price. The market price of graphite electrode runs disorderly, and transaction prices have certain differences. 

The supply of graphite electrode market continues to decrease. Affected by the weak demand of steel plants, most graphite electrode enterprises are willing to reduce production. It is understood that some graphite electrode enterprises are expected to reduce production capacity of more than half. Considering the weak inventory sales of steel plants and the steel market at the end of the off-season, parts of graphite electrode enterprises are expected to reduce production from July to August.

The market demand of graphite electrode is weak. For steel, the inventory of steel plants is not easy to consume. In the state of loss, more steel plants stop or reduce production, and the demand for graphite electrodes is limited. Large steel plants purchase on demand. For non-steel, metallic silicon and yellow phosphorus market is in wet season, and the demand for graphite electrodes remains stable.

The cost of graphite electrode is still high. Supported by anode materials market demand, the upstream raw materials low sulfur petroleum coke and needle coke prices are stable at a high level. In terms of low sulfur petroleum coke, the maintenance of Daqing Refinery and the low market inventory simultaneously benefit low sulfur petroleum coke price and needle coke market demand. Therefore, in the short term, graphite electrode cost pressure is not easy to ease.

Graphite electrode market overall profit is limited. The terminal steel market is weak, some graphite electrode enterprises lack confidence and low-cost orders are placed in the market, in the short term, graphite electrode market raw materials price is stable at high level, the process processing resources are still tight, supporting process processing cost is not easy to fluctuate. Comprehensive review of graphite electrode market cost and price, according to the current cost of graphite electrode market, some graphite electrode enterprises have started losses.

Graphite electrode market has little inventory pressure. Some small and medium-sized graphite electrode enterprises said that in order to reduce inventory risk, enterprises only guarantee orders from regular customers. With many graphite electrode enterprises reducing production, the inventory accumulation of the graphite electrode market is limited.

In the off-season of the terminal steel market, steel plants inventory is not easy to consume, and the producing operation of steel plants is difficult to improve in the short term, which has a lasting impact on the graphite electrode market. However, the supply of graphite electrode enterprises is adjusted downward, and the inventory pressure is not large, which has a certain stabilizing effect on the market. In the short term, graphite electrode market cost remains high and tends to be stable, and graphite electrode market price is expected to be weak and stable. For more analysis of the graphite electrode market, please contact us.