Strong market wait-and-see sentiment, weak graphite electrode price adjustment

This week the graphite electrode market price was lowered. Recently, the production reduction of steel plants is still increasing, and the inventory of some EAF steel plants is not easy to be consumed. Steel plants overall production remains low. The overall negative impact on the graphite electrode market demand side is still obvious, which affects the market confidence. In addition, the steel plants reduce costs and increase efficiency, and the purchase price is mostly depressed. Graphite electrode market transaction price continues to decline.

This week graphite electrode market supply side remained weak. With the increase of steel plant production reduction and the fluctuation of graphite electrode raw material price, graphite electrode enterprises mostly maintain production reduction under the wait-and-see mood. Some graphite electrode enterprises have closed the forming and other processes, and the production mainly consumes semi-finished products.

This week, the weakness of graphite electrode market continued and the graphite electrode terminal steel market has slightly warmed up, the steel price has increased, which is positive for the graphite electrode market. However, on the one hand, scrap supply is tight, the impact of the current high temperature on production is still there, the terminal steel demand is less than expected. On the other hand, the inventory of some electric furnace steel plants is high. Therefore, it is not easy to achieve significant improvement in the short-term startup of the steel plants. Most of them are still reducing production, and the short-term graphite electrode market trading is mainly based on demand.

This week, the graphite electrode cost fluctuated at a high level. Graphite electrode market upstream raw material high-end low sulfur petroleum coke price was lowered twice, with a cumulative reduction of 600 yuan/ton. Moreover, some needle coke manufacturers indicated that the price might weaken. In general, graphite electrode market cost support was weakened, and the wait-and-see mood increased. However, the anode material market production is stable, the prices of low sulfur petroleum coke and needle coke are still supported. The relief of graphite electrode market cost pressure is expected to be limited.

Recently, steel plants' profits have improved, with a positive impact on graphite electrode market. However, on the one hand, the terminal steel demand has not improved significantly, some EAF steel plants inventory is high, which makes it difficult for the steel plant to achieve significant improvement in the short term. On the other hand, the recent reduction of graphite electrode raw material prices increased the market wait-and-see sentiment. Therefore, in the short term, graphite electrode market price will maintain the current weak adjustment state. Reading more graphite electrode trading news, feel free to contact us.