Demand side support is insufficient, needle coke market operating rate drops 

Needle coke market current situation analysis

Since August, needle coke market has weakened and the price has dropped by 500 yuan. The main negative factors are the demand side. The downstream graphite electrode terminal steel plant producing operation has declined, and the demand for needle coke is dominated. The supply and demand of calcined petroleum coke market are weak. Purchasing demand for anode materials slowed down and based on demand. In addtion, the related product petroleum coke price continues to decline, wait-and-see mentality increases. In terms of cost, the high-level operation of raw coal tar pitch and oil slurry has a certain positive support for needle coke, limited space for price downward exploration. 

Price range: Calcined petroleum coke is 10500-15000 yuan/ton; Raw petroleum coke is 8500-10500 yuan/ton; Imported oil-based needle coke mainstream transaction price: Raw petroleum coke is $1300-1600/ton; Calcined petroleum coke is $2300-2500/ton; Imported coal-based needle coke mainstream transaction price is $1700-2000/ton.

Affected by negative market factors, the operation of coal-based needle coke declined

The operation of oil-based needle coke mainstream manufacturers is at a normal level. As the raw material coal tar pitch price has been increasing, the coal-based needle coke price continues to rise, the cost is high, the downstream demand is general, and anode material price is obviously depressed. Meanwhile, low sulfur petroleum coke price has been reduced by 1300-1400 yuan since the beginning of August. The price advantage of coal-based needle coke is weakened. Under the mentality of buying up rather than buying down in the market, downstream manufacturers are cautious about needle coke procurement.

Needle coke total capacity is 2.72 million tons, including 1.52 million tons of oil-based needle coke and 1.2 million tons of coal-based needle coke. The oil-based needle coke operating rate is about 60%, and the coal-based needle coke operating capacity is only 490，000 tons, with an operating rate of about 32%. Needle coke market price forecast, please refer to us for details.