Weekly review: downstream demand is improved, and electrode manufacturer increases the quotation

The declining graphite electrode market experienced a tentative small rise this week, up about 1,000 yuan/ton. As of this Friday, the UHP 450mm graphite electrode with 30% needle coke content mainstream market price was 20000-21000 yuan/ton, UHP 600mm mainstream market price was 24000-25000 yuan/ton; UHP 700mm mainstream market price was 27500-28500 yuan/ton. 

There are several reasons for this price increase:

First of all, since the second quarter, the graphite electrode market has been weak, and electrode enterprises have suffered serious losses. In order to ensure the balance between supply and demand, many graphite electrode manufacturers in the industry choose to reduce production and transform part of the process capacity (calcination, graphitization, forming) into anode material plants to provide some processing services. A few months later, the electrode market inventory was gradually digested, and the supply and demand side has improved.

Secondly, after a brief adjustment, the price of low sulfur petroleum coke has risen again recently (such as Daqing), and the electrode cost support is still strong.

Demand aspect:

Recently, the price of steel has rebounded, the operating rate of electric furnace has significantly improved, and the overall output of steel has increased. Some early wait-and-see steel plants have increased the strength of electrode replenishment, and the market demand has improved, especially the small electrodes used in refining furnaces are in short supply.

ICC China Graphite Electrode Price Index (September 16)

Raw materials aspect:

This week, the needle coke market in a weak and stable operation state. Some enterprises have entered a period of maintenance. The enterprises mainly sold inventory. The ex-factory prices of most enterprises' products remain stable, and some enterprises offer slightly preferential prices. Driven by the anode market, the petroleum coke market price continues to rise.

Specifically, coal-based needle coke is 11000-12500 yuan/ton, oil-based needle coke is 12000-14000 yuan/ton, and Daqing Petrochemical 1#A increased the price by 400 yuan to 7600 yuan/ton; Fushun Petrochemical 1# increased the price by 200 yuan to 7400 yuan/ton; Dagang Petrochemical 1#A increased the price by 140 yuan to 7370 yuan/ton; Jinxi Petrochemical 1#B increased by 250 yuan to 7350-7450 yuan/ton; The price of Jinzhou Petrochemical 1#B increased the price by 350 yuan to 7250 yuan/ton; Huizhou Petrochemical 1#B price remained stable at 6610 yuan/ton.

In addition, industry insiders said, affected by the "double carbon" policy, each refinery will have a production reduction plan, low sulfur coke resource supply will be more tight, and graphite electrode comprehensive production cost will still be high.

Steel plant aspect:

This week, the steel market continued to operate in shock, and the downstream transaction was slightly improved, but the merchants' mentality was still in repair, and their enthusiasm for stocking goods is not high. Meanwhile, electric furnace steel plants are still generally in a loss state, and continue to focus on off-peak production. The recovery of electric furnace steel production has weakened.

Market forecast:

Although the current trading center of graphite electrode has moved up, but because of the long-term decline, the electrode price increases may face greater pressure, and in a short time, the possibility of graphite electrode rapid recovery is also very low. In the short term, the graphite electrode price is expected to rebound slightly. Graphite electrode market more forecast, welcome to contact us.