CHINA GRAPHITE ELECTRODE MARKET ANALYSIS AND FORECAST Ⅰ

1. Graphite Electrode Market Analysis

From price aspect: in late July 2021, the graphite electrode market trend is downward, and the graphite electrode price gradually decreased, with a total reduction of about 8.97%. Mainly due to the overall increase in the supply of graphite electrode market, the introduction of crude steel production reduction policy and high temperature power limiting measures, the overall commencement of graphite electrode downstream steel factories is flat, and the initiative to purchase graphite electrode weakened. In addition, some small and medium-sized graphite electrode enterprises and some enterprises active in the early production with adequate graphite electrode in stock have reduced prices to increase shipments, resulting in a decline of the overall price in graphite electrode market. As of August 23, 2021, the price of UHP 300-700mm graphite electrode in China is 17500-30000 yuan / ton, and some orders price is lower than the market price yet.

From cost & profit aspect: In terms of cost, for the raw material of graphite electrode upstream, the price of low sulfur petroleum coke maintained an upward trend. Compared with the low price in the first half of the year, the price increased by 850-1200 yuan / ton, an increase of about 37%, and an increase of about 29% compared to the beginning of 2021; The price of needle coke is stable at a high level, up about 54% compared to the beginning of the year; The price of coal tar pitch fluctuated slightly at a high level. The price increased by about 55% compared to the beginning of 2021. The price of raw materials upstream of graphite electrode is at a high level.

In addition, the processing costs of graphite electrode baking, graphitization and other processes have also increased recently. It is understood that the power restriction in Inner Mongolia has been strengthened again recently. Due to power restriction policy and the graphitization price of anode materials have been driven upward, the graphitization price of graphite electrode may continue to rise. So it can be seen that the cost of graphite electrode is under great pressure.

In terms of profit, graphite electrode prices have increased by about 31% compared to the beginning of 2021, much less than the increase in raw material prices. As graphite electrode production cost pressure, coupled with the graphite electrode price downward, the overall profit surface of the graphite electrode market is squeezed. It is understood that in order to ensure shipment some small and medium-sized graphite electrode enterprises or some enterprises have adequate graphite electrode in stock, part of their order transaction price has been near the cost line, the overall profit of the graphite electrode market is insufficient.

From production aspect: Recently, mainstream graphite electrode enterprises have basically maintained normal production. Some graphite electrode enterprises have reduced their production enthusiasm because of the general terminal demand and the increase of cost, and some enterprises set their production according to sales. It is reported that some graphite electrode enterprises have plans to reduce production in the second half of the year, and it is expected that there will be reduction at the graphite electrode market supply end, get more related information contact us.