Recovery of graphite electrode demand is just around the corner

The steel market was closed around the Spring Festival, and the downstream market stopped production during holiday, the overall demand for finished products was significantly reduced, and scrap steel resources were in short supply. Independent furnace plant basically shut down as planned for maintenance. Electric arc furnace steelmaking operation rate has fallen into the single digits of 5.6% to 7.8%, and graphite electrode demand was weak. 

As of the week of February 10, the electric arc furnace steelmakers have successively resumed operation or unsaturated production, and the operating rate of the electric arc furnace has risen to 31.31%, However, the current terminal operating level is still below the average, which cannot promote demand recovery.

In 2023, under the background of "double carbon" goal, the proportion of electric furnace short-process steelmaking still has room to rise. Domestic and international macroeconomic environment will be improved. Iron and steel is an important basic industry of the national economy. China has a clear positioning of the role of infrastructure construction in driving and supporting the economy. The relevant meeting pointed out "accelerating the implementation of the "14th Five-Year Plan " major projects and strengthening the connectivity of infrastructure between regions". Although it is difficult for real estate growth to return to the era of rapid growth in the past, the "bottom" of real estate in 2023 may be foreseeable. In the first quarter, the graphite electrode market was in light operation. In the second and third quarters, the overall market will focus on the downstream steel industry recovery. Hope with the policy adjustment and epidemic ended, it will bring new vitality to the economy and promote new development of graphite electrode market. Contact us for further information about future demand of graphite electrode market.