【Graphite electrode】market runs smoothly, the cost pressure still exists

This week, China's ultra high power graphite electrode prices were in a weak trend, with a decrease of 200 yuan/ton week-on-week, the φ 450 quotation was 20800-21300 yuan/ton, the φ600 quotation was 24800-25300 yuan/ton, and the market trading atmosphere is general. 

In terms of downstream, the l87 independent electric arc furnace steel plants average operating rate nationwide was 74.84%, with a month-on-month increase of 5.95% and a year-on-year increase of 3.52%, of which, Northeast and Central China increased significantly, while East China and Southwest China increased slightly. The 247 steel plants blast furnace operating rate was 82.00%, with a week-on-week increase of 0.93% and a year-on-year increase of 11.15%; The blast furnace ironmaking capacity utilization rate was 88.03%, with a month-on-month increase of 0.89% and a year-on-year increase of 8.26%. In February, China domestic economic activities fully recovered, and the demand for steel increased steadily. However, from the current recovery rate of the steel market, it was significantly lower than expected. With the impact of major domestic conferences, the productivity utilization rate of blast furnace and electric furnace was low. Market demand is weak, which is obviously not enough to support prices. 

In terms of raw materials, Jinxi raw petroleum coke price was stable, Daqing raw petroleum coke price was reduced by 400 yuan/ton, needle coke market was stable, while the raw material prices fluctuated, which brought instability on the cost of graphite electrode. Due to the relatively long production cycle of graphite electrode, the market demand influence plays a major role currently. With the end of the major meeting, the downstream recovery rate is expected to increase to a certain extent, steel demand is likely to increase significantly, and the raw materials demand will also improve. The ultra-high power graphite electrode price is expected to remain stable in the short term. Feel free to contact us to learn more related reports of GRAPHITE MARKET.