【UHP Graphite Electrodes】Local Market Prices Weak and Stable

This week, the price of ultra-high power graphite electrodes in China has been running weakly and steadily. The price for φ450 ultra-high power graphite electrodes is in the range of 18300-18800 yuan/ton, while the price for φ600 is in the range of 21800-22300 yuan/ton. Some transactions have been made at lower prices, with a price difference of over 2000 yuan/ton. 

In terms of downstream demand, the average operating rate of 87 independent electric arc furnace steel mills in China is 68.43%, a decrease of 6.1 percentage points compared to the previous week, and a decrease of 4.11 percentage points year-on-year. The operating rates in North China, South China, and Central China have decreased significantly, while the operating rate in East China has decreased slightly. According to research on 247 blast furnaces, the operating rate is 81.69%, a decrease of 0.87% compared to the previous week, and a decrease of 0.22% year-on-year. The iron-making capacity utilization rate of blast furnaces is 89.49%, a decrease of 1.14% compared to the previous week, and an increase of 1.74% year-on-year. The loss per ton of electric furnace is 222.12 yuan, while the loss per ton of blast furnace is 57.45 yuan. The losses for electric furnaces have increased compared to last week, while the losses for blast furnaces have slightly eased. With the pressure on upstream raw materials, the demand for ultra-high power graphite electrodes in downstream industries has weakened, and steel mills have significantly reduced their procurement volumes. This has resulted in significant price differences in the purchasing prices of ultra-high power graphite electrodes, with significantly lower prices for steel mills that offer prepayments and have shorter repayment periods.

In terms of raw materials, this week saw stable prices for Jinxi coking coal, while Daqing coking coal increased by 200 yuan/ton, and needle coke maintained a stable operation. With the increase in raw material costs, the operation of ultra-high power graphite electrodes has become more difficult. It is expected that the price of ultra-high power graphite electrodes in China will remain weak and stable in the short term. Contact us for more reports on GE market.