Graphite Electrode Market Runs Weakly with Light Trading

During the May Day holiday, the on-site trading was slow and some graphite electrode enterprises reported no new orders and almost no transactions. Although the price of low-sulfur petroleum coke, an upstream raw material, has risen, it still provides relatively weak support to the graphite electrode market, which is currently running steadily while waiting and watching. 

The production enthusiasm of graphite electrode enterprises was relatively low this week, and it was reported that there was no significant improvement in the May orders. The overall market sentiment was cautious, and since it was during the May Day holiday, some graphite electrode enterprises were selling based on orders to prevent inventory accumulation.

The demand for graphite electrodes in the market is weak. In the non-steel sector, the performance of silicon factories in terms of starting production is not ideal, with many factories undergoing maintenance, leading to a decrease in demand for regular power graphite electrodes. In the steel sector, due to factors such as insufficient profits, some electric furnace steel plants have limited production, and some have not yet started production, resulting in general shipments of ultra-high-power large-scale graphite electrodes.

The cost of graphite electrodes in the market is decreasing. This week, the price of low-sulfur petroleum coke in Northeast China was raised by RMB 200/ton, while the price of needle coke continued to decline and the price of coal tar pitch was lowered. However, the transaction price of graphite electrodes has fallen below the cost, and overall, the cost support for graphite electrodes is still insufficient to support their prices.

The inventory of graphite electrodes is at a moderate level. Due to the long production cycle of graphite electrodes, the overall inventory of graphite electrode enterprises remained at a low level in the short term, and their output has decreased compared to previous periods.

Although the price of low-sulfur petroleum coke has an upward trend, the prices of needle coke and coal tar pitch are still bearish, and the cost support is relatively weak. Under the circumstances of insufficient cost support and no significant improvement in downstream demand, the market sentiment for graphite electrodes is relatively cautious.

In summary, bearish factors dominate, and the graphite electrode market is expected to remain steady and cautious next week. Follow us on the dynamics of the electrode market.