【Graphite Electrode】Market Faces Weakness with Sluggish Trading

The graphite electrode market is experiencing a weak downward trend. Trading activities in the market are sluggish, and some graphite electrode enterprises report no new orders and almost no transactions. Although the prices of low-sulfur petroleum coke, an upstream raw material, have increased, it is still insufficient to support the graphite electrode market, which is maintaining a stable and cautious stance.

The production enthusiasm of graphite electrode enterprises is low this week, with no significant improvement in May's order volume. The overall market sentiment is dominated by a wait-and-see attitude, and it is also the May Day holiday during the week, leading some graphite electrode enterprises to produce based on sales to prevent inventory accumulation. 

The demand for graphite electrodes in the market is weak. In the non-steel sector, silicon plants have shown poor operating performance with many shutdowns for maintenance, resulting in reduced demand for regular power graphite electrodes. In the steel sector, electric arc furnace (EAF) steel mills are limited by insufficient profitability, leading to restricted production. Some EAF steel mills have not yet resumed production, resulting in average shipments of ultra-high power large-sized graphite electrodes.

The cost of graphite electrodes has weakened. This week, the price of low-sulfur petroleum coke in the Northeast region has increased by 200 yuan/ton, while needle coke prices continue to decline, and coal tar pitch prices have decreased. However, the transaction prices of graphite electrodes have fallen below the cost side. Overall, the cost of graphite electrodes is still insufficient to support their prices.

Graphite electrode inventories are at a moderate level. Due to the long production cycle of graphite electrodes, the overall inventory level of enterprises remains relatively low in the short term, with reduced output compared to the previous period.

Although there is an upward trend in the price of low-sulfur petroleum coke, the prices of needle coke and coal tar pitch are still bearish. With insufficient cost support and no significant improvement in downstream demand, the graphite electrode market is characterized by a strong wait-and-see sentiment.

Overall, the market is dominated by bearish factors, and it is expected that the graphite electrode market will remain stable and cautious next week. Explore the Latest Graphite Market Prices, Contact Us for More Information!