【Weekly Report】Analysis of Needle Coke and Graphite Electrode Markets

1. Needle Coke Market Analysis

Data Source: Oilchem

Needle Coke: This week, although there has been some recovery in downstream demand for negative electrodes, the enthusiasm for external procurement of raw materials remains low, resulting in significant pressure on needle coke shipments. The mainstream price for calcined needle coke is in the range of 7,500 to 9,300 yuan/ton, while green coke is priced at 4,500 to 5,300 yuan/ton. As for raw material costs, this week, the market price for modified coal tar pitch decreased by 90 yuan/ton, with the mainstream price ranging from 4,550 to 4,800 yuan/ton, while the low-sulfur oil slurry market price increased by 206 yuan/ton, with the mainstream price ranging from 4,133 to 4,370 yuan/ton. Raw material prices showed mixed trends. On the supply side, the production output of enterprises remained stable this week with no change from the previous week. On the demand side, the capacity for negative electrode materials continues to grow, and downstream demand is steadily recovering. Although the production scheduling for negative electrode materials has slightly increased, the increase in needle coke usage under cost reduction is not significant. As the graphite electrode prices face downward pressure and production enthusiasm remains low, the purchase of needle coke has decreased. It is expected that next week, the market will be mainly driven by rigid demand, with a lack of overall positive factors, leading to a weak and stable wait-and-see situation for needle coke prices.

2. Graphite Electrode Market Analysis

China Domestic Graphite Electrode Market Transaction Prices

Data Source: Oilchem

Electrode Market: This week, the domestic graphite electrode prices remained stable, with the price for ultra-high power graphite electrodes (450mm) quoted at 17,000 yuan/ton and (600mm) quoted at 20,500 yuan/ton, with average transactions. As for raw materials, the price of low-sulfur petroleum coke increased, while the price for calcined coke remained stable, resulting in mixed trends for raw materials. In the downstream steel market, the average capacity utilization rate of 87 independent electric arc furnace steel plants nationwide was 68.63%, increasing by 1.34 percentage points compared to the previous period and by 26.08 percentage points year-on-year. The average capacity utilization rate of independent electric arc furnace steel plants was 50.10%, decreasing by 0.94 percentage points compared to the previous period but increasing by 18.21 percentage points year-on-year. Currently, there are still difficulties in scrap steel collection, and some steel plants with plans for resumption have postponed their resumption schedule. Looking ahead to next week, only one steel plant in the East China region plans to resume production on the 16th, while electricity consumption remains an important factor. Overall, it is expected that the opening rate and capacity utilization rate of independent electric arc furnace plants may continue to decline slightly next week. Market reports on electrodes and needle coke, contact us for more detailed information.