【Needle Coke】How was the market trend in early August?

Market Overview

The supply and demand balance for needle coke remains stable. Downstream industries have not engaged in significant stockpiling, and the demand for raw materials is primarily driven by small-scale essential needs. The UHP graphite electrodes made from needle coke are used in electric arc furnace smelting. The mainstream price for raw green needle coke ranges from 5000 to 5500 RMB/ton, while the mainstream price for calcined needle coke ranges from 8000 to 9500 RMB/ton. 

1) The mainstream price for modified coal tar pitch has been adjusted to 5300-5600 RMB/ton, and the mainstream price for medium-temperature coal tar pitch has been adjusted to around 5400 RMB/ton.

2) The average operating rate of electric arc furnace steel plants is 72.26%, which is stable compared to the previous period, with a year-on-year increase of 15.92 percentage points.

3) The mainstream price in the medium- to low-sulfur coal tar pitch market is 4000-4500 RMB/ton.        

01. Demand

Demand from negative electrode enterprises shows a slight upward trend. The nationwide independent electric arc furnace operation rate remains stable compared to the previous period, with a marginal increase in capacity utilization. However, the demand for needle coke from graphite electrodes is not favorable. The mainstream price for mid-range artificial graphite is 34000 RMB/ton, and the market price for ultra-high power 700mm graphite electrodes is 23000 RMB/ton.

02. Supply

Many enterprises in the coal-based needle coke sector have either halted production or shifted to producing pitch coke, with reopening schedules uncertain. Petroleum-based enterprises are maintaining operations at a low capacity. In the medium- to low-sulfur coal tar pitch market, the mainstream price is 4000-4500 RMB/ton. The mainstream price for modified coal tar pitch has been adjusted to 5300-5600 RMB/ton, and the mainstream price for medium-temperature coal tar pitch is 5400 RMB/ton.

03. Future Forecast

It's crucial to closely monitor market dynamics and changes in downstream demand to adjust production and sales strategies in a timely manner. For enterprises with demand, appropriate procurement and stocking can be carried out based on market conditions to ensure smooth production. In summary, the current needle coke market is relatively stable with balanced supply and demand. There are no significant positive signs in downstream demand, and it is expected that needle coke prices will remain stable in the short term with a cautious wait-and-see approach. For more news about the needle coke industry, feel free to contact us.