【Graphite Electrode】Price Rise Expected

In recent times, due to the increase in raw material prices, graphite electrode manufacturers are considering cost and profit factors. Especially since the overall profitability of the graphite electrode industry is still in a deficit, manufacturers are collectively adopting a stance to raise prices.

As of August 17th, the mainstream quotation for UHP450mm specification in the market stands at 16,500 yuan/ton, UHP600mm specification at 19,500 yuan/ton, and UHP700mm at 23,500 yuan/ton.

From the supply perspective：

Starting from May, graphite electrode enterprises, unable to withstand the pressure of losses, were forced to limit production. The production output of graphite electrode enterprises has continuously contracted, and the current industry's capacity utilization rate is around 50%.

From the demand perspective:

Although the graphite electrode industry is still in the traditional off-peak demand season, with the arrival of the strong demand season in September and October ("Golden September, Silver October"), coupled with the successive implementation of policies stimulating domestic demand and controlling production levels, it is expected that downstream demand will experience a phase of strong replenishment under the influence of rising prices.

Entering the fourth quarter, against the backdrop of macroeconomic recovery and intensified policy support, market expectations for steel demand have improved. In the recent period, electric arc furnace steel plants' demand remains somewhat weak due to seasonal high temperatures and rainfall constraints. It is anticipated that starting from September, the impact of seasonal high temperatures and rainfall will gradually weaken, and electric arc furnace operating rates are expected to recover gradually. This could lead to an improved trading atmosphere in the graphite electrode market and an expectation of price increases.  Feel free to discuss the supply and demand of the graphite electrode market with us.