【Graphite Electrodes】Analysis of Current Market Influencing Factors

Data source: Oilchem

The overall trend of Chinese graphite electrode market in October was stable and slightly upward. Due to the pressure of production and operating costs, some graphite electrode manufacturers have slightly increased their market quotations. As of October 27th, the monthly average price of UHP 600mm is 21500 yuan/ton, the monthly average price of HP 500mm is 16500 yuan/ton, and the monthly average price of RP 500mm is 15500 yuan/ton. Due to the low or even no profit margin in the production of graphite electrodes, there are few enterprises that produce normally, and only a few mainstream enterprises produce at low loads to maintain downstream customer demand. According to research, most enterprises indicate that there will be no significant fluctuations in the current supply and demand situation, and it will still take time for market conditions to recover.

Data source: Oilchem

This week, the average operating rate of independent eaf steel plants was 71.53%, an increase of 0.93 percentage points month on month and 11.07 percentage points year-on-year. The reason is that recently, under the stimulation of macro news, the prices of finished products have significantly increased month on month, and the profitability of steel mills has improved to a certain extent. Therefore, some steel mills have chosen to increase their operating time and improve production efficiency, which has a certain boosting effect on the graphite electrode market. However, currently, steel mills are only partially increasing production and have a temporary nature. In the later recovery, attention should still be paid to the demand situation of steel mills.

Data source: Oilchem

In September 2023, the national graphite export volume was 24800 tons, a slight increase compared to the previous cycle. It is expected that the graphite electrode export volume will be at a stable upward level in October, but there will be no significant increase overall. Recently, after the cancellation of export controls on graphite electrodes, there has been a positive impact on the export of graphite electrodes. It is expected that more enterprises will join the export industry in the future. On the other hand, competition in the graphite electrode market will also become increasingly fierce in the future. In the long run, with the continuous improvement of China's graphite electrode technology and product quality, the export volume of graphite electrodes will further increase.

Overall, the graphite electrode market will still face poor production profits and low operating costs in the short term. In the long run, the macro news is positive for the steel market, and electric furnace steelmaking will become an important trend in the future. As a necessary consumable for the production of electric furnace steel, the demand for graphite electrodes may continue to grow in the future. Feel free to contact us for market policy and market analysis of graphite electrodes!