【Graphite Electrodes】Price Increase of 200 RMB/Ton

Last week, Chinese domestic ultra-high-power graphite electrode prices showed a weak trend, with small and medium sizes rising by 200 RMB/ton. The quotation for ultra-high-power graphite electrodes with a diameter of φ450 is 15,000 RMB/ton, and φ600 is quoted at 17,500 RMB/ton. Market transactions were moderate, and bidding activities for the upcoming Chinese New Year are nearing completion. 

On the downstream side, the average operating rate of 87 independent arc furnace steel mills in China was 68.04%, a decrease of 2.12 percentage points compared to the previous period and an increase of 61.00 percentage points year-on-year. The Northwest region showed a significant decline, while the South, East, and Southwest regions saw a slight decrease, and the Central region saw a slight increase. The operating rate of 247 blast furnaces in steel mills was 76.23%, up 0.15% from the previous week and 0.26% higher year-on-year. The iron smelting capacity utilization rate of blast furnaces was 82.98%, up 0.42% from the previous week and down 0.12% year-on-year. The profit margin of steel mills was 26.41%, down 0.43% from the previous period and 0.86% year-on-year. Electric furnace profits were a loss of 195.80 RMB/ton, blast furnace profits were a loss of 353.50 RMB/ton, and the losses for steel mills intensified. Graphite electrode bidding prices mostly trended lower due to the increased losses. As the supply of ultra-high-power graphite electrodes remains low, leading to tight supply for some popular specifications, prices are showing an upward trend.

On the raw material side, Daqing's blast furnace coke has risen by 280 RMB/ton in the past two weeks, while the price of Shandong Yida needle coke has dropped by 300 RMB/ton in the past two weeks. With recent fluctuations in raw material prices, the cost of ultra-high-power graphite electrodes is uncertain. However, as bidding activities approach completion, it is expected that the domestic prices for ultra-high-power graphite electrodes will remain stable in the short term. For more information on the graphite electrode market, feel free to communicate with us.