【Graphite Electrodes】Stable Prices with Anticipated Increase

Price Situation

Currently, the market price for graphite electrodes (450mm; high power) in China is stable, with tax-included cash quotations ranging from 15,600 to 17,100 yuan/ton, and an average price of 16,350 yuan/ton, unchanged from yesterday. The market price for graphite electrodes (450mm; ultra-high power) in China is also stable, ranging from 16,100 to 16,900 yuan/ton, with an average price of 16,500 yuan/ton, showing no change from yesterday. 

Comprehensive Analysis

According to research, the domestic graphite electrode market prices remain stable without fluctuations. With the downstream market inventory gradually becoming sufficient, the actions for graphite electrode bidding have slowed down. Moreover, with steel mills tightening profits, the purchase of graphite electrodes has become more cautious, leading to poor market demand for graphite electrodes. Some graphite electrode enterprises are eager to ship at lower prices, resulting in a slight increase in lower-priced resources in the market, making it difficult for mainstream enterprises to push for price increases.

Raw Material Market

On the upstream side, the overall trading atmosphere in the domestic needle coke market is average. In terms of supply and demand, most needle coke enterprises are shut down with no intention to resume operations, and petroleum-based enterprises are still operating at low loads. The operation of graphite electrode market endpoints is also somewhat average, with demand for the needle coke market not reaching levels of previous years.

Downstream Market

There are sporadic stockpiling bids in the downstream market, but orders are few, and graphite electrode enterprises are bidding cautiously, mostly adopting a wait-and-see attitude. Transactions within the graphite electrode market are slow. Most graphite electrode enterprises are eager to raise prices, and with some raw material prices increasing, the cost pressure on graphite electrode enterprises is growing, leading to losses in the graphite electrode industry.

Market Forecast

In the short term, the graphite electrode market is expected to see an upward trend. The overall trading atmosphere in the domestic needle coke market is average, and the price situation for scrap steel in steel mills nationwide shows mixed trends of increases and decreases. It is expected that as the operating rates of electric furnaces continue to improve, the trading atmosphere in the graphite electrode market is likely to improve, and graphite electrode prices may have upward potential. Follow us to learn more about the graphite electrode market.