Latest Graphite Electrode Market: Graphite Electrode Prices Continue To Rise

      The graphite electrode price is still mainly affected by the rising price of raw materials. Graphite electrode cost surface continues to be high pressurized state, graphite electrode enterprises profit is limited, the enterprise production is cautious, some small and medium-sized graphite electrode enterprises independent control production, graphite electrode market as a whole is not enough, the enterprise quotation is relatively firm. Under the pressure of cost, the price of graphite electrode continues to rise with the price of raw materials. Specific analysis is as follows:

First, the cost side continues to boost the price of graphite electrode

      Supported by the anode material market demand, graphite electrode upstream raw materials such as low sulfur petroleum coke prices continue to rise, the increase is far more than the graphite electrode market price rise. Based on the current graphite electrode market upstream raw materials low sulfur petroleum coke, needle coke, coal asphalt price calculation, theoretically, the current graphite electrode market comprehensive cost is about 23,000 yuan/ton, the overall profit space of the graphite electrode market is insufficient, graphite electrode price has a space to push up.

      Other than the complete process of graphite electrode enterprise cost pressure is more obvious, affected by negative market, and the processing part of the graphite electrode under the influence of corporate profits turn negative graphitization and negative crucible, lead to generation of graphite electrode graphitization and roasting process processing resources nervous, the price of graphite electrode graphitization in 5000-5300 yuan/ton, Individual high price 5600 yuan/ton.

Two, graphite electrode market starts insufficient, enterprise quotation is firm

      It is understood that the graphite electrode market as a whole is still insufficient. On the one hand, the epidemic control in some areas is still relatively strict, and the transportation of raw materials is difficult, so enterprises consume raw materials in stock for production. Some regions are controlled by region, and the production of enterprises is also limited; On the other hand, the current graphite electrode upstream raw material price is high, the superimposed graphite electrode production cycle is long, capacity release lag characteristics, some graphite electrode enterprises have a certain concern, enterprises control production to reduce risks.

      By the end of March, the operating rate of graphite electrode market was about 50%. In April, graphite electrode enterprises were affected by epidemic control and other factors, and the increase of market output was limited. Up to now, some graphite electrode enterprises in Hebei, Shanxi and other regions have not started pressing process, and it is understood that under the influence of high cost, some graphite electrode enterprises have continued to suspend part of the production process.

Three, graphite electrode enterprises on the market demand for more optimistic expectations

      Long process steel mills: at present, some long process steel mills are increasing their operation, and the purchase of UHP graphite electrodes with small and medium specifications is increasing. However, due to the influence of the end steel market is still weak and stable, steel mills are mostly purchasing on demand.

      Electric furnace steel mills: the profits of electric furnace steel mills in the first quarter continue to be low, and recently part of the production is lower than the epidemic control and restriction, and steel mills are not working properly. In the first quarter, electric furnace steel mills mainly consume the early inventory of graphite electrodes, so it is expected that the impact of the epidemic will weaken in May, and steel mills will have the demand for replenishment.

      Non-steel: yellow phosphorus, silicon metal and other graphite electrode demand is stable, and due to the RP large specification graphite electrode enterprise production is less, the market demand side performance is better, part of the specification graphite electrode supply is tight.

      Export: at present, although the EU anti-dumping, land and maritime resources and other factors are still limited to China's graphite electrode export, but the Eurasian Union of China's graphite electrode anti-dumping duty on the postponement of graphite electrode export is good, some overseas enterprises and traders have a certain stock demand.

      Since 2022, the price of needle coke and petroleum coke, raw materials upstream of graphite electrode, has been raised several times. As of April 28, the price of low sulfur petroleum coke generally increased 2,700-3680 yuan/ton compared with the beginning of the year, a comprehensive increase of about 57.18%. Since last year, influenced by anode materials market hot, anode materials processing enterprises of graphitization and graphite crucible demand is bigger, the part of the graphite electrode under the influence of corporate profits is negative electrode graphitization and negative crucible, lead to generation of graphite electrode graphitization and roasting process processing resources nervous, graphite electrode graphitization up the cost.

       Since October last year, the start of graphite electrode market has been continuously restricted by the fall and winter environmental protection production limits and the impact of the epidemic. By the end of March, the overall operating rate of the graphite electrode market was about 50%. Some small and medium-sized graphite electrode enterprises under the double pressure of high cost and weak downstream demand, production power is insufficient. At the same time, China's imports of needle coke in the first quarter of last year decreased by about 70%, the overall production of graphite electrode market is insufficient.

       Graphite electrode material is an important material for eAF steelmaking, which accounts for about 70%~80% of the total consumption of graphite electrode in China. Because electric furnace steelmaking is more environmentally friendly than blast furnace steelmaking, in recent years the policy is mainly inclined to electric furnace steelmaking. In 2021, the proportion of eAF steel in China's total crude steel output will rise to 15%, up 5 percentage points compared with 2020. The proportion of eAF steel increases to pull the graphite electrode demand. Under the background of carbon neutralization, the proportion of EAF steel increases or accelerates. Guotai Junan expected graphite electrode industry demand will continue to rise.

       Afternoon forecast: the current graphite electrode market supply and demand two weak, graphite electrode enterprises start insufficient superimposed high cost pressure, graphite electrode enterprises push up the price. But by the downstream demand has not seen a significant improvement, graphite electrode price increase is limited. Therefore, in general, the price of graphite electrode gradually implement the current rise mainly. In the graphite electrode market cost and demand are expected to increase the situation, the graphite electrode price may still rise.