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Increasing costs and insufficient profits, graphite electrode prices are still expected to rise.

 Market overview: Graphite electrode market prices remained stable this week. This week, the price of low-sulfur petroleum coke, the upstream raw material of graphite electrodes, stopped falling and stabilized. The negative impact on the raw material surface of graphite electrodes weakened, and the wait-and-see attitude of the graphite electrode market eased slightly. Under the pressure of high prices of needle coke and coal pitch, which are the raw materials for graphite electrodes, most of the mainstream graphite electrode companies have firmed their quotations. In addition, this week’s graphite electrode downstream electric furnace steel still maintains a high operating level, and the graphite electrode just needs to be stable. Most of the mainstream graphite electrode companies also said that the company’s shipments are stable. It can be seen that the graphite electrode demand side support still exists.
Supply: The graphite electrode market maintained a tight supply this week. This week, the supply of ultra-high-power small and medium-sized graphite electrodes in the graphite electrode market continued to be tight. The main reason is that mainstream graphite electrode companies produce more ultra-high-power and large-size graphite electrodes. Small and medium-sized graphite electrodes account for a small production share, and due to downstream demand consumption, market inventory is not available. With an increase, the supply of small and medium-sized graphite electrodes is still tight.
Demand side: The graphite electrode market demand side maintained a good overall performance this week. This week, the operating rate of China’s electric furnace steel plants remained at a relatively high level. With the support of rigid demand, sentiment on the purchase of graphite electrodes was relatively good. In addition, according to feedback from graphite electrode companies, although the freight rate of export ships has remained at a high level recently, the tight supply of export ships has eased, and the overall performance of graphite electrode exports has been improving.

In terms of cost: The cost of graphite electrodes has shown a rolling increase this week. The price of low-sulfur petroleum coke stopped falling and stabilized this week, and the negative impact on the graphite electrode raw material surface was weakened; the price of needle coke remained high this week, the price of coal pitch continued to rise, and the cost of graphite electrodes was still increasing.
In terms of profit: The overall profit of the graphite electrode market is still insufficient this week. The graphite electrode market price has been running steadily recently, and the rolling increase in cost is still compressing the profit margin of the graphite electrode market.
 In terms of inventory: There is basically no excess inventory accumulation in the graphite electrode market this week. This week, most graphite electrode companies have stable production, and the downstream demand of graphite electrodes is just stable, and there is no accumulation of excess inventory in the market. Some mainstream graphite electrode companies indicated that they would keep part of the normal turnover inventory, and some small and medium-sized graphite electrode companies indicated that the company had basically no inventory.
Outlook forecast: The cost of graphite electrode market remains high this week, and the price of low-sulfur petroleum coke has stabilized, and the cost of graphite electrode support will increase. In the state that the overall profit of the graphite electrode market is still insufficient, the price of the graphite electrode market still has the possibility of pushing up, and it is expected to increase by 1,000 yuan/ton.


Post time: Jun-08-2021