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The graphite electrode market will maintain a steady upward trend.

Although the graphite electrode market has been in a six-month upward cycle, the current main graphite electrode companies are still in a state of breakeven due to the rising factors of raw materials.  At this stage, the cost pressure of the graphite electrode market is prominent, and the price of graphite electrodes will continue a steady upward trend. The specific influencing factors are as follows:

1. Cost pressure: The current graphite electrode raw materials are adjusted frequently, and graphite electrode raw materials are low-sulfur petroleum coke, needle coke. The price of calcined coke and pitch have basically maintained an overall upward trend, and the cost pressure of the graphite electrode market is obviously high.. Under the pressure, graphite electrode companies have to increase prices to maintain their balance of payments.

2.Supply is tight:

(1) Graphite electrode companies have a wait-and-see mood in production

(2) The supply of some spot resources is tight.

(3) Dual control of energy consumption in Inner Mongolia.

3.The demand side:

(1)After the Spring Festival, the electric arc furnace steel market is still at a relatively low level. Some steel mills still have stocks of graphite electrodes that have not been consumed, and steel mills have a mediocre performance in purchasing graphite electrodes.

(2) As the price of graphite electrode raw materials is still rising, and due to the tight supply of ultra-high-power small and medium-sized specifications in the graphite electrode market, the downstream market is gradually accepting the continuous increase in graphite electrode prices.

(3) In the graphite electrode export market, shipping freight is relatively high recently, and graphite electrode exports are subject to certain restrictions.

Market outlook: At present, under the situation that there is a good trend in the demand side of the graphite electrode market, the price of graphite electrodes will steadily rise as the price of raw materials rises due to the continuous increase in cost.


Post time: Mar-19-2021