Weekly Review on China's Graphite Electrode (Feb 17-23, ...

Market overview

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This week, low-priced graphite electrodes in China's market has shown a rising sign. The cost of raw materials keeps going up, supporting the price of graphite electrodes at a relatively high level. However, the insufficient demand refrains graphite electrode&#;s prices from a rapid and immediate rising, which graphite electrode producers are much eager for considering the current profit situation.

Supply

No major change in the supply of China's graphite electrode market this week. At present, most graphite electrode producers have resumed production, but due to the soft demand downstream and high price of raw materials upstream, some of producers still reserve part of production capacity.

Demand

the demand in China's graphite electrode market is not good this week. This week, the market demand is yet recovering. The in-operation capacity of EAF steel mills edged up in late February, and the southern steel mills are in a staggered-peak production.

Cost

The price of low-sulfur petroleum coke, raw material for graphite electrodes, continued to rise, boosting confidence in graphite electrode producers. Based on the current prices of low-sulfur petroleum coke, coal tar pitch, and needle coke in the graphite electrode market, theoretically, the production cost of the graphite electrode market remains at 3,100 dollars/ton (Ex-works, VAT).

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Profit

the overall profit of China's graphite electrode market is insufficient this week. In order to change the situation of insufficient profits, the producers are getting more and more reluctant to get the deal done at a low price, and some have already rejected low-priced orders. In other words, cheap resources are less and less found in the market. Even in this case, some graphite electrode producers are still losing money.

Availability

The current availability of China&#;s graphite electrode in the market is at a low-to-medium level this week. Affected by poor demand, continuous rise of raw materials cost and difficulty in increasing the price of graphite electrodes, some graphite electrode companies have controlled its stock.

Forecast

Affected by the frequent price increases of upstream raw materials in the graphite electrode market, graphite electrode companies generally have the willingness to increase prices. However, the current graphite electrode market orders are insufficient, and demand recovery is slow. Under the expectation of good demand in the graphite electrode market, the price of graphite electrodes may rise simultaneously with the increase in cost, and the increase is expected to be 150 dollars/ton.

source:http://www.baiinfo.com/Orders/News//, original in Chinese

What is Graphite Electrode?

Graphite electrode, a conductor that releases electric energy in the form of an electric arc, is used to heat and melt the steel scraps in an electric arc furnace. They are currently the only products with high electrical conductivity and are able to maintain extremely high heat generation in this demanding environment. With the growing demand for quality steel in the aerospace, automotive and electronics industries, graphite electrodes are also becoming increasingly popular.

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