The price of graphite electrode in China is increased today. By November 8, 2021, the average price of graphite electrode in China’s mainstream specification market is 21821 yuan/ton, up 2.00% from the same period last week, up 7.57% from the same period last month, up 39.82% from the beginning of the year, up 50.12% from the same period last year.The price increase is still mainly affected by the cost and supply of two positive effects.
About Cost: upstream raw material price of graphite electrode still shows an upward trend. In early November, the price of low sulfur petroleum coke rose 300-600 yuan/ton, driving the price of low sulfur calcined coke to rise 300-700 yuan/ton simultaneously, and the price of needle coke rose 300-500 yuan/ton; Although the price of coal asphalt is expected to fall, the price is still high. Overall, the cost of graphite electrode market is obviously pressurized.
Supply: at present, the overall supply side of the graphite electrode market is tight, especially the ultra-high power and small specification graphite electrode. Some graphite electrode enterprises said that the supply of enterprise is tight, and there is a certain pressure on the supply. The main reasons are as follows:
1, Graphite electrode mainstream enterprises are mainly to produce ultra-high power and large specifications of graphite electrode, the production of small and medium-sized specifications of graphite electrode in the market is relatively less, supply is tight.
2, The provinces are still in the implementation of power rationing policies, power rationing in some areas has slowed down, but the overall start of the graphite electrode market is still limited, in addition, some areas have received a notice of environmental protection production limit in winter, and under the influence of the Winter Olympics, the production limit has expanded, graphite electrode output is expected to continue to reduce.
3, In addition, under the influence of power limit and production limit, graphite chemical sequence resources are tight, on the one hand, lead to prolonged production cycle of graphite electrode. On the other hand, the rising cost of graphitization processing leads to an increase in the cost of some non-complete process graphite electrode enterprises.
Demand: at present, the overall demand side of the graphite electrode market is mainly stable. Under the influence of limited voltage production, the overall start of the downstream steel mills of graphite electrode is insufficient to affect the steel mills’ purchasing mentality of graphite electrode, but the supply of graphite electrode market is tight, and the price rises stimulate, steel mills have a certain replenitation demand.
Export: It is understood that China’s graphite electrode export market performance has improved, some graphite electrode enterprises feedback that export orders have increased. However, the eAU and EU anti-dumping measures still exert certain pressure on China’s graphite electrode export, and the overall performance of the export market is mixed with positive and negative factors.
Current market positive:
1. Some export orders were re-signed in the fourth quarter, and overseas enterprises needed to stock up in winter.
2, export sea freight decreased, export ships and port container tension has eased, graphite electrode export cycle has been reduced.
3. The final anti-dumping ruling of THE Eurasian Union will be formally implemented on January 1, 2022. Overseas enterprises of the Eurasian Union, such as Russia, will try their best to prepare goods in advance.
Final award:
1. Under the influence of anti-dumping duty, the export price of graphite electrode increases, and some small and medium-sized graphite electrode export enterprises turn to domestic sales or export to other countries.
2, according to the part of the mainstream of graphite electrode enterprises, graphite electrode export though an anti-dumping duty, but the price of graphite electrodes in China still has certain advantages in export market, and China’s graphite electrode production accounts for 65% of global graphite electrode production capacity, supply play an important role on global graphite electrode, graphite electrode international demand under the condition of stable, graphite electrode is still demand for China. To sum up, it is expected that China’s graphite electrode export may decrease slightly rather than significantly.
Future forecast: under the influence of power limit and production limit, in the short term, the graphite electrode market supply is tight and the downstream procurement is based on the current situation is not easy to change. Under the cost pressure, graphite electrode enterprises save a certain reluctance to sell, if the price of raw materials continues to rise, it is expected to drive the market price of graphite electrode to continue to rise steadily, the increase is expected to be about 1000 yuan/ton.
Post time: Nov-09-2021