With the high cost of graphite electrodes and the relatively weak downstream demand, sentiment in the graphite electrode market has diverged recently. On the one hand, the recent market supply and demand is still showing an imbalanced game state, and some graphite electrode companies still have a strong desire to ship and heap up stock;On the other hand, the production cost of graphite electrodes is high, and the overall market profit is insufficient. In order to avoid cost inversion,Graphite electrode companies are also willing to stabilize prices.
As of September 6, 2021, mainstream prices of graphite electrodes in China with a diameter of 300-600mm: ordinary power 15000-18000 yuan/ton; high-power 17000-20500 yuan/ton; ultra-high power 17000-25000 yuan/ton; ultra-high-power 700mm graphite Electrode 27000-30000 yuan/ton. The average market price of mainstream graphite electrodes in China was 20,286 yuan/ton, a decrease of 7.49% from the same period last month, a 29.98% increase from the beginning of the year, and a 54.10% increase from the same period last year.
High pressure on the cost of graphite electrodes:
1. The prices of needle coke and coal pitch in the upstream of graphite electrodes are high, and the price of low-sulfur petroleum coke continues to rise, driving the pressure on the cost of graphite electrodes to increase.
2. Affected by factors such as power curtailment in Inner Mongolia and floods in Henan, and attracted by the high profit of negative electrode graphitization, part of the graphite electrode graphitization capacity is converted to negative electrode graphitization capacity. Graphite electrode graphitization resources are tight, and graphite electrode baking, Graphitization processing costs have risen.
The overall supply sentiment of the graphite electrode market is divided. Since the price of low-sulfur petroleum coke fell in May, some small and medium-sized graphite electrode companies have reduced production under the influence of market wait-and-see sentiment. In July-September, the graphite electrode terminal finished material market is off-season, and the price of superimposed raw materials continues to rise. Some graphite electrode companies have plans to reduce production and production, and the initial production capacity of the graphite electrode market is gradually consumed.
♦Individual mainstream manufacturers are more active in the early stage of production, and recently released their production capacity, focusing on active shipments, but the mainstream graphite electrode corporate customers are relatively stable and there is basically no pressure on shipments.
♦Part of the small and medium-sized graphite electrode companies have a low market share. In addition, due to the off-season of terminal demand, companies focus on active shipments, and the transaction prices of individual orders are slightly lower than the market.
♦Part of the graphite electrode companies with relatively stable production and sales and low inventories, under cost pressure, the company’s reluctance to sell is more obvious. In order to avoid cost inversion, some companies have slightly increased the price of graphite electrodes.
On the one hand, the graphite electrode stocks purchased by some electric furnace steel plants in the early stage are gradually depleted. It is reported that some electric furnace steel plants have procurement plans in the near future.
On the other hand, as the upstream raw material prices of graphite electrodes continue to rise, some electric furnace steel mills and some graphite electrode traders believe that the price of graphite electrodes is close to the rebound node, and the downstream of graphite electrodes are actively hunting down the bottom. However, under the pressure of the cost of graphite electrode companies, there is Reluctant to sell emotions.
In addition, the summer high temperature weather will pass, the off-season of the graphite electrode terminal finished product market will pass, and the recent snail and finished product trend will be strong, boosting the market, the operating rate of electric furnace steel plants has rebounded slightly, and the demand for graphite electrodes has increased.
Recently, the downstream enterprises of graphite electrode actively take goods from the bottom of the stack of graphite electrode cost is high, there is a certain reluctance to sell the graphite electrode market. Under the situation of cost pressure and good demand in the downstream silicon metal market, the price of ordinary and high power graphite electrode has taken the lead to rebound, and individual graphite electrode enterprises with low inventory have also slightly increased the price of ultra-high power graphite electrode. With the further consumption of graphite electrode market inventory, it is expected that in the middle of 9 after the end of steel bidding, graphite electrode prices may rebound.
Post time: Sep-23-2021