Graphite electrode market analysis
Price: in late July 2021, the graphite electrode market entered a downward channel, and the price of graphite electrode gradually decreased, with a total decrease of about 8.97%. Mainly due to the overall increase in the supply of graphite electrode market, and the introduction of coarse steel production policy, superimposed around the high temperature power limiting measures, graphite electrode downstream steel mills as a whole in general, the enthusiasm for graphite electrode procurement weakened. In addition, some small and medium-sized graphite electrode enterprises and individual early production is more active, more enterprise inventory of graphite electrode enterprises in order to increase shipments, there are price reduction sales behavior, resulting in the overall price of graphite electrode market decline. As of August 23, 2021, the price of China’s ultra-high power 300-700mm graphite electrode is 17,500-30,000 yuan/ton, and there are still some orders whose price is lower than the market price.
Cost and profit:
In terms of cost, the price of graphite electrode upstream raw material low sulfur petroleum coke maintained an upward trend, according to the low price of the first half of the year increased by 850-1200 yuan/ton, up about 37%, according to the early 2021 also has about 29% increase; Needle coke price is high and stable, according to the price of about 54% higher than the beginning of the year; The price of coal asphalt fluctuates at a small high level, rising about 55% compared with the price at the beginning of 2021, and the price of upstream raw materials of graphite electrode is high.
In addition, the processing cost of graphite electrode roasting, graphitization and other processes has also risen recently, and it is understood that the power restriction in Inner Mongolia has been strengthened again recently, and the limited electricity policy and the graphitization price of anode materials have been driven up, and the graphitization price of graphite electrode may continue to rise, so it can be seen that the cost of graphite electrode is under great pressure.
In terms of profit, graphite electrode prices have increased by about 31% compared to the beginning of 2021, much less than the increase in raw material prices. Graphite electrode production cost pressure is high, superimposed graphite electrode price downward, the overall profit surface of the graphite electrode market is squeezed. And it is understood that some small and medium-sized graphite electrode enterprises or more inventory in order to ensure shipment, part of the order transaction price has been near the cost line, the overall profit of the graphite electrode market is insufficient..
Production: the recent mainstream graphite electrode enterprises are still basically maintain normal production status, some graphite electrode enterprises are affected by the recent terminal demand and high cost, production enthusiasm is reduced, some enterprises to sell production. It is reported that some graphite graphite electrode enterprises have reduced production plans in the second half of the year, is expected to reduce the supply end of the graphite electrode market.
Shipment: the recent graphite electrode market shipment is generally, according to some graphite electrode enterprises, beginning in late July, the shipment of enterprises has slowed down. On the one hand, due to the restriction of policy guidelines for reducing crude steel output in the second half of 2021 and environmental protection power limiting measures, converter steelmaking is obviously limited, and the purchase of ultra-high power graphite electrode, especially ultra-high power small specifications, slows down. On the other hand, some steel mills downstream of graphite electrode have about two months of inventory of graphite electrode, and steel mills mainly consume inventory temporarily. Graphite electrode market wait-and-see sentiment, less market transactions, general shipments.
Eaf steel is affected by factors such as low season of steel market, narrowing of waste screw difference and limited profit of eAF steel. Eaf steel production enthusiasm is also more general, and steel mills mainly need to purchase.
Graphite electrode export analysis:
According to customs statistics, in July 2021, China’s export of graphite electrode was 32,900 tons, a decrease of 8.76% month-on-month and a year-on-year increase of 62.76%; From January to July of 2021, China exported 247,600 tons of graphite electrodes, up 36.68% year on year. In July 2021, China’s main graphite electrode export countries: Russia, Italy, Turkey.
According to graphite electrode enterprises feedback, affected by the recent epidemic, graphite electrode export blocked. Recently, the freight of export ships has increased by multiple, and it is difficult to find export ships, port containers are in short supply, and graphite electrode exports to the port and pick up the goods after arriving at the destination country are hindered. Some graphite electrode enterprises consider export costs to neighboring countries or domestic sales. Part of the graphite electrode exports through the railway said the impact is small, enterprises export normal.
Market outlook forecast:
In the short term, graphite electrode market supply than to demand situation, and limited factors, such as electric and YaChan constraints, in the short term, the graphite electrode demand side have rebounded, but under pressure from high cost reach profits shrink, part of the graphite electrode enterprises remained steady at will, taken together, weak in the graphite electrode is expected to maintain steady running. With the downstream steel mills and graphite electrode enterprises inventory consumption, and the supply end of the graphite electrode market storage reduction is expected, the price of graphite electrode will quickly rebound.
Post time: Sep-15-2021