Weak Supply And Demand, The Profit of Low-sulfur Calcined Coke Decreased Slightly

I.The profit of low-sulfur calcined coke decreased by 12.6% from the previous month

Since December, international crude oil has fluctuated, market uncertainties have increased, industry players have become more wait-and-see, raw material low-sulfur coke market shipments have weakened, inventory levels have increased, and prices have sporadically dropped. Low-sulfur calcined coke market has followed the market, and prices Slight drop. In this cycle, the theoretical average profit of low-sulfur calcined coke in Northeast China is 695 yuan/ton, which is 12.6% lower than last week. At present, the profit of calcined enterprises is relatively stable, maintaining at a medium-to-high level. The market price of raw material low-sulfur coke was lowered sporadically, and the market for low-sulfur calcined coke was weak and stable, with sporadic downward adjustments.

This week, the price of high-quality low-sulfur calcined coke remained weak and stable. The price of calcined coke using Jinxi raw coke as raw material is about 8,500 yuan/ton, and the price of calcined coke using Fushun raw coke as raw material is 10,600 yuan/ton. The enthusiasm of users to purchase is average, and the market is weak and stable.

II.Low-sulfur raw materials, petroleum coke prices fluctuate within a narrow range and decline

In this cycle, the low-sulfur petroleum coke market in Northeast China had flat transactions, the shipment speed of refineries slowed down, the inventory level of enterprises increased, and the price of petroleum coke continued to decline. The listing price of high-quality 1# coke is 6,400 yuan/ton, a month-on-month decrease of 1.98%; the price of ordinary quality 1# coke is 5,620 yuan/ton, a month-on-month decrease of 0.44%. Liaohe Petrochemical’s new round of bidding was slightly lowered, and Jilin Petrochemical’s price was temporarily stable in this cycle. At present, the market has a mentality of buying up and not buying down. The downstream carbon industry is mainly on the sidelines, and there is no intention to stockpile goods. Enterprises maintain low inventories, and their purchasing enthusiasm is not good.

III. Downstream graphite electrode manufacturers produce at low load, and downstream demand is weak

This week, the graphite electrode market remained stable and shipments were stable. Most manufacturers maintained the current balance. The downstream demand was not strong, and there was still resistance to pushing up graphite electrode prices. Graphite electrode manufacturers have low-load production, and downstream demand has not been significantly boosted. In addition, production profits are not good, and manufacturers are not motivated to start operations.

Outlook forecast:

It is expected that next week, the market demand for graphite electrodes will not improve significantly, and manufacturers will stabilize prices and negotiate shipments. In the short term, the downstream demand in the low-sulfur calcined coke market is weak, and there are no obvious positive factors. The price of low-sulfur calcined coke may drop in a narrow range, and the profit margin remains at the middle level.