The Market Is Still Good, And The Graphite Electrode Market Remains Positive

Market overview: This week, the mainstream prices of China's graphite electrode market were generally stable, and some specifications were slightly raised. The price increase this week is mainly reflected in RP graphite electrodes. On the one hand, the price of raw material low-sulfur petroleum coke continues to be high. According to the feedback from graphite electrode companies, the price of Jinxi low-sulfur calcined coke has risen to 8,100 yuan / ton, and the cost of graphite electrode companies is under pressure. On the other hand, since October 2021, the production of graphite electrode enterprises has continued to be limited, the market has been under-operated, and the supply of some specifications is tight, and the supply side is favorable for the price of graphite electrodes to rise.

Supply: The supply side of China's graphite electrode market is weak and tight this week. Due to the long period of production restriction and strong production restriction in the early Winter Olympics, some specifications of the graphite electrode market are currently out of stock, and the overall supply in the market is tight. In addition, the current price of raw materials in the graphite electrode market is high, enterprises are cautious in purchasing, and the increase in downstream demand is still relatively limited. In the short term, some graphite electrode enterprises still intend to control production.

Demand: This week, the demand side of China's graphite electrode market is just in demand. Affected by environmental protection requirements such as the Winter and Paralympic Games and the current market steel price fluctuations, the downstream steel mills of graphite electrodes are still in the stage of resumption of work. In addition, affected by the conflict between Russia and Ukraine and the EU anti-dumping, the export of graphite electrodes has declined in the short term.

Cost: China's graphite electrode cost pressure is high this week. On the one hand, the price of upstream raw materials for graphite electrodes is currently high, and the prices of low-sulfur calcined coke and needle coke continue to rise this week, and the cost of raw materials is high; The resources of roasting and other processes are tight, the processing cost of graphite electrode process is high and it is expected to continue to rise, and the cost pressure of graphite electrode is prominent.

Profits: The comprehensive profit of China's graphite electrode market is limited this week. On the one hand, the current graphite electrode market is under high cost pressure. On the other hand, some small graphite electrode companies still have individual orders shipped below the market price in order to increase their market share, reducing the overall profit level of the market.

In terms of inventory: This week, the inventory of China's graphite electrode market is basically at a low level. Affected by the long period of production restriction in the Winter Olympics and the greater intensity of production restriction, the overall operation of the graphite electrode market is insufficient, and the inventory of enterprises is low.

Market outlook: At present, the supply of some specifications in the graphite electrode market is weak and tight. The resumption of work in steel mills and the expected increase in the market demand for graphite electrodes are good for the graphite electrode market to maintain a good market. The price of superimposed raw materials is running at a high level, and there is still room for growth in the price of graphite electrodes.