After the Lunar New Year holidays in mid-February, the demand for Graphite electrode (GE) in China picked up gradually in the month of March. As the EAFs (Electric arc furnace) steel producers stocked up GE before going for spring holidays, the purchase of the same got postponed, adversely impacting its prices. The domestic prices of Graphite electrode in the country declined marginally.
The prices of UHP grade GE in initial weeks of March, 450mm were heard in the range of RMB 95,000 per tonne (USD 15,064/MT), while 550mm were in the range of RMB 120,000 – 125,000 per tonne (USD 19,000 – 19,820 per tonne).
However, according to market sources, the inquiries for GE in the country’s domestic market gained momentum once again in the last week of March and is expected to continue throughout the month of April. The shipments of some GE suppliers have increased from 60-70 tonnes to 100-200 tonnes during Mach end.
Subsequently, in last week of March GE prices moved up. UHP grade GE 450mm was being offered at RMB 95,000 – 110,000 per tonne (USD 15,000 – 17,450 per tonne), 550 mm in RMB 125,000 to 130,000 per tonne (USD 19,800 – 20,600) and 650 mm in the range of RMB 135,000 to 150,000 per tonne (USD 21,400 – 23,800 per tonne). All prices include VAT of 17%.
While China’s domestic steel prices fell in the starting weeks of March, prices climbed up towards the end of the month and are expected to remain positive in the following month. With this, the demand for GE from EAFs is also expected to increase in April.
Nonetheless, as the supply of graphite electrodes is quite sufficient at present, and price fluctuations are not very high, the domestic EAFs steel manufacturers are buying GE to meet only their one-month requirement.
Chinese companies add to their GE capacities
A local GE producer in China, Feiyue Carbon Company Ltd. in Handan city built two new high-power graphite electrode production lines this year, with an estimated production capacity of 7,000-8,000 tonne per year which was expected to start in March end. Combined with previous production lines, the company’s graphite electrode production capacity will reach 20,000 tonnes per year.
Another company named Hebei Yingxiang Carbon Co. is expected to build a 20,000 tonnes UHP grade electrode project with a total investment of 300 million yuan which is expected to be completed by the end of 2020. The project is expected to start in the month of April and a planned investment of RMB 100 million yuan is expected to be completed by the end of 2018.
Ulan Qab Fuxing Carbon Co. Ltd’s construction of UHP 550-600mm specification GE has been finished and will start its production from this month. The March output of graphite electrode from this plant was 1,500 tons which are expected to reach 2,000 tons in May and the total output in 2018 is expected to reach 20,000 tonnes.
On March 16th, Tangshan Yiyuan Carbon Products Co Ltd., with a total investment of 200 million yuan, officially launched the 20,000-ton high-power electrode, ultra-high-power electrode, and middle-coarse special graphite product. The project involves a construction of 20,000 tons of high-power electrodes, ultra-high power electrodes and medium and coarse special graphite products annually. The project is expected to start construction in early May 2018 and complete investment by the end of 2019.
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