How Chinese Graphite Electrode Market Looks Like in First Week of June?

As SteelMint has reported, China’s graphite electrode prices saw a mild rebound in prices in the month of May. In early May, the rapidly rising operating rate of steel plants using electric furnaces spurred by a surge in steel prices had boosted demand for high diameter 500-600mm UHP grade graphite electrodes.

With the coming of electrode purchase season in mid-May, the electrode producers saw a significant surge in price inquiries and their subsequent purchase transactions, causing electrode prices, especially price of UHP grade electrode with the diameter ranging from 500mm to 700mm to recover further.

While prices remained stable for a week post mid-May, the market heated up once again towards the end of May continuing the trend in the first week of June. The prices of mainstream graphite electrode have increased by RMB 10,000 to 20,000/MT (USD 1,560 – 3125/MT). Since late May, small sized electrodes such as UHP 450mm have also begun to rebound.

The prevailing price of UHP graphite electrode 450mm ranges from RMB 85,000 to 95,000/MT (USD 13,275 – 14,840/MT), UHP electrode 600mm from RMB 110,000 to 140,000/MT (USD 17,180 – 21,865/MT) and electrode 700mm from RMB 140,000 – 165,000/MT (USD 21,865 – 25,770/MT). The prices of GE’s key raw material, needle coke is relatively stable.

New GE supplies likely to hit the Chinese market

On the supply side, the country is currently having sufficient supplies of the graphite electrode. Pingdingshan Sanji Carbon Co, a company that mainly produces HP electrode, is estimated to supply its UHP grade electrodes in mid-June whereas Ulanqab Fuxing Carbon’s new batch of UHP electrode 700mm products are expected to come out in late June or early July.

China’s graphite electrode exports in Apr’18

In April 2018, China’s GE exports were recorded at 42,686 tonnes, up by 35% against Apr’17. The ordinary power GE exports stood at 3,847 tonnes, down by 0.29% y-o-y basis, high power GE exports were at 11,786 tonnes, up 6.02% from a year earlier. UHP graphite electrode exports stood at 27,053 tonnes, an increase of 63% y-o-y basis.

News Inputs from ICC Carbon