According to SteelMint sources, the Graphite electrode (GE) prices in China have remained unchanged week on week basis.
The prevailing prices for 450mm UHP graphite electrode are being heard in the range of RMB 63,000-70,000/MT (USD 9,212 – 10,235/MT), 600mm UHP graphite electrode are at RMB 90,000-110,000/MT (USD 13,160 – 16,084/MT) and 700mm UHP graphite electrode are in the range of RMB 130,000-145,000/MT (USD 19,000 – 21,200/MT).
China’s steel exports have registered a fall of about 15% y-o-y basis to 28.7 MnT in the first six months of 2018 amid its capacity cuts and increased domestic demand. This has helped to push up the price of graphite electrodes, bringing support to graphite electrode manufacturers during six months period of Jan-Jun’18.
In the upcoming months of 2018, the steel prices in China are likely to remain firm. This coupled with strong domestic demand and increased usage of electric furnaces for steel production will support the country’s graphite electrode prices in the long run.
On the supply side, China is likely to add about 80,000 MT of Graphite electrode capacity in 2018 in Neimenggu, Shandong, and Shanxi provinces. Out of the total capacity to be added about 60% will be the addition in HP (high power) grade and the remaining 40% will be in UHP (ultra-high power) grade. China’s existing idle GE capacity of 150,000 MT is also likely to resume their operations in 2018 which means that the country is likely to have additional graphite electrode capacity of 230,000 MT.
Thus, amid increased demand and supplies addition for graphite electrodes, the GE prices in China are likely to remain firm with minor fluctuations.
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