With the start of winter heating season that restricts the steel output in China by a certain percentage, the graphite electrodes prices in the country have registered a fall by RMB 15,000 to 20,000/MT (USD 2,180 to 2,900/MT).
As of this week, the prevailing prices for 450-500mm UHP grade electrodes are assessed at RMB 58,000 – 60,000/MT (USD 8,400– 8,700/MT), 600mm UHP electrode at RMB 90,000-105,000/MT (USD 13,000– 15,255/MT) and 700mm UHP electrodes at RMB 110,000-150,000/MT (USD 15,980 – 21,800/MT).
At the beginning of this week, although the steel mills began to make purchases for the December month, the inquiries dropped dramatically towards the end of the week.
According to the sources, the supply of UHP grade GE of size 550mm is quite abundant. Also, the sentiments in China’s GE market are likely to remain weak in the coming few weeks.
The buyers of GE in the European market has turned active with the start of December month. As per the trade sources, due to upcoming Chinese New Year Holidays in Feb’19, the GE buyers in Europe plan to increase their imports from China. The current import GE prices (of size 500mm-600mm) in Europe from China are heard to be in the range of USD 12,000-16,000/MT FoB basis.
China-based Shanxi Ximu Donghai Carbon Co Ltd a GE producer with production capacity of 35,000 tonnes plan to increase its capacity to 50,000 tonnes in 2019. In Nov’18 the company produced 3,000 tonnes of GE and is expected to produce 3,500 tonnes in Dec’18.
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