China’s graphite electrode (GE) prices that have been continuously falling since mid-Nov’18 have turned stable this week amid the positive sentiments in country’s steel market due to the liquidity boost announced by the Chinese government.
The prevailing prices of UHP grade GE of size 450mm is RMB 42,000-45,000/MT (USD 6,129-6,566/MT), 550mm is RMB 67,000-80,000/MT (USD 9,777-11,674/MT) and that of 600mm is RMB 77,000-90,000/MT (USD 11,236 -13,133/MT).
China’s central bank last week has cut the amount of cash that banks have to hold as reserves for the fifth time in a year, freeing up RMB 800 billion yuan (USD 116 billion) for new lending. Such a move by the bank will effectively increase loan funding sources of small, micro and private businesses and boost confidence in the economy.
This decision at the beginning of the year has created positive sentiments in the steel market also, improving its expectations over the optimistic macro-economic situation.
In the upcoming days, the GE prices in China are expected to remain stable or positively move up as before the Spring Festival in February month, the willingness of steel mills to stock up GE is relatively strong which will lead to its increased demand and so its prices.
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