SteelMint has heard from its market sources that the global graphite electrodes trade market have turned silent this week amid market and pessimistic outlook and sufficient supply in the market. The current price for 450mm HP grade GE is heard to be around USD 5,700/MT, CFR Europe whereas the price of 600mm UHP grade GE is about USD 8,500/MT, CFR Asia.
Traders in Europe and Asia are anticipating that the electrodes prices may go down further in February month amid sufficient supplies from China and India and thus a number of buyers have opted for wait and watch mode resulting in fewer trade deals.
Amid the sanctions on Iran imposed by U.S. in August and November last year, Chinese and Indian GE suppliers have stopped their trade in the Iranian market. This has led to increased electrodes supplies from both the China and India and subsequently the traders of both the countries have started focusing more on Mexico and U.S steel market. As electric arc furnace (EAF) steelmakers in U.S. are positioned to aggressively increase their capacity post restrictions on country’s steel imports, the business climate for graphite electrodes in the states looks highly favourable.
As per the market sources, GE buyers in the European market have already purchased their electrodes requirement and are currently not buying anything in anticipation that the Chinese GE prices may go down further in Q1 CY19.
Troubled by the falling steel prices and halt of logistic services due to Spring festival, the GE producers in China have cut down their electrodes production weighing down needle coke demand in the country. The prices for China-origin needle coke turned unstable last week as deals from downside GE manufacturers were less amid lower operating rates of the steel mills. The needle coke prices in China are expected to remain unchanged this week because of the ongoing Chinese New Year Holidays.
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