The impact of anti-dumping duty removal on graphite electrode imports from China can be seen now as there is a dramatic increase in India’s GE imports from China in Jan’19.
According to customs data, India imported about 1,030 tonnes of electrodes in January this year against just 395 tonnes in Jan’18 registering a y-o-y growth of more than 150%.
Out of these 1,030 tonnes imported, about 98% of imports came from China. In December 2018, India had imported 1,404 tonnes of electrodes with only 30% being contributed from China.
In the first ten months of FY19, India imported about 6,357 tonnes of graphite electrodes thus registering a growth of 73% against the corresponding period of the previous fiscal year 2018-19. During Jan-Apr’19, India imported the highest quantity of 3,621 tonnes of GE from China, followed by 1,535 tonnes from Malaysia.
As per the market sources, India is facing tough competition from Chinese imports of especially lower grade HP (High Power) and RP (Regular Power) GE resulting which the Indian manufacturers have revised their HP/RP grade prices.
In China, although the production of UHP grade electrodes is increased, the surge in lower grade GE production is much higher. This is coupled with poor tepid domestic demand from downstream industries, resulting which China’s GE prices are falling. In a period of just four months from Nov’18 to Mar’19, China’s HP grade Graphite Electrode price of size 450mm has plunged by 60% and is currently RMB 30,000 (USD 4,470/MT).
“With the removal of the anti-dumping duty, importing Chinese Graphite Electrode has become quite feasible and given the current HP grade electrodes price in China, importing the same even after including all the duties is still proving to be cheaper for us compared to buying Indian products. Thus, Indian Graphite Electrode producers have no option but to revise their prices,” said a GE buyer from India.
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