Tight Supply of Large Size Graphite Electrodes in China Supports its Prices

It seems that the Chinese graphite electrodes prices for different sizes are moving in a different direction. While there is no stopping of price plunge for smaller size GE in China, the large size UHP grade electrodes are going stable.

The current price for 450mm UHP grade electrodes are heard to be in the range of RMB 21,000 – 23,000/MT (USD 3,055-3,346/MT) whereas that of 600mm electrodes are in the range of RMB 48,000-60,000/MT (USD 7,000 – 8,700/MT).

The steel mills in China have entered the centralized procurement period in the month of July and although the market inquiry has increased, due to the oversupply of small-size graphite electrodes the price competition is still fierce and the prices are registering drop.
However, in the case of UHP grade 600 mm electrodes which are majorly supplied by Fangda and Kaifeng Carbon, the demand is high but the production is going steady, unlike smaller sized electrodes. The supply of UHP 700mm electrodes is also relatively tight but many new plants such as Dandong Xinxing Carbon are working upon making their large sized electrodes available in the market.

In case of raw materials, the domestic needle coke price is temporarily stable. The domestic mainstream price of coal and oil based needle coke is in the range of RMB 18,000-21,000 per tonne.

Company news:

Tengchong Hongxin New Materials Co., Ltd. has invested in the construction of a 30,000-tonne high-power graphite electrode project. The graphitization furnace was started at the end of last year. The roasting and molding are expected to be done after mid-August this year.

Sichuan Mulun New Material Technology Co., Ltd. has an ongoing project of 40,000 tonnes of ultra-high power graphite electrodes. By the end of July, graphitization will be energized and by the end of August, products will be made available in the market. The company has the capacity of UHP 350-800mm electrodes.

Yunnan Baoshan Yudu Electrode Co., Ltd. has expanded its 40,000-tonnes high-power and ultra-high-power graphite electrode project based on the original graphite electrode capacity of 20,000 tonnes. It has entered the trial production stage in June this year.