The plunge in graphite electrodes prices is having a direct impact on China’s domestic needle coke prices also. As per SteelMint analysis, the country’s needle coke prices have registered a plunge of about 53% since the start of 2019 and are currently trending in the range RMB 12,000 – RMB 15,000/MT (USD 1,700 – 2,100/MT).
Earlier it was anticipated that the needle coke prices in China wont plunge so dramatically given the simultaneous demand from the electric vehicles’ battery segment. However, the fall in GE prices outweighed the needle coke demand from battery industry resulting in its subsequent downfall.
As per the market participants, there are very few suppliers in China that manufactures needle coke required to produce UHP grade electrodes. Thus, the country is dependent upon imports to meet its NC requirements.
As per the customs data, China imported about 209,245 tonnes of needle coke during Jan-Oct’19, recording an increase of 4% against the corresponding period of previous year. During the month of Oct’19, China’s needle coke imports recorded a plunge of 39% y-o-y basis and stood at 21,104 tonnes. The country majorly imports petroleum-based needle coke and the top countries supplying the same are U.S., Japan, and South Korea.
In terms of imported needle coke prices in China, the same is being offered in the range of USD 3,600 – 3,800/MT from Japan, USD 4,000 – 4,200/MT from U.S. and USD 2,100/MT – USD 2,200/MT from Korea, CFR basis, as per the information received from our market sources based in the country. The imported needle coke prices are anticipated to fall in the coming year of 2020, given the poor electrodes demand globally.
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