Despite the gloom in China’s graphite electrodes sector where the GE prices are continuing to remain weak with no pickup in downstream demand, the domestic players are continuing to have capacity additions.
In a recent update that SteelMint has received, a key GE player, Datong Yulinde Carbon has put into operations its UHP grade GE production line with an annual output of 30,000 tonne that can produce electrodes of size 600mm or more, making its total capacity reach 60,000 tonnes per year. The total investment involved is RMB 240million (USD 31.14 million) and the project is quite technologically advanced which includes calcination process that can improve the density, strength, conductivity and oxidation resistance of the electrodes, as informed by the company sources.
Datong Yulinde Graphite Equipment Co., Ltd. was established in May 2012 with a registered capital of 72.6 million yuan and is mainly engaged in the production and sales of graphite electrodes. The company’s two-thirds of the products are sold to reputed steel plants such as TISCO, Baotou Steel, Hegang, Daye Special Steel, Qingsteel, CITIC Pacific, etc and are also exported to United States, Brazil, Europe and Southeast Asian countries.
A company named, Jimeng Carbon is also set to add 120,000 tonne of UHP grade (600mm) graphite electrode plant with a total investment of 2.45 billion yuan. The project is being completed in two phases and the first phase that has already started involves investment 1.7 billion yuan with 80,000 tonne of capacity whereas the second phase involves 750 million yuan investment to build 40,000-ton large-scale ultra-high-power graphite electrodes production unit. The whole project is expected to be put into operation by June 2021.
Another company called Gaoshuo (Taigu) New Material Technology Co., Ltd. has unveiled its plan to build a new high-power graphite electrode project with an annual output of 40,000 tonne that involves an investment of RMB 1.05 billion yuan. The company is already engaged in the GE production and with the new production line, its total capacity will touch 120,000 tonne.
According to IC Carbon, China GE capacity is all set to increase from 1.40 MnT in 2018 to 1.93 MnT in 2019 and 2.38 MnT in 2020. China. While the big players are continuing to have capacity expansions, many small players have shut down their units as they are unable to sustain the high cost of production.
Leave a Reply