The graphite electrode prices in China continued to be weak with supply exceeding demand. As the year end approaches amid the poor domestic downstream purchases, the graphite and carbon companies have taken the initiative to clean up their inventory and are proactively shipping their produce in the overseas market at lower rates.
The EAF operating rates across Chinese electric arc furnace (EAF) steelmakers has declined as losses resurfaced on the back of weakening rebar prices. Most Chinese steelmakers reported steep declines in profits, which have pushed them to the verge of losses. As relatively lower prices resulted in heavier losses in East China’s markets, local steel mills have considered taking a holiday earlier than usual on January 3, compared with the scheduled January 10-15 at steel plants in other regions.
According to the market sources, with the continued poor market conditions, there will be more and more production suspensions and cuts of graphite electrodes due to profit inversions and capital disruptions, and the reshuffle will gradually progress and intensify.
As of now, the mainstream price of 300mm-600mm ultra-high power graphite electrodes in China is RMB 12,000-35,000/MT (USD 1,715 – 5,000/MT), the mainstream price of high-power graphite electrodes 300mm-600mm is RMB 11,500-15,000/MT (USD 1,645 – 2,144/MT), and the mainstream price of ordinary power graphite electrodes 300mm-600mm is RMB 10500 -12,000/MT (USD 1,500 – 1,715/MT).
The needle coke market is mainly weak BUT stable this week. Affected by the downstream carbon industry, the market continues to be depressed and the market price is under pressure. As of now, the mainstream price of Chinese oil-based needle coke is RMB 10,000-12,000/MT and the price of Chinese coal-based needle coke is RMB 10,000-11,000/MT
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