The GE prices in China (especially higher grade) that have been falling since the past few months amid the COVID-19 outbreak, seems to have stabilised this month.
The 450mm HP grade electrode prices are being traded between RMB 12,500 -13,000/MT whereas UHP grade 600mm is in the range of RMB 23,500 – 25,000/MT.
According to the market sources, although the domestic demand for GE has not picked up significantly, it has improved against previous months, thus supporting the prices. The capacity utilization of EAF steel mills stands to be around 70%, which is close to a peak of 80% last year.
The downstream steel demand in China improved gradually in May amid pickup in construction and manufacturing activities. Although mills have sufficient stocks of electrodes with them at present, the GE manufacturers are hopeful that the piled-up inventory will be cleared soon and that demand for electrodes will eventually surge.
In the case of the export market, although industrial activities in many countries have resumed this month, the foreign inquiries for electrodes have stagnated amid huge stocks with the steel mills. In fact, trade sources have informed us that many pre-orders have been delayed for at least a month. However, it is anticipated that demand for Chinese GE will improve in June especially due to increased inquiries from the Middle East.
Between Jan to Apr’20, 18 key graphite electrode manufacturers in China nationwide produced 168,800 tonne of graphite electrodes registering a fall of 19% y-o-y basis.
Like electrodes, its raw material, needle coke prices have also turned stable this month and are currently being traded at RMB 6,500-7,000/MT.
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