Trade in China is closed this week amid ongoing National day holidays till 10 Oct’20. As a result, no changes in Graphite electrodes (GE) prices have been observed this week.
However, towards the end of last week, downstream mills actively procured electrodes stock resulting which GE prices moved up by RMB 200 – 1,000/t ($30 – 147/t). The steel production rate via EAF route in China has improved and companies are actively exporting their products apart from increased domestic production.
The UHP grade electrodes prices of 600mm are currently being assessed at RMB 19,000-20,000/t ($2,800-2,900/t) whereas HP grade 450mm electrodes are at RMB 13,000-14,500/t ($1,900-2,135/t).
However, this recovery in prices is still not sufficient to compensate for the losses that the GE companies suffered over past few months due to COVID-led tepid demand.
Needle coke market scenario
Amid good downstream and GE demand, needle coke market is operating smoothly and majority of manufacturers have raised the prices. Currently coal-based needle coke prices are assessed at RMB 4,000-6,000/t ($590-883/t) whereas petroleum-based needle coke is at RMB 6,000-7,200/t ($885-1,060/t).
However, while the market transactions and prices have improved, the needle coke market may come under pressure. This is because in August and September, many needle coke companies have resumed their production and many have even started their new operations. In case demand didn’t increase in proportion to supplies, the price of needle coke would suffer once again.
Outlook ahead
With an intention to control pollution during winters, production cuts start in China between October-March. As a result, steel production via EAF route would get a boost over blast furnaces in the upcoming months and GE prices in the country would get some support in the market.
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