China: UHP graphite electrode prices to stay stable in Oct’25

• Firm raw material prices likely to lend cost support
• Weak EAF steel demand expected to weigh on prices

Mysteel Global: After rising steadily during the previous two months, Chinese prices of ultra-high-power (UHP) graphite are seen stabilising in October, Mysteel’s recent report on the market predicts, citing the cost support provided by firm prices of raw materials, plus weakening electrode demand from steelmakers.

As of 13 October, prices of 350-mm diameter UHP graphite electrodes in East China’s Jiangsu stood at RMB 15,000/tonne (t) ($2,108/t), unchanged from the end of September, while those of 600-mm diameter electrodes in Jiangsu also remained flat during the past two weeks at RMB 16,700/t, both excluding the 13% VAT, according to Mysteel’s assessment.

The strengthening of raw material prices, such as petroleum coke and coal tar pitch, had steadily lifted the overall costs of operation incurred by graphite electrode producers, pressing them to strongly defend their selling prices.

As of 13 October, for example, prices of 1# sponge coke offered by Daqing Petrochemical, a branch of China National Petroleum Corporation in Northeast China’s Daqing region, stood at RMB 4,140/t, higher by RMB 30/t from the end of September, according to Mysteel’s tracking.

With rising costs squeezing their profit margins, electrode suppliers have become more cautious about production, meaning that electrode availability will likely shrink in October, the report noted.

However, prices will face downward pressure from waning demand for UHP electrodes from domestic electric-arc-furnace (EAF) steelmakers, the report warned.

Mini-mills in China are expected to reduce production this month in response to the heavy margin losses they continue to suffer, so their consumption of electrodes may drop in tandem, Mysteel’s survey suggests.

By 13 October, the average loss on rebar sales incurred by the 67 independent EAF mills under Mysteel’s tracking was RMB 156/t, the largest since August last year.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.