- New Year shutdowns to reduce supply, demand
- Rising raw materials prices to offer cost support
Mysteel Global: After moving downward for two months straight, Chinese prices of ultra-high-power (UHP) graphite electrodes are expected to stay stable in February as both supply and demand will likely shrink around the Chinese New Year (CNY) holiday this month, Mysteel’s recent report on the market predicts.
As of the end of January, prices of 350 mm diameter UHP electrodes in East China’s Jiangsu province stood at RMB 14,700/tonne ($2,119/t), lower by 1.3% from a month earlier, while that for 600 mm diameter electrodes in the province had fallen 1.8% m-o-m to RMB 16,200/t, both excluding the 13% VAT, according to Mysteel’s assessment.
This month, electrode demand from domestic electric-arc-furnace (EAF) steelmakers will likely fall to this year’s lowest level as most mini-mills will stop operations for two to three weeks starting from mid-February to allow staff to enjoy their CNY holidays, Mysteel’s survey showed.
Meanwhile, most graphite electrode manufacturers will also halt production during the 15-23 February CNY break, leading to a decline in electrode supply nationwide, Mysteel Global learnt.
Although some electrode producers plan to keep operating normally throughout this month, they will struggle to maintain regular shipments as logistics services are suspended or severely restricted during the holiday, Mysteel’s survey suggests.
On the other hand, prices of raw materials for UHP graphite electrodes firmed during the past month, which will provide some cost support for electrode prices, Mysteel Global noted.
By 30 January, for example, prices of 1# sponge coke offered by Daqing Petrochemical, a branch of China’s National Petroleum Corporation in Northeast China’s Daqing region, were RMB 4,400/t, higher by 1.1% from a month earlier, according to Mysteel’s tracking.
On the same day, Mysteel assessed the mainstream price for medium-temperature coal tar pitch in North China’s Hebei province higher by a hefty 9.8% on month at RMB 4,400/t.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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