Japan: Tokai Carbon hikes graphite electrode prices amid surging needle coke costs

• Needle coke rally driven by rising crude oil prices
• Major US, European manufacturers raise prices too

Domestic prices for graphite electrodes for electric furnaces are expected to rise starting in October. Tokai Carbon, a major electrode manufacturer, announced on 15 July, a significant price increase of JPY 150,000/t ($925 for all sizes for deliveries from October onward. The price of needle (needle-shaped) coke, the main raw material for electrodes, rose sharply in July due to factors such as the Middle East situation.

Electrode manufacturers are being forced to respond to the sharp rise in raw material costs. Tokai Carbon judged that, as rising logistics and energy costs are squeezing profits, self-effort alone could not absorb the sharp rise in raw material prices. Decided to make a significant price increase. Other electrode manufacturers are in the same situation and are likely to follow suit.

For ordinary steel electric furnace manufacturers, the electrode consumption intensity for DC furnaces is generally about 2 kilograms per ton of crude steel. The cost impact from a JPY 150,000 price increase is calculated to be several hundred yen per ton. For electric furnace manufacturers struggling with rising electricity prices, additional cost increases are added.

Needle coke surged in both oil and coal sectors, driven by rising crude oil prices following worsening Middle East conditions. Since July, the rate of increase has reached 30~40% for oil stocks and 40% for coal-related stocks.

In electrode manufacturing, not only needle coke is the main raw material, but also the pitch for impregnation to increase electrode density and coke breeze used in firing processes are also showing a steady upward trend.

In the overseas electrode market, this spring, major US company GTI announced a price increase of $600-1,200/t for uncontracted shipments in 2026. In the European market, a leading German manufacturer raised prices in April.

Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.