Sharp rise in Graphite Electrode prices has taken a toll on the users in South Korea, with global supplies severely curtailed.
According to the Korea Iron Steel Institute, the import price of the electrodes have been moving up substantially in the recent months, as the import prices having jumped to USD 12,639/MT in Sep’17.
In Aug’17, the prices were at USD 8,870/MT; and the prices in July’17 were at USD 3,306/MT, according to the institute.
In comparison with other international import markets, the prices in China were substantially higher than the contractual prices in Japan, at USD 2,613/MT; and at USD 2,447/MT in India. Spot prices are around 10-times higher.
During the third quarter of 2017, imports of the electrode in South Korea were at 3,858 MT, a meager upward drift of 0.7% over the imports in the Jul-Sep’16 period. Out of the total import volume, 726 MT was from China.
The robust upswing in the electrode prices in China is due to the production cut implemented by the Chinese government to curb atmospheric pollution.
In the capacity cutting drive, around 0.3 MnT of the electrode production capacity has been eliminated in China since the second half of 2016.
That means that graphite prices have been soaring. This year alone, shortages in China have driven prices to USD 16,330 per tonne. That’s a nine-fold increase.
On a global level, spot prices for graphite electrodes have jumped even more —hitting up to USD 35,000 per tonne as Chinese exports dried up.
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