Graphite electrodes (GE) prices in China continue to remain unchanged, barring minor fluctuations, since past one month.
Market sources reveal that although inquiries for electrodes have increased this month, buyers are unwilling to pay a higher price for the same since there are sufficient supplies in the market.
“Steel prices in China have recently increased, albeit slightly, but the demand for graphite electrodes is average and the buying interest is limited given the ample stock with the steel manufacturers”, quoted a trader based in China.
He further added, “There is an increased inquiry for Chinese electrodes in the export market and overseas orders are increasing gradually. However, any increase in GE prices is possible only in case if domestic demand improves significantly. This is because the export demand for electrodes will take some time to reach the pre-pandemic levels and only domestic demand can support GE prices in the near term.”
The current offers for HP grade electrodes of size 450mm are assessed to be in the range of RMB 12,000-13,500/t, whereas that of 600mm UHP grade is hovering between 18,000 – 24,500/t in the domestic market.
Needle coke
As for raw material, needle coke prices are also stable. Starting June, some needle coke manufacturers significantly reduced production, while another few suspended productions to achieve stability in prices. The coal and oil-based needle coal prices are reported to be in the range of RMB 6500-7500/t.
Outlook
In the short run, GE and Needle coke prices in China will remain weak but stable as demand recovery of both the commodities will take some time.
In the long run, as the export market demand gradually recovers, the electrode demand will rise, excess stocks will be used up, and the graphite electrode along with needle coke prices will pick up.
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