- Higher input costs, recovery in EAF operations to support prices
- Middle East conflict may weigh on export demand, to limit gains
Mysteel Global: After holding steady in February, Chinese prices of ultra-high-power (UHP) graphite electrodes will probably strengthen this month, supported by recovering demand for electrodes as well as firm cost support, Mysteel’s recent report on the market predicts.
During February, prices of 350-mm diameter UHP electrodes in East China’s Jiangsu province stood unchanged throughout the month at RMB 14,700/tonne (t) ($2,131/t), while those of 600-mm diameter electrodes in the province also stayed flat at RMB 16,200/t, both excluding the 13% VAT, according to Mysteel’s assessment.
On 4 March, Mysteel assessed the prices for these 350-mm and 600-mm electrodes higher at Yuan 15,000/t and Yuan 16,500/t, respectively.
The manufacturers of UHP graphite electrodes have raised their selling prices in response to rising replenishment demand among steelmakers, as Mysteel Global reported.
Chinese electric-arc-furnace (EAF) steelmakers generally slowed or suspended their electrode procurement last month as most mills stopped operations during mid-February’s Chinese New Year holiday. Entering March, these EAF producers have started to bid for electrodes again as they gradually resume operations after the break.
On the other hand, the prices of raw materials for graphite electrodes continue to climb, providing support for the products, Mysteel’s survey showed.
By 4 March, 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 at RMB 4,460/t, higher by 0.7% from a month earlier, according to Mysteel’s tracking.
However, the recent escalation of military conflict in the Middle East is expected to hinder China’s graphite electrode exports to this region, which will likely place downward pressure on Chinese electrode prices, the report warns.
As such, domestic UHP graphite electrode prices will likely increase mildly overall in March, it suggests.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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