After the price hike of high diameter Graphite electrode (GE) by RMB 5,000-15,000/MT (USD 786-2,360/MT) in mid-May, the domestic GE market prices have remained stable towards the end of the month. The current prices of UHP grade graphite electrode 450mm is at RMB 70,000-80,000/MT (USD 10,900 – 12,460/MT), 550mm UHP at RMB 1,00,000-125,000/MT (USD 15,700-19,650/MT) and 600mm is at RMB 110,000-140,000/MT (USD 17,290 – 22,000/MT).
For the month of June, steel plants usually start bidding for GE from late May or early June and the arrival of purchase season usually gives good scope to the GE manufacturers to adjust their prices. However, currently steel prices in China are going steady with not much buoyancy expected and thus all parties including GE manufacturers are underplaying by keeping their prices stable.
A local GE trader from China quoted “pessimistic traders are reluctant to replenish stocks as the market turnover is limited amid tight capital supply at the end of the month, keeping GE prices stable.”
Over last two weeks, the sale of high diameter, 550-600mm UHP grade GE have dominated the market resulting in its tight supply whereas the demand for UHP grade graphite electrode with a diameter under 450mm is quite limited thus ensuring its sufficient supply in the market.
In case of raw materials, the price of needle coke required for graphite electrode production remains largely stable, with coal-based and petroleum-based needle coke’s prices ranging from RMB 21,000- 26,000/MT (USD 3,270 – 4,010/MT).
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