The rise in needle coke prices has led GE prices in China to go up by RMB 1,000/t ($153/t) m-o-m basis in November. However, the prices have stabilized in the ongoing month.
The needle coke prices moved up last month by about RMB 500-700/t amid an increase in its raw material (crude oil and coal) prices. The price for oil-based and coal-based needle coke are currently trending at RMB 6,000 – 7,800/t ($928-1,195/t).
The steel prices in China have increased amid rising raw material (iron ore, scrap) prices, and subsequently steel mills’ profits are limited. Under environmental protection constraints during the winter season, steel mills are making raw material purchases based on immediate requirements.
At present, the ex-factory tax-included price of 450mm high-power grade graphite electrodes is around RMB 14,000 – 14,400/t ($2,145 – 2,200/t) and the price of 600mm ultra-high-power grade GE is RMB 19,000 – 20,500/t ($2,900 – 3,140/t).
In India, GE prices for HP grade electrodes has increased this month, whereas, that of UHP grade has moved down. The 450mm HP grade is currently trading at INR 150,000/t ($2,030/t) and 600mm UHP grade is at INR 2,60,000/t ($3,500/t).
China, which was a key exporter of HP grade electrodes to India has stopped exporting to India this year. This is because India-based induction furnaces are opting for domestic electrodes due to the political tensions between the two countries, thus providing support to HP grade electrodes prices in India.
On the other hand, the reputed steel manufacturers in India have recently opted for China’s UHP grade electrodes due to its higher efficiency at lower costs, resulting which Indian players have had to also lower down their UHP grade electrodes prices.
Outlook
The Chinese GE prices are likely to remain firm in Dec ’20 in line with the bullish steel sector outlook and high raw material cost.
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