How much Graphite Electrodes did China Export in 2018?

The promotion of EAFs for steel production and closure of polluting graphite electrodes plants in China in the latter half of 2017 as a part of supply-side structural changes led to a significant surge in country’s GE demand and so does its prices.

This increase in demand and prices motivated China’s electrode manufacturers to raise their GE production, increase their existing plant capacity or set up new plants leading to a steady surge in electrode supplies in China’s domestic market.

However, although the EAF steel capacities in China grew last year, the increase in GE supplies was higher resulting which manufacturers diverted their GE output in the export market.

According to customs data, China exported 287,400 tonnes of graphite electrode in 2018, up 29% YoY. The major buyers of Chinese electrodes were the U.S. (23,600 tonnes, up 51% YoY), Italy (18,200 tonnes, up 47% YoY), South Korea (16,500 tonnes, up 65% YoY) and Russia (16,000 tonnes, down 31% YoY).

Several Korean steelmakers signed long-term contracts with China graphite electrode plants. Buying sentiment that waned among Russian buyers last year, partly due to sanctions led by the U.S. government turned better this year.

China’s key GE Exporters

The two major GE exporters in China were Fangda Carbon New Materials and Jilin Carbon Imp & Exp, accounting 14% and 7% respectively in the total exports.

Fangda Carbon saw continuous growth in exporting volume since 2016. In 2017, 38,600 tonnes were exported, up 12.62%. In 2018, 40,500 tonnes went to the global market, up 4.96%, according to China’s Customs data. Total sales in 2017 were estimated at 271 million yuan, up 305.16% YoY. Last year, the plant saw increase by 130.82% in sales to 626 million yuan.

Sales volume in Jilin Carbon increased from 2016 to 2018. In 2017, Jilin Carbon exported 16,600 tonnes, up 3.92% over last year. In 2018, the plant exported 21,000 tonnes, up 26.16% YoY. Sales in 2017 and 2018 were 96 million yuan (up 246.48%) and 252 million yuan (up 163.01%) respectively.

Export surges in Jan’19 also

While the rally in GE prices continued almost for a year, the same started plunging towards the end of 2018 when the winter production cuts started.

In Jan’19, China exported 27,500 tonnes of graphite electrodes up 31% YoY or 7.85% MoM. The domestic market extended a weak scenario since last December, while the export market was relatively stable. China owns more than half of global graphite electrode capacity and is also competitive in pricing. Exporting volume from China will keep increasing in 2019.

China’s graphite electrodes output in 2018

According to provisional data of CCIA (China Carbon Industry Association) from Jan-Dec’18, the country’s graphite electrode output was 649,668 tonnes, an increase of 18% y-o-y, out of which 268,991 tonne was ultra-high power graphite electrodes, an increase of 48% against 2017.

Major UHP Grade GE Producers in China in 2018

Quantity in Tonnes