- Higher petroleum coke costs support UHP graphite electrode prices
- Weak steel demand caps further price gains
After staying stable throughout July, Chinese prices for ultra-high-power (UHP) graphite electrodes are expected to strengthen overall during August, gaining momentum from firmer cost support, Mysteel’s recent report on the market predicts.
Last month in East China’s Jiangsu province, the price of 350mm diameter graphite electrodes stood largely unchanged at Yuan 15,600/tonne ($2,311/t), while that of 600mm diameter electrodes also stayed flat at Yuan 16,500/t, both including the 13% VAT, according to Mysteel’s assessment.
Entering this month, the prices for the 350mm and 600mm diameter electrodes had climbed to Yuan 16,200/t and Yuan 16,900/t respectively as of August 5, Mysteel assessed.
The recent rise in prices of petroleum coke — a major raw material for graphite electrodes – has served to push up electrode prices, Mysteel Global noted.
For example, the price of 1# sponge coke offered by Daqing Petrochemical, a branch of China’s National Petroleum Corporation in Northeast China’s Daqing region, has steadily risen over the past few weeks and reached Yuan 4,340/t, up 2.4% from the end of July, according to Mysteel’s tracking.
Last month, many domestic coking units halted operations to commence annual maintenance, leading to a decrease in supply of premium low-sulphur petroleum coke that caused prices to strengthen, Mysteel’s other survey showed.
For China’s UHP graphite electrode makers, their higher input costs, plus the reduction in raw materials supply, will likely buoy their prices in August, Mysteel’s survey suggests.
However, the price rally is expected to be limited, as demand for UHP electrodes from Chinese steel mills is likely to remain subdued, with the seasonal lull in the steel market continuing to prompt makers to curb production, according to Mysteel’s report.
Meanwhile, overseas demand for Chinese electrodes may stay lukewarm due to the ongoing disruptions to trade in the Middle East, a key export market for Chinese graphite electrodes, as reported.
In June, China exported a total of 24,217 tonnes of UHP graphite electrodes worldwide, down 2.7% on month and lower by 4.4% compared with the same month last year, according to the latest statistics from the country’s General Administration of Customs.
Note: This article has been published in accordance with a content exchange agreement between Mysteel Global and BigMint.
Leave a Reply