Amid the spread of COVID-19 globally, the sales of graphite electrodes in China have declined, exports continue to tighten and domestic trade has been flat.
According to the market sources, domestic steel mills in China have high inventory backlog, and the raw materials for steelmaking are being purchased only on demand. The electrode manufacturers say that the GE prices are nearly reaching the cost of production and thus there are less chances that the prices may fall further in the near future. However, the GE prices can be negotiated further depending upon the quantity of goods shipped.
The export price of electrodes especially that of ultra-high-power graphite electrodes continue to fall. Due to COVID-19, the productivity of foreign steel mills has declined, and the demand for graphite electrodes in overseas markets has weakened. The big GE players in China are cutting prices to seize a part of the domestic market, causing pressure on some small and medium-sized enterprises.
The 450mm HP grade electrodes are heard to be in the range of RMB 13,500-14,000/MT (USD 1,900 – 1,980/MT) whereas 600mm UHP grade are in the range of RMB 24,000 – 25,000/MT (USD 3,400 – 3,500/MT).
In case of raw material, the price of needle coke continues to remain weak amid no improvement in demand. The price has been repeatedly lowered due to the decline in downstream product prices. According to the market sources, due to the current difficulties in exporting graphite electrodes and the poor demand in the domestic market, electrode companies are under pressure to produce, and the price of raw materials continues to fall.
The needle coke prices in China’s domestic market are in the range of RMB 7,400 – 8,000/MT (USD 1,050 – 1,130/MT).
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