According to SteelMint sources, the Graphite electrode (GE) prices in China have remained unchanged week on week basis amid stable demand.
The prevailing prices for 450mm UHP graphite electrode are being heard in the range of RMB 70,000-75,000/MT (USD 10,468 – 11,275/MT), 600mm UHP graphite electrode are at RMB 105,000-125,000/MT (USD 15,785 – 18,790/MT) and that of 700mm UHP graphite electrode are RMB 140,000-160,000/MT (20,940 – 23,930/MT).
Majority of steel plants with EAFs (electric arc furnaces) in China have already made GE purchases for the July month and hence no new query is being heard for the same at present, quoted one of our sources. At present electric steel plants in China are maintaining stable production resulting in which graphite electrode manufactures’ inventory is at a lower level and there is no stocks backlog.
Steel production cut in China to vary mill to mill basis from next winters
China’s fight to curb air pollution caused due to polluting steel mills seems not to be ending anytime soon.
As per the reports, China will shift from its ‘one size fits all’ approach to fight pollution and from the upcoming winter season, production cuts in Chinese steel sector will vary mill to mill basis.
This comes after the nation’s state council earlier this month said that instead of 28 cities, a total of 82 cities will be required to take special anti-smog measures over this autumn and winter season.
What made China change its ‘one size fits all’ policy?
During last winters, industrial plants in n the steel, cement and primary aluminum sectors in 28 northern cities were ordered to cut as much as 50% of their production capacity as part of the government’s years-long ‘war on pollution’.
However, in an effort to meet its politically crucial air quality targets, local officials in some Chinese cities imposed blanket suspensions (meaning complete ban or closure) on traffic, coal use and industrial activity throughout the smog-prone north causing much discomfort to the public.
For instance, efforts by local officials to convert coal-fired boilers to cleaner-burning but scarce natural gas left thousands of households without heat during the freezing winter season.
Also, one of the major drawbacks of ‘one size fits all’ policy is that although some factories have implemented much better emissions standards but they are treated the same as those that have done nothing.
The benefits of new ‘mill to mill’ policy
This new measure of mill based production cuts will ban the use of blanket production suspensions on industrial enterprises that are already complying with environmental requirements. Firms that have not met those requirements will also be subject to more targeted rectification measures and punishments.
This measure also ensures to give local regulators enough time to investigate and resolve environmental problems rather than imposing orders from above.
As per the Chinese environment ministry officials, environmental measures in China are likely to be more stringent until at least 2020
Leave a Reply