Japan is one of the key Graphite electrode (GE) producers and exporters in the world following China and European Union. With the rise in demand for GE across the globe amid increased consciousness towards the environmental pollution and promotion of electric arc furnace route for steel production, Japan’s GE exports in first quarter of 2018 ending in March, registered a notable surge of 19% at 27,665 MT against 23,271 MT in the corresponding quarter of previous year 2017.
If we look at Japan’s country-wise GE exports in Q1 CY18, highest exports were made to South Korea that has a percentage share of 22% in Japan’s total GE exports followed by Bahrain at 3,068 tonnes (11%) and U.S. at 3,066 tonnes (11%).
In 2017, Japan exported about 98,670 tonnes of GE in total with highest exports of 25,382 tonnes (26%) to South Korea followed by U.S. at 13,796 tonnes (14%) and then Taiwan at 8,347 tonnes (8%). The country’s GE exports to Bahrain in 2017 stood at 6,082 tonnes (6%) which indicates that Japan’s electrodes exports to Bahrain increased significantly during first three months of 2018.
Japan is the leading Graphite electrode manufacturer in the world with Japanese firms accounting for about 53% of the world’s total GE production capacity. Export supply of the electrodes from China has become a bit restricted as the country’s government has implemented production cuts to curb atmospheric pollution. Subsequently, the global buyers have been forced to look at alternate markets such as Japan and India leading to increased exports of GE from Japan.
However, in 2018 China is all set to make additions to its GE capacities and also there is increased demand of needle coke, a key raw material for GE, in Japan’s lithium-ion industry resulting which it remains to be seen as whether this rise in Japan’s electrodes export will continue in the coming months of 2018.
Japan’s GE prices likely to surge?
Market participants believe that Japan’s GE prices which were trending at JPY 900,000/MT (USD 8,261/MT) in Q1 CY18 are likely to touch JPY 1,000,000/MT (USD 9,180/MT) in the second quarter of 2018 amid the shortage of its key raw material, needle coke and increasing GE demand across the world.
The Japanese GE prices are comparatively lower against its offers from China and thus there is scope for Japanese electrode manufacturers to increase their prices. However, if China comes with additional GE capacities in the coming months, its electrode prices may fall and may give competition to the Japanese graphite electrodes.
Leave a Reply