At present, the graphite electrode market is in a bottoming stage. The positive and negative factors of the market are intertwined, and the market sentiment is still relatively divided. The analysis of market influencing factors is as follows:
1. The price of low-sulfur petroleum coke, the upstream raw material of graphite electrodes, has rebounded. The prices of needle coke and coal tar pitch are operating at high levels. The pressure on the cost of graphite electrodes is still high, and the overall profit of the graphite electrode market is still insufficient.
2. The average operating rate of electric furnace steel plants is still around 69%, there is still a rigid demand for graphite electrodes, and the downstream customer groups of mainstream graphite electrode companies are stable, the company’s shipments are stable, and the mainstream graphite electrode companies are strongly willing to stabilize prices.
3. Affected by the power restriction policy in Inner Mongolia, graphite electrode graphitization resources are tight, and due to the high price of negative electrode graphitization and considerable profits, some graphite electrodes with limited useful electricity will be transformed into negative electrode graphitization, and some graphite electrodes are not a complete set of processes. Enterprise production has been hindered to a certain extent. In addition, graphitization processing costs have also been adjusted recently, and the production costs of graphite electrodes in some companies have increased simultaneously.
4. It is understood that due to the production of some enterprises at full capacity in March-April, some process equipment has been overhauled recently, and the output of finished products of the enterprise may be affected.
5. Graphite electrode companies mostly indicate low inventory levels. Mainstream graphite electrode companies only reserve normal circulating stocks. Some small and medium-sized graphite electrode companies say that they do not keep stocks, and the overall market inventory pressure is relatively low.
6. Graphite electrode exports are still running strong, and some short-term orders in the export market are still being traded at high prices. Some graphite electrode companies also report that exports are good, which to a certain extent supports the stable operation of graphite electrode prices.
1. According to feedback from some graphite electrode companies, individual steel mills have stocks of graphite electrodes for about two to three months, and their enthusiasm for short-term purchases is still low, and purchases tend to lower prices.
2. The continuous high temperature has increased the load of electricity consumption. It is expected that the electricity consumption of electric furnace steel enterprises in southern and southwestern parts of China may be restricted again. In addition, various provinces and cities have gradually introduced crude steel reduction policies, and the production limit of long-process steel plants is still slowly advancing. The demand for graphite electrodes is still expected to fall, especially the demand for ultra-high power small and medium-sized graphite electrodes is limited.
3. There are still uncertain factors in the export of graphite electrodes. The overseas epidemic situation has repeated again, and the freight rate of export ships remains high, which still hinders the export of graphite electrodes in China.
In the short term, orders in the graphite electrode market are still relatively sufficient. Although steel mills often have low prices for purchases, graphite electrode companies consider high production costs and are unwilling to make too much profit under the state of no pressure on corporate inventories. Therefore, it is expected that in the short term , Graphite electrode prices remain stable.