【Graphite Electrodes】Prices Steady with Minor Adjustments

1.Market Overview

In the week from March 15 to March 21, 2024, the Chinese graphite electrode market prices remained stable. As of March 21, 2024, the market prices for ordinary, high-power, and ultra-high-power graphite electrodes were in the range of 14,500 to 23,000 yuan/ton, maintaining stability compared to the previous week. The average market price for graphite electrodes was 16,195 yuan/ton, showing no change from last week. The market sentiment was generally pessimistic throughout the week, with a long-term downturn situation, leading to modest profits for graphite electrode manufacturers and weakened production enthusiasm. The downstream demand was weak, especially from steel mills, which did not meet expectations, limiting the demand for graphite electrodes. There were few tenders in the market, and the presence of low-priced shipments and substandard products slightly impacted the lower-end market prices, leading to a mix of high and low actual transaction prices and a diversification in product quality. There was fierce competition in the graphite electrode market prices, but some manufacturers were reluctant to reduce shipments due to unfavorable negotiations, focusing primarily on orders from existing customers and limiting new orders, resulting in a market that was stable on the surface but declining subtly.

2. Supply Side

This week, the Chinese graphite electrode market saw stable operations, with mainstream manufacturers maintaining normal production and adjusting their production pace based on sales, without any plans for halted manufacturers to resume production.

3. Demand Side

The demand for graphite electrodes this week was moderate. In the steel sector, due to poor profitability, purchases were made as needed, with some companies conducting small-scale tenders. Long-process steel mills controlled production, leading to a fundamental demand for graphite electrodes; short-process steel mills, facing poor profitability, showed low operational levels, with an increase in stopped or reduced production, leading to lower-than-expected consumption of graphite electrodes. Although there was a slight rebound in finished material prices within the week, steel companies remained cautious, resulting in fewer tenders.

4. Cost Side

This week, graphite electrode manufacturers in China still faced cost pressures. Although there were slight fluctuations in the actual transaction prices of upstream raw materials, the overall price trend remained stable, with high cost pressures continuing.

5. Profit Side

The graphite electrode market in China experienced poor profitability this week.Despite stable prices with minor adjustments, the increase in low-price transactions and frequent price pressures from the downstream market continued the overall loss-making trend.

6. Inventory

This week, the inventory levels in the Chinese graphite electrode market were low. Mainstream manufacturers maintained stable production, with some reducing their production enthusiasm due to prolonged losses, focusing on ensuring stable equipment operation. There were no plans for stopped manufacturers to resume production, with a focus on clearing inventory.

7. Market Forecast

On the supply side, graphite electrode manufacturers are expected to maintain stable production. However, due to the depressed market, some stopped manufacturers may delay their resumption plans, leading to a stable supply in the future. On the demand side, despite the current weak demand, a slight rebound in profits for steel mills towards the end of the week may lead to an upward trend in finished material prices and potentially increased operation levels, raising the demand for graphite electrodes. On the cost side, with no significant positive support from the raw material market, the price trend is expected to remain stable, providing limited support for graphite electrode negotiations. In summary, without significant positive market support and with the presence of low-priced resources, mainstream manufacturers are likely to maintain stable transaction focal points, predicting a stable graphite electrode market trend in the near future. Contact us for more relevant reports.