Graphite electrode latest developments: Henan, Hebei, Shanxi received production limit notices

Graphite electrode latest developments: Limited by carbon neutralization and environmental protection requirements of the Winter Olympic Games, Henan, Hebei, Shanxi and other parts of the graphite electrode enterprises have received production limit notices

At present, the positive and negative news of the graphite electrode market is intertwined. After the early increase of the graphite electrode market price, the new order transaction in the market is still insufficient, and the market bullish mood is blocked. At present, the graphite electrode market as a whole is dominated by stable price operation.

Price: As of November 22, 2021, the average market price of mainstream graphite electrode in China was 21,821 yuan/ton, which was flat compared with the same period last week, up 2.00% over the same period last month, up 39.82% from the beginning of the year, up 46.87% from the same period last year.

1. Cost side: Graphite electrode production cost surface pressure is still high

On the one hand, although the upstream raw material prices low sulfur petroleum coke, coal tar is loose down, the prices are still in a high operating state, with an increase of about 70% and 80% respectively compared with the beginning of the year. At present, the price of needle coke is strong, with an increase of about 71% compared with the beginning of the year. It can be seen that the price increase of upstream raw materials of graphite electrode still exceeds that of graphite electrode.

On the other hand, some provinces began to raise electricity prices or implement time-of-use electricity price measures, resulting in an increase in the cost of graphite electrode production processes. In the state of relatively tight graphitization resources in the graphite electrode market, the increase in electricity prices may drive the graphitization cost of graphite electrode to continue to increase, and the production cost of some graphite electrode enterprises with incomplete processes will increase.

2. Supply side: 

At present, the supply side of the graphite electrode market is tight as a whole, especially the small and medium-sized ultra-high power graphite electrodes. Some graphite electrode enterprises say that the supply of enterprises is tight and there is a certain pressure on the supply. The main reasons are as follows:

1. At present, although the power limit in all provinces has been relaxed, it is limited by carbon neutralization and environmental protection requirements of the Winter Olympic Games. Graphite electrode enterprises in Henan, Hebei, Shanxi and other regions have received production limit notices, and the operation of graphite electrode market is still limited.

2. The mainstream enterprises of graphite electrode mainly produce ultra-high power and large specification graphite electrode. The production of small and medium specification graphite electrode in the market is relatively small, and the supply of goods is tight.

3. Some graphite electrode enterprises are still delivering early orders, the market spot resources are insufficient, the overall supply of graphite electrode market is tight.

3. Demand side: At present, the demand of graphite electrode market is mainly stable.

Graphite electrode downstream steel plant: on the one hand, the impact of power restriction and production reduction still exists, and the overall operation of steel plants is limited; On the other hand, the terminal steel shipment is general, the price declines, electric furnace steel profit shortage, the graphite electrode purchase intention is general. At present, the average operating rate of electric arc furnace steel mills is about 56%, and the procurement of graphite electrode is mainly based on demand.

4. Export side:

At present, the export market performance of graphite electrode is relatively stable. It is reported that some overseas enterprises have some goods for Chinese graphite electrode under the influence of the final anti-dumping decision of the Eurasian Union. However, on the one hand, although the sea freight price has been adjusted downward, it is still at a relatively high level; On the other hand, the port container resources are tight, and the land carriage exported by China's graphite electrode to Russia is also tight. Under the comprehensive influence, the graphite electrode export cycle is relatively long, superimposed with EU anti-dumping and other factors, the graphite electrode export is still limited.

According to customs statistics, in October 2021, China's graphite electrode export volume was 30,400 tons, a month on month decrease of 3.07% and a year-on-year decrease of 8.45%; From January to October 2021, the total export volume of China's graphite electrode was 342,900 tons, with a year-on-year increase of 28.01%. In October 2021, China's main export countries of graphite electrodes: Russia, Turkey and South Korea, contact us to know more graphite electrode information.