Analysis of graphite electrode industry current situation  

Graphite electrode refers to a kind of high-temperature resistant graphite conductive material made of petroleum coke and needle coke as raw materials, coal tar pitch as binder, through raw material calcining, crushing and grinding, batching, kneading, forming, baking, impregnation, graphitization and machining. It is called artificial graphite electrode (graphite electrode for short), which is different from natural graphite electrode prepared with natural graphite as raw material. 

Since 2022, the prices of needle coke and petroleum coke, which are raw materials of graphite electrodes upstream, have risen for many times. As of April 28, the low sulfur petroleum coke price generally increased by 2700-3680 yuan/ton compared with the beginning of the year, with a comprehensive increase of about 57.18%. Since last year, influenced by anode materials market booming, the enterprises have a large demand for graphitization and graphite crucibles. Driven by profits, some graphite electrode enterprises have turned to anode graphitization and graphite crucible, resulting in a shortage of graphitization and baking process processing resources in graphite electrode market and an increase in graphitization costs.

Since last October, due to the epidemic situation and environmental protection policies in autumn and winter, the production of the factory has been restricted. By the end of March, the overall operating rate of the graphite electrode market was about 50%. Some small and medium-sized graphite electrode enterprises have insufficient production capacity under the double pressure of high cost and weak downstream demand. Meanwhile, in the first quarter, China's imported needle coke decreased by about 70% compared with last year, and overall production of graphite electrode market is insufficient.

Graphite electrode material is an important material for EAF steelmaking. Graphite used as electrode material in steelmaking accounts for about 70% ~ 80% of the total consumption of graphite electrode in China. As EAF steelmaking is more environmentally friendly than the blast furnace steelmaking, the policy in recent years is mainly inclined to EAF steelmaking. In 2021, the proportion of EAF steel in  China's crude steel total output will rise to 15%, an increase of 5 percentage points over 2020. The proportion of EAF steel increases, driving the demand for graphite electrodes. Under the background of carbon neutralization, the EAF steel proportion is rising rapidly. Consult us for more predictions on the graphite electrode market.