Graphite electrode price trend

The decline in the last two or three months has made the profit of graphite electrode upside down. Many manufacturers of graphite electrodes have been producing at a loss. According to the communication with industry experts, most of the manufacturers that can still produce normally are concentrated in the head enterprises. The smaller manufacturers have reduced production or made other series of graphite products that can make money. The operating rate of graphite electrode dropped from 35% in August to about 25% today, which is the most true picture. 

1. Downstream steel industry

However, with the gradual promotion of the national double carbon strategy, the steel industry, as an important carbon reduction field, can be expected to have more and more environmental regulations and stricter environmental requirements, which forces some steel manufacturers to switch from blast furnace steelmaking to electric arc furnace steel manufacturing.

2. Upstream high energy consumption exit

Taking Inner Mongolia as an example, a document has been issued recently (Notice on Accelerating the Elimination of Backward and Eliminating Excess Production Capacities to Implement the Task of Double Control on Energy Consumption) to ensure the orderly withdrawal of graphite electrode and other production capacities by 2023.

Supply shrinkage of graphite electrode.

3. Look at problems from the perspective of development

Finally, back to the question of anti-dumping duties we mentioned at the beginning. As a big export country of the graphite electrode, our country has seen constant anti-dumping investigations on the export of the graphite electrode overseas in recent years, mainly due to the low price and gradually rising quality of domestic graphite electrodes, and the increasing export volume year by year. For graphite electrode future price trend, welcome to contact us.