CHINA GRAPHITE ELECTRODE MARKET ANALYSIS AND FORECAST Ⅱ

From shipment aspect: the recent shipment of graphite electrode market is general. According to some graphite electrode enterprises, the shipment of enterprises has slowed down since late July. On the one hand, due to the policy guidelines for reducing crude steel output and environmental protection power limitation measures in the second half of 2021, the limitation of converter steelmaking is more obvious, and the procurement of UHP graphite electrodes, especially ultra-high power small specifications by steel factories slows down; On the other hand, some graphite electrode downstream steel factories have about two months' inventory of graphite electrode, and steel factories temporarily focus on consumption inventory. The graphite electrode market has obvious wait-and-see mood, less market transactions and export situation is general.

EAF steel is affected by factors such as the off-season steel market, the narrowing of waste screw difference and the limited profit of EAF steel, etc., the production enthusiasm of EAF steel factory is also relatively general, and the steel factory mainly purchase according to steel needs.

Graphite electrode outlet analysis:

According to customs statistics, in July 2021, China's export of graphite electrode was 32,900 tons, a month on month decrease of 8.76% and a year-on-year increase of 62.76%; From January to July 2021, China's total export of graphite electrode was 247600 tons, up 36.68% year on year. In July 2021, China's main graphite electrode export countries: Russia, Italy and Turkey.

According to graphite electrode enterprises feedback, the export of graphite electrode has been blocked due to the recent epidemic. Recently, the freight of export ships has increased by multiple, and it is difficult to find export ships, port containers are in short supply, and graphite electrode exports to the port and pick up the goods after arriving at the destination country are hindered. Some graphite electrode enterprises consider the export cost and turn to surrounding countries for sales or domestic sales. Some graphite electrode enterprises exported by Railway said that they were less affected and their exports were normal.

Market outlook forecast: in the short term, the supply of graphite electrode market is greater than the demand, and restricted by power restriction, production reduction and other factors, the demand for graphite electrode is difficult to recover significantly in the short term. However, under the pressure of high cost and profit contraction, some graphite electrode enterprises are still willing to stabilize the price. In general, it is expected that the graphite electrode will maintain a stable, medium and weak operation. As the downstream steel factories and graphite electrode enterprises ran out of stock, and the supply end of the graphite electrode market is expected to decrease, the graphite electrode price will rebound rapidly, contact us for more technical guidance.