Prices rise, demand recovers, graphite electrode show an upward trend.

As downstream steel plants gradually recover demand for graphite electrode, China domestic graphite electrode prices have risen recently. Since the beginning of March, domestic steel plants have gradually increased their bidding. According to the actual transaction situation, in East China some steel plants' transaction price has increased by about 200 yuan/ton compared with the previous period. 

As of March 6, the UHP400mm specification mainstream price was 21200-22200 yuan/ton, the UHP450mm specification with 30% needle coke mainstream price was 20700-21200 yuan/ton, the UHP600mm specification mainstream price was 24200-25200 yuan/ton, and the UHP700mm specification mainstream price was 29200-30200 yuan/ton.

On the one hand, graphite electrode price rise this round can be attributed to the high cost of graphite electrode market; The continuous rise in the price of petroleum coke has provided strong support for graphite electrode price. Since February, it has generally been expected by graphite electrode manufacturers that prices will rise, in order to release their own cost pressure. On the other hand, due to the rapid resumption of construction projects after the Spring Festival, the rate of resumption of work has reached more than 90% as of last week. Steel market demand has rebounded significantly. Some power plants in eastern and southern China have turned losses into profits. EAF steel enterprise overall operating rate continues to rise, procurement enthusiasm has also been improved. Some steel plants have gradually accepted graphite electrode prices. The overall operating rate of EAF steel enterprises has continued to rise, and the purchasing enthusiasm has also improved. The price rise of graphite electrodes has gradually been accepted by some steel plants. Due to these two factors, graphite electrode prices have increased.

From the perspective of the future market, with the introduction and implementation of various favorable policies and the signs of the real estate market recovery, the traditional steel consumption season in March will gradually enter, and the downstream market demand will accelerate the recovery, which will promote the demand for graphite electrode and promote the price rise. Therefore, considering the high cost, demand potential and other favorable factors support, the overall situation in the second quarter is still optimistic, graphite electrode prices are expected to keep rising. Learn more about the graphite electrode market, feel free to consult us.