【Mysteel】Weak Demand for Ultra-High Power Graphite Electrodes in China

By the end of July, China domestic prices of ultra-high power graphite electrodes have stabilized. The price for φ450 ultra-high power graphite electrodes is quoted at 15,300-15,800 yuan/ton, and φ600 at 18,300-18,800 yuan/ton, with sluggish transactions.

Regarding downstream industries, the average operating rate of 87 independent electric arc furnace steel mills nationwide is 72.26%, which increased by 0.73 percentage point compared to the previous period and increased by 23.16 percentage points year on year. Among them, the operating rates in East China and Southwest China have slightly increased. For 247 steel mills, the blast furnace operating rate is 82.14%, down by 1.46 percentage points from the previous week, but increased by 10.53 percentage points compared to the same period last year. The blast furnace iron-making capacity utilization rate is 89.82%, down by 1.33 percentage points from the previous period, and increased by 10.53 percentage points year on year. The profit margin of steel mills is 64.50%, which increased by 0.43 percentage point compared to the previous period and increased by 45.45 percentage points year on year. The electric arc furnace has a loss of 345.03 yuan/ton, and the blast furnace has a loss of 132.89 yuan/ton, and the losses have eased for both electric arc furnaces and blast furnaces. However, overall demand has not improved, and the demand for ultra-high power graphite electrodes may enter a low point in the months of July and August.

In terms of raw materials, this week, the prices of Jinxi green coke and Sinopec Jinzhou needle coke (for anodes) have remained stable. The mid-to-high sulfur markets have shown active shipments, driving the low sulfur coke market to improve, and some domestic needle coke prices have strengthened, resulting in increased cost pressure for ultra-high power graphite electrodes. Due to stable supply and overall weak demand, there is significant pressure on the shipment of ultra-high power graphite electrodes.

It is expected that the prices of ultra-high power graphite electrodes in China will remain weak and stable in the short term. For detailed analysis of the graphite electrode market in August, inquire with us.