【Needle Coke Market Review】Slow Demand Recovery, Narrow Price Fluctuations (August 2023)

Ⅰ. Key Highlights for the Month

1.1 Shandong Jintai New Materials Co., Ltd. is actively investing in a high-end carbon materials industrial park project, focusing on the new carbon materials industry chain comprising needle coke, graphite, graphene, and composite fibers. The total investment in this project is 2.2 billion RMB, aimed at constructing production facilities for 300,000 tons/year of high-precision needle coke, 80,000 tons/year of high-end graphite carbon materials and negative electrode materials, as well as high-end graphene and graphene special materials, more market dynamics of calcined petroleum coke. Currently, the main equipment for the needle coke project has been completed and is undergoing testing, with production expected to commence by the end of August. 

1.2 Kaifeng Carbon is a high-tech enterprise specializing in the production and sale of ultra-high power graphite electrodes, primarily used in electric arc furnace steelmaking but also applicable in industrial silicon furnaces, yellow phosphorus furnaces, corundum furnaces, and other electrically conductive electrode applications. Kaifeng Carbon has achieved mass production of Φ750mm and Φ650mm electrodes.

Ⅱ. Market Analysis for the Month

Data Source: Oilchem

In August, needle coke market prices experienced a decline. The average price for petroleum-based calcined needle coke was 8,482 RMB/ton, down 4.84% compared to the previous month. The average price for petroleum-based green needle coke was 5,054 RMB/ton, down 5.27% month-on-month. The average price for coal-based calcined needle coke was 8,000 RMB/ton, with a slight decrease of 0.29% compared to the previous month. The average price for coal-based green needle coke was 5,000 RMB/ton, down 8.29% month-on-month.

Ⅲ. Analysis of Market Influencing Factors

The main factors affecting prices this month include:

On the cost side, the prices of coal tar and pitch increased this month, leading to increased production pressure on needle coke and reduced profit margins.

On the supply side, needle coke production saw a slight increase this month, with some manufacturers reducing production loads and conducting maintenance, but inventory pressures remain.

On the demand side, the demand for negative electrodes steadily recovered, but the increase in needle coke consumption was not significant due to cost-cutting measures. Pressure on graphite electrode prices led to reduced enthusiasm for needle coke procurement.

Ⅳ. Market Forecast for the Next Month

It is expected that in September, downstream market demand will slowly recover, and needle coke will continue to face pressure in terms of shipments. Due to cost-related profit factors, needle coke prices are expected to experience narrow fluctuations. Contact us to stay updated on the carbon products market.