Power outage -- impact on needle coke and graphite electrode enterprises

Recently, under the policy of production and power restriction, the output of some middle and upper industrial products declined significantly, and the price also showed a round of obvious rise, which promoted the continuous upward trend of China's PPI. The high quailty Graphite electrodes used for steelmaking. According to the understanding of needle coke enterprises, most of the production of enterprises are not affected by the current dual control leading to a large-scale production reduction. However, some market participants responded that the current normal production does not mean that there is no possibility of production restriction in the later stage.

Recently, many areas of China are limiting power. As a large power consumer, graphite electrode enterprises are naturally "unable to escape this disaster". According to the statistics, the output of 18 key graphite electrode manufacturers in September is expected to affect more than 6000 tons, down 11.5% year-on-year from August. Among them, Inner Mongolia, Henan, Shanxi, Shandong, Anhui and other regions are more seriously affected, and graphitization is mainly affected in the process, which makes the graphitization "worse". Because at present, even for normal production enterprises, there are great uncertainties about whether to limit power in the later stage.

Recently, raw materials keep rising, while the production limiting operation rate of steel mills has been declining. In September, the average steel price rose by 500 yuan/ton. However, the graphite electrode enterprises were caught in the middle, the downstream demand has decreased, and the electrodes can not be sold. It seems that there is no benefit. However, in the long run, only to further reduce the market inventory, after the end of the period of electricity, steel production to normal, graphite electrode enterprises can have a way out，to get more related news from us.