Market overview:
The graphite electrode market as a whole shows a steady upward trend. Driven by the increase in raw material prices and the tight supply of ultra-high-power small and medium-sized graphite electrodes in the market, the price of graphite electrodes maintained a steady growth in January and February, generally at 500-1000 yuan/ton. Beginning in March, enterprises such as the downstream electric furnace steel of graphite electrodes gradually resumed production, and steel plants bidding began one after another. In mid-to-late March, steel plants’ purchasing activities continued to be active, and downstream demand for graphite electrodes was steadily developing. At the same time, the price of raw materials upstream of graphite electrodes Stimulated by sustained high growth, some graphite electrode companies have also seized the opportunity to reverse their profit and loss relationship. The price of graphite electrodes has seen a large increase, generally in the range of 2000-3000 yuan/ton.
1. The price of raw materials is high, and the cost of graphite electrodes is under pressure
The raw material prices of the graphite electrode market have entered an upward channel since September last year, and the prices of graphite electrode raw materials have increased sharply in the first quarter of this year. In particular, low-sulfur petroleum coke and needle coke are affected by mainstream refinery maintenance, under-operation and other factors, and both have an increase of more than 45% compared with the beginning of the year. Affected by the price of low-sulfur petroleum coke, the price of low-sulfur calcined coke is also rising. The price of Jinxi low-sulfur calcined coke has reached 5,300 yuan/ton.
In late March, the price of graphite electrode raw materials has reached a relatively high level, and some downstream companies have indicated that it is difficult to bear the current raw material prices. Graphite electrode companies said that although the price of graphite electrodes has experienced several rounds of increases, it is still not as high as the cost pressure caused by the upward price of upstream raw materials.
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2. The tight supply pattern is not easy to change
The graphite electrode market as a whole still maintains a tight supply pattern of some resources (UHP550mm and below specifications). Orders for some graphite electrode companies have been scheduled to May. The tight supply of graphite electrode market is mainly affected by the following factors
1. The price of graphite electrode raw materials is high, and it is difficult for enterprises to bear it. And some graphite electrode companies said that there are certain risks in production at this time, so companies are unwilling to produce more to increase their own inventory pressure.
2. Graphite electrode companies expect to maintain the current supply and demand pattern in order to maintain the steady growth of graphite electrode market prices.
3. The graphite electrode production cycle is relatively long, and the impact on the graphite electrode market supply situation is limited in the short term.
3. The demand for graphite electrodes is generally improving, and downstream purchases remain on the sidelines
In March, the downstream steel mills of graphite electrodes continued to bid, and the market was gradually active, and the demand for graphite electrodes was improving.
Affected by the slightly larger increase in the price of graphite electrodes, the downstream companies of graphite electrodes have a certain wait-and-see sentiment recently, and their purchases are mainly based on rigid demand. However, due to the tight supply of graphite electrodes, downstream companies have a better attitude towards graphite electrode purchases.
Tangshan’s environmental protection production restriction policy and the recovery of downstream demand are superimposed. The price of rebar has recently rebounded slightly. Under the influence of the environmental protection production restriction policy, scrap prices have recently been operating weakly, and the profit of electric furnace steel has rebounded, which is good for the demand for graphite electrodes.
The background of “carbon neutrality” is good for electric furnace steel companies, and the demand for graphite electrodes is good in the medium and long term.