Cost Support Continues To Increase, Graphite Electrode Prices Are Expected To Rise

Recently, with the rise of raw material prices, graphite electrode manufacturers are considering the cost and profit situation, especially at present, the overall profit of the graphite electrode industry is still in a state of loss, and graphite electrode manufacturers have collectively started the price promotion mode.

As of August 17, the mainstream price of UHP450mm in the market is 16,500 RMB/TON, the mainstream price of UHP600mm is 19,500 yuan/ton, and the price of UHP700mm is 23,500 RMB/TON.

 

 

                                                                            Part1. From the perspective of supply

 

Since May, graphite electrode companies have been forced to limit production due to the unbearable pressure of losses. The output of graphite electrode companies has continued to shrink. The current operating rate of the graphite electrode industry is about 50%.

 

 

                                                                            Part2. From the perspective of demand 

 

Although the current graphite electrode industry is still in the traditional off-season cycle of demand, with the arrival of the peak demand season of "Golden September and Silver October", the superimposed stimulation of domestic demand and the implementation of output control policies have been implemented one after another. Stimulated by rising prices, it is expected that there will be a period of downstream in September. Just need to restock.

 

                                                       

 

After entering the fourth quarter, under the background of the restoration of macro expectations and the strengthening of policy support, the market's expectations for steel demand have been restored. Recently, the demand for electric furnace steel mills is still in a weak state, mainly due to seasonal high temperatures and rain suppression. Beginning in September, the impact of seasonal high temperature and rain will gradually weaken, the operating rate of electric furnaces is expected to gradually usher in recovery, the trading atmosphere in the graphite electrode market is expected to improve, and the price of graphite electrodes is expected to rise.