Recent Trends and Market Analysis of Graphite Electrodes in China

Recently, the graphite electrode market in China has experienced a period of weakness, with certain varieties witnessing a week-on-week price decline of approximately 800 yuan/ton. This analysis examines the price range and overall trading conditions for ultra-high power graphite electrodes, as well as the impact of downstream demand and raw material factors.

Analyzing the downstream demand, we find that the average operating rate of 97 independent electric arc furnace steel mills across the country stands at 66.15%. This represents a notable increase of 5.4 percentage points compared to the previous week and a significant year-on-year growth of 5.38 percentage points. Regional variations are observed, with Central China experiencing a substantial rise in operating rates, and Southwest, South, and North China witnessing marginal increases. The operating rate in East China shows a slight improvement as well. Further insights from Mysteel's survey of 247 steel mills reveal that the blast furnace operating rate remains stable at 82.36%, with a slight year-on-year decline of 1.32 percentage points. Additionally, the utilization rate of blast furnace ironmaking capacity records a marginal decrease of 0.26 percentage points, and the profit margin of steel mills witnesses a decrease of 1.30 percentage points compared to the previous period, with a significant year-on-year decline of 18.62 percentage points. Notably, the electric furnace sector incurs a loss of 270.63 yuan/ton, while the blast furnace sector faces a loss of 12.7 yuan/ton. The arrival of the off-season intensifies the challenges for steel mills, resulting in increased losses and highlighting the supply-demand imbalance.

Examining the raw materials segment, the price of Jinxi raw coke remains stable, while Daqing raw coke observes an increase of 300 yuan/ton. The price of PetroChina Jinzhou needle coke exhibits stability. The demand for petroleum coke displays mixed trends of growth and decline. However, the persistent loss in ultra-high power graphite electrodes market is aggravated, anticipating a continued weak trend in the domestic market.

By understanding the recent trends and analyzing the key factors influencing the graphite electrode market in China, stakeholders can make informed decisions. Please note that market fluctuations should be carefully monitored, and adjustments should be made based on the prevailing conditions.