Graphite Electrode Market Report(March 15,2022)

This week, the prevailing market price of Chinese graphite electrode remained stable, and small part of sizes increased slightly. RP graphite electrode is the main range whose price increased this week. On the one hand, the price of raw material(low sulfur petroleum coke) continues to be high. According to the feedback from graphite electrode enterprises, the price of low sulfur calcined coke(Jinxi brand) has risen to 8100 RMB / ton, which puts large pressure on the graphite electrode enterprises. On the other hand, since October 2021, the graphite electrode production has been continuously limited and some sizes are in short supply due to the long time and strong intensity of production restriction in the early winter Olympic Games.

The market profit of Chinese graphite electrode keeps low. One reason, the graphite electrode enterprises bear the huge pressure of high cost. Also, in order to increase the market share, some small graphite electrode enterprises still agree their order price lower than the market price, driving down the overall profit level of the market. However, under the upward market price of graphite electrode, the overall market profit of graphite electrode has been higher than before.

This week, the inventory in market was basically at the medium and low level. Affected by the strong production restriction of the Winter Olympic Games, the overall production of the graphite electrode is insufficient and the enterprise inventory is low. According to statistics, the output of 48 domestic graphite electrode enterprises in February 2022 was 69300 tons, a decrease of 7100 tons or 9.29% compared with January 2022, and a decrease of 7200 tons or 9.41% compared with the same period of the previous year, including 7500 tons of RP graphite electrode, 17900 tons of HP graphite electrode and 43900 tons of UHP graphite electrode. In February, the overall output of graphite electrode continued to decline, mainly affected by the environmental protection and production restriction policy of the Winter Olympic Games. Some graphite electrode enterprises in Henan, Hebei, Shandong, Shanxi and Inner Mongolia began to suspend production at the end of January. By now, the production enterprises in Ningxia has worked normally. While some enterprises in Hebei province have not fully started production yet. They are expected to start their production in mid and late March.

Post time: Mar-15-2022