Graphite Electrode Market Report(March 23,2022)

This week, Chinese graphite electrode price remained stable as whole. Due to the fact that steel market has not recovered significantly with weak trading, also the impact of the covid-19, the steel mills purchased graphite electrodes based on rigid demand and did not intend to have extra stock . So the price of graphite electrodes rose at a slow pace.

This week, the market inventory of graphite electrode was still at the medium and low level. Currently, the epidemic situation( covid-19) is repeated in some places, especially in Changchun city(9706 confirmed cases) and Jilin city(8534 confirmed cases). Generally, the epidemic has little impact on the production of graphite electrode. Some enterprises say that they implement closed management to ensure their normal production. However, the market transportation is affected and limited by the local strict protection policy, and some enterprises has to only consume their inventory(raw materialfor production, no new raw material. Moreover, some graphite electrode enterprises subject to environmental protection control in the early stage have just resumed production these days. So the market inventory of graphite electrode keeps at low level. Due to the limited transportation and low market inventory, in short term, the supply continues to be insufficient.

This week, the steel mills’ purchase of graphite electrodes was mainly based on rigid demand. By now, the start-up of steel mills has picked up. As of March 11, the average operating rate of independent EAF steel mills was 71.33%. However, on the one hand, some EAF steel mills still have some graphite electrode inventory. On the other hand, the price of terminal steel product fluctuates. Therefore, the steel mills did not have strong willingness to purchase large quantity of graphite electrode.

According to customs statistics, China’s graphite electrode export volume in December 2021 was 34700 tons, a month on month decrease of 28.64%, a year-on-year decrease of 0.72%; From January to December 2021, the total export volume of Chinese graphite electrode was 426200 tons, with a year-on-year increase of 27.33%. In December 2021, China’s main export countries of graphite electrodes: Turkey, Russia and South Korea.

Post time: Mar-23-2022