China: Graphite Electrode Prices Fall In Line With Low Steel Production Since Spring Festival

In China, the domestic Graphite Electrode prices have fallen of late, and market participants attribute the decline in the prices to the demand getting lower mainly due to the steel makers in that country having surplus inventories of the electrodes, which were stocked ahead of the Lunar Year holidays.

According to IC Carbon, China as there was no steel production activity during the holidays, and the plants have started running now, following the holidays, the steel makers are not in a rush for purchasing the electrodes, creating a demand-supply imbalance for the electrodes.

According to the market inputs received, prices of UHP 450 mm electrodes have come down to around Yuan 95,000/MT; UHP 550 mm electrodes moved down to Yuan 120,000-125,000/MT; UHP 600mm electrodes sank to Yuan 130,000-135,000/MT; while, prices of the HP 400 mm electrode declined to Yuan 85,000-90,000/MT.

Compared to the last week, these price declines amounted to Yuan 5,000-15,000/MT, corresponding to the different grades.

On the consumption scenario in the near future, the ordering period for the electrodes by the steel producers will start within this week and will extend up to the end of Mar'18. Although, some enquiries were already reported, most of the steel makers are waiting and watching the electrode price fall before starting purchases.

Given, the moderate electrode purchases, to start shortly, and the availability of unsold inventories with the electrode manufacturers, the electrode prices are not likely to undergo significant upward movements within this month, but likely to remain stable.

However, on the contrary, the recent Needle Coke prices have undergone upward drifts. Needle Coke prices of Jinzhou Petrochemical have gone up by Yuan 1,000/MT to 25,000/MT. In view of this, whether the electrode prices will remain steady during the month is also questionable - after the rise in Needle Coke price.