China: Graphite Electrodes Export Surge 46% in Jan-Nov'17

According to Chinese Customs, the country has exported 213,000 MT graphite electrode from Jan-Nov in 2017, up by around 46% Y-o-Y, for the similar time frame of previous year.

In CY16, graphite electrode exports from China stood at 127,620 MT. Major countries that imported graphite electrodes from China are Russia, Iran, Vietnam, USA, India and Turkey.

In the first eleven months (Jan-Nov) of 2017, China exported graphite electrode to Russia, Iran and Vietnam were recorded at 20,900 MT, 15,000 MT, and 14,000 MT respectively, and these three countries accounted for 23.47% of total exports.

According to Graphite Association of China, the total production of Graphite Electrode in China in 2017 will reach 550,000 tonne, registering a whopping growth of 10% year-on-year. In 2018, the output is expected to be around 600,000 tonnes.

During the Jan-Nov, 2017, the combined production in China was at 508,000 tonnes which included normal power products at 114,500 tonnes, high power grade products at 166,500 tonnes and super power grade products at 227,000 tonnes.

Governed by demand and supply forces, graphite electrode prices rose remarkably during the year. Graphite electrodes price has shown a significant increase in recent months ; having surged from around USD 2,000/MT to USD 15,000/MT. To make 1 tonne of steel 2.5 to 3 kg electrodes are consumed.

The Reasons behind this steep surge:

1. Needle Coke which is a prime raw material used in making graphite electrodes witnessed a sharp hike in prices, from USD 300/MT in Feb'17 to USD 1200 at present.

2. Environmental crackdown has affected Graphite producers in China in a big way, leading to closure of around 50% of Graphite capacity.

3. Preference of electric arc furnace-based output at the expense of blast furnace production, led by a drive to reduce pollution.