China: UHP graphite electrode prices continue strengthening

• Prices increase due to tight supply, robust demand
  
  
• Tags to peak in Q2CY'25 on rising demand from mills

  
  
  

Mysteel Global: Chinese prices of ultra-high-power (UHP) graphite electrodes have gained sustained momentum since last month, entering January on an upward trend amid tight supply in the market, Mysteel's recent report showed.

As of 7 January, the country's composite price for 350-mm diameter UHP electrodes in East China's Jiangsu province touched a nine-month high of RMB 14,600/tonne (t) ($1,991/t), higher by RMB 600/t from a month earlier, according to Mysteel's assessment, while that of 600-mm electrodes increased by RMB 400/t m-o-m to hit an eight-month high of RMB 16,600/t, both excluding 13% VAT.

Domestic electrode manufacturers have kept their production low to reduce pollution emissions. Local governments, especially those in North China, have continued to conduct strict inspections of environmental protection facilities, as winter is particularly prone to photochemical smog pollution.

The output controls have boosted electrode suppliers' confidence in firming their quotations to steelmakers, although most electric-arc-furnace (EAF) mills in the country are expected to reduce or stop production this month for the Chinese New Year celebrations.

Meanwhile, the strengthening prices of some raw materials will also provide cost support for graphite electrode tags.

For example, as of 7 January, prices of 1#A sponge coke offered by Daqing Petrochemical, a branch of China National Petroleum Corporation in Northeast China's Daqing region, stood at RMB 3,430/t exw, including 13% VAT, higher by RMB 430/t or 14.3% m-o-m.

Looking ahead, China's graphite electrode prices may rebound overall in the first half of this year, potentially reaching their annual peak in the second quarter, supported by the relatively stronger demand from steelmakers.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.