China's Graphite Electrode Market gradually resumes Operations amid control of COVID-19
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With the COVID-19 outbreak being brought under control in China, the steel mills in the country are steadily resuming their production.
The EAF mills utilisation rates have been increased to 26% against just 4% in last few weeks. The country's mills normally operate between 60-70%.
According to the market sources, the graphite electrodes demand in the country that had remained silent almost in last two months have started moving once again and actual downstream demand at present is average. While the demand and prices of high-power and ultra-high-power small specifications have slightly increased, the demand for some large-size electrodes is still light.
"Even before the lockdown happened in China, the market demand for small-size electrodes was reasonable and the prices move up slightly several times. Whereas the demand for large-size electrodes is still down and the inventory is relatively large", quoted a GE trader based in China.
The prices for 450mm HP grade electrodes are heard to be in the range of RMB 13,250 - 14,000/MT (USD 13,250 - 1,980/MT) whereas that of 600mm UHP grade are in the range of RMB 25,000 - 26,000/MT (3,520 - 3,670/MT).
Movement in country's Needle coke market
In case of GE's raw material - needle coke market the inquiry for the same has increased and the manufacturers' mood at present is relatively stable.
According to the reliable sources, the actual purchase of needle coke has improved recently, and downstream anode manufacturers and graphite electrode manufacturers are making more active purchases of needle coke. The current market mentality is good, and needle-shaped coke may have a price increase.
The current prices for oil-based and coal-based needle coke are being heard in the range of RMB 7,500 - 9,400/MT (USD 1,060 - 1,235/MT).
In March, Baoshun Technology's needle coke project has officially begun production. It is understood that the company's planned capacity utilization rate is about 60% this month.
