China's Graphite Electrodes Export Surges Significantly during Jan-Nov'18

According to China's Carbon Industry Association, the country's exports of Graphite electrodes (GE) have registered an increase of 41% y-o-y basis during Jan-Nov'18. The same has been recorded at 120,473 tonnes.

The export volume of ordinary power graphite electrodes have been recorded at 10,092 tonnes during the period, up by 26% y-o-y basis and the total output of the same in Jan-Nov'18 was 33,282 tonne, up 22% year-on-year. The export volume of UHP (Ultra-high power) grade GE in Jan-Nov'18 have increased by 22% y-o-y basis and is recorded at 76,290 tonnes.

The key countries in case of GE exports for China are Iran, Russia, U.S., and Italy. Although sanctions have been announced on Iran by U.S. in August last year China has made sufficient exports to the country in the first six months of 2018.

The GE prices in China have remained stable last week and the prevailing offers for the same are heard at UHP grade GE of size 450mm 40,000-42,000/MT (USD 5,915-6,210/MT) and that of 600mm is RMB 75,000-90,000/MT (USD 11,090 -13,300/MT).

The GE prices in China had been falling especially from mid-Nov'18 with the start of winter heating season that restricts the steel production in an attempt to control pollution. According to the market sources, in the short run, the Chinese electrodes prices are likely to maintain stable.

The supply of needle coke in China continues to remain tight and thus its domestic prices have maintained a stable trend. On the other hand, Phillips 66 which is one of the leading needle coke suppliers in the world has increased its prices for China by 24% y-o-y basis for the first half of 2019. The current offers of NC to China by the company are being heard at USD 4,200 - 4,600/MT.