China's large-sized Graphite Electrode Price sinks to a New Low

The turmoil in China's Graphite electrodes sector continues with GE prices especially UHP grade 600mm touching a new low. In past one month, the electrode prices in China's domestic market have recorded a plunge of almost 30% y-o-y basis and is heard to be in the range of RMB 30,000 - 34,000/MT (USD 4,280 - 4,850/MT).

The key reason for the significant plunge in China's 600mm electrodes prices is the excess production of the same with many units putting their new plants into production around the same time thus resulting in high inventory. This is coupled with poor downstream demand during winters. As per the market sources, few manufacturers have GE stocks as high as one to two years.

EAF mills' electrodes buying sentiments have remained low due to their disadvantageous position against blast furnace producers as domestically-sources scrap prices usually strengthens during winter season amid difficulty of recollecting and recycling.

With regards to small sized electrodes, prices are in the range of RMB 12,500 - 15,000/MT (USD 1,790 - 2,140/MT) for 450mm UHP electrodes and RMB 11,000 - 13,000/MT (USD 1,570 - 1,860/MT) for 450mm HP grade electrodes.

Talking about prices in next ten days of December month, Chinese electrode prices are likely to plunge further as the suppliers tend to sell off their inventory at lower prices in order to minimize their inventory before the closing of accounting year 2019.

The needle coke market continue to remain week. The manufacturers are selling at low prices, and prices are sluggish. The procurement in battery segment is comparatively better but in case of the graphite electrodes it is being purchased only on demand. The domestic needle coke prices (both oil and petroleum based) in China are in the range of RMB 11,000 - 15,000/MT (USD 1,570 - 2,140/MT) whereas imported ones (both oil and petroleum based) are in the range of USD 2,000 - 5,500/MT.