China's Steel Major Ansteel Holdings to Start Needle Coke Plant by Mid-2019

China's one of the largest steel manufacturers, Ansteel Holdings is all set to start the needle coke production by mid-2019 and the capacity of the plant is about 40,000 tonnes.
The company started construction of the project from March 2018 and the estimated investment involved in the same is about RMB 500 million. The company is expected to make its first sales in August this year and the expected sales for 2019 is estimated to be around 10,000 tonnes.

The company will focus on the domestic market to sell its needle coke and in the long run, the organization plans to build graphite electrodes plant and used needle coke for its own GE production. At present Ansteel's electrodes requirement is around 20,000 tonnes per year.

Ansteel is a major manufacturer of downstream products. The company has its own coal-tar pitch plant (a key raw material for needle coke) with the annual production capacity of 50,000 tonnes. In China domestic needle coke prices are currently trending at RMB 27,000-28,000/MT (USD 3,990-4,100/MT).

Coal-tar pitch prices move down in China

The prices of coal-tar pitch which is a key raw material for needle coke plunged down last week amid fall in domestic downstream products prices.

The mainstream prices for Chinese coal-tar pitch are RMB 4,000-4,100/MT (USD 590-605/MT) down by RMB 100/MT (USD 15/MT) against the prices in pre-holiday season. However, it is expected that coal-tar pitch prices in China will stabilise amid upward movement in steel products prices once again this week.

India's HEG Ltd looks to secure needle coke supplies amid sales surge

HEG Ltd a key graphite electrodes manufacturer is seeking to procure as much needle coke as possible amid its tight supplies while suppliers of the input material are offering prices on a half-yearly basis instead of the typical annual basis.

The Indian graphite electrode producer has added that UHP electrode demand remains strong, with prices expected to stay stable at an elevated level. HEG's graphite electrodes segment reported a 124% on-year surge in revenue in its third fiscal quarter through December 2018 to INR 1,858 crores (USD 260.3 million), with exports comprising 80% of sales versus 65% a year earlier. Capacity utilisation of the company was 82%. Consolidated profit after tax of the company has surged 154% to INR 867 crores.

Electrodes imports into India has increased in the last quarter of 2018 after the Indian government removed anti-dumping duties on Chinese electrodes last September. Nevertheless, China's finished steel exports decreased -8.1% on-year to 69.34 MnT in 2018 due to a strong domestic market driven by steel capacity elimination and output cuts for environmental reasons.

Global EAF-based steel production excluding China rose 13.4% from 2016 to 2018, to 415 tonnes compared to only a 1.1% increase between 2010 and 2015.

HEG competitor Graphite India said earlier this month that India's electrodes AD duty removal coupled with downward pressure on steel prices has resulted in a correction in electrode prices.