How does Chinese Graphite Electrodes Market Perform in November?
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In the beginning of November month after the end of procurement season by most steel mills, China's graphite electrodes (GE) market entered a quiet period and the inquiry from downstream manufacturers and traders reduced.
Towards the end of the month, the majority of graphite electrodes manufacturers did not have much inventory and sales pressure also lowered down.
As of this week, the prevailing prices for 450-500mm UHP grade electrodes are assessed at RMB 76,000 - 83,000/MT (USD 11,000 - 11,945/MT), 600mm UHP electrode at RMB 105,000-130,000/MT (USD 15,000- 18,700/MT) and 700mm UHP electrodes at RMB 120,000-150,000/MT (USD 17,270 - 21,560/MT).
In past two months, the GE output of Shanxi Hongte, Dandong Xinxing, Jiexiu Zhiyi and other factories increased, however the shortage of GE of some specifications was alleviated.
The overall environmental protection measures for the heating season this year are better (less stringent) than last year. The carbon plant in Hebei is expected to limit production by 20-50%. According to the atmospheric assessment, the Henan region will continuously adjust the production limit, ranging from 20-50%. Towards the end of the heating season, there are intermittent restrictions on production in Shandong.
In case of raw material, the needle coke prices maintained an upward trend with 3-8% rise in prices in last two months. In order to have stable supply during the maintenance period in the first half of next year, Jinzhou Petrochemical has controlled the exports of needle coke, and its domestic price has been raised again by 3% to RMB 34,000 per tonne (USD 4,880/MT).
Upcoming capacities in GE sector
On 13 November, China's Pingmei Shenma Group Kaifeng Carbon Co., Ltd. and Sichuan Huashengda New Material Technology Co., Ltd. officially signed an investment agreement for the construction of 25,000 tons of ultra-high-power graphite electrode production line in Tianquan County, Ya'an City.
According to reports, the two sides plan to invest a total of 300 million yuan, using Tianquan's abundant hydropower resources to build a graphitization and finishing line. After the project is completed and put into production, it will realize an annual sales income of more than 2 billion yuan, and the tax revenue will reach nearly 100 million yuan, achieving both economic and social benefits. The project is expected to start construction after the Spring Festival in 2019, and strive to achieve trial production in June.
Hunan Mingda Carbon Co., Ltd. has 40,000 tonnes of ultra-high power grade graphite electrode and 20,000 tonnes of special carbon project. The first phase of 40,000 tonnes of the project is currently in operation. In December, ultra-high graphite electrode will be put into production. It is expected that the product will be produced and launched in the market from April to May next year.
