How much Graphite Electrodes does China so far Exported in 2019?
...
It seems that the rising production and poor downstream steel demand are compelling the Chinese graphite electrodes producers to sell their excess produce in the overseas market.
According to country's customs data, China's GE exports in the month of July have been recorded at 51,694 tonnes, up by 84% against July 2018 and by 26% against its previous month of Jun'19. During Jan-Jul'19, the country has exported about 2.25 MnT, registering a surge of 32% against the corresponding period of previous year.
While till last year Iran and U.S. used to be key export destinations for Chinese electrodes manufacturers, this year the dynamics have changed. With sanctions on Iran in place and U.S. increased tariffs on GE imports from China (from 10% to 25%), the country seems to be diverting its excess produce to other countries.
Malaysia remains the top destination for China's electrodes exports followed by Korea, Turkey and Turkmenistan. Exports to India have also registered a surge of more than 80% y-o-y basis during the year so far out of which non-UHP grade exports makes the major contribution in India's total GE imports from China. However, as per the market sources, in case of Iran, the Chinese exporters are directing their exports to various middle-east countries and after altering the bill of lading where the origin of shipment is changed at the port, the same is directed to Iran thus making evasion of U.S. sanctions possible.
China's GE prices remains feeble
The country's domestic electrodes prices continues to remain weak, the market has high inventories, the demand from downstream segment is tepid, and the manufacturers are fiercely bidding with each other. The situation is slightly different in case of UHP grade electrodes where the prices are stable.
The current prices for 450mm UHP grade electrodes are in the range of RMB 14,000 - 16,000/MT (USD 2,000 - 2,250/MT) whereas that 600mm are in the range of RMB 42,000 - 55,000/MT (USD 5,900- 7,750/MT). The price for HP grade 450mm electrodes are in the range of RMB 13,000 - 15,000/MT (USD 1,800 - 2,110/MT).
