Latest Updates on Indian Graphite Electrodes Market
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The two key Graphite electrodes (GE) units in India, HEG and Graphite India had stopped their electrodes production on 25 March 2020 following the lockdown orders issued by the government to contain the spread of COVID-19.
However, now almost after a month both the companies have partially resumed their operations. On 16 April, Graphite India Ltd (GIL) announced that it has started partial manufacturing operations at its graphite electrode plant at Satpur in Nashik (capacity of 13,000 tonne) in Maharashtra engaging minimum manpower, after obtaining requisite approvals from the government authorities. Whereas its Durgapur unit with a capacity of 67,000 tonne continues to remain shut at present.
On the other hand, on 23 Apr'20, HEG Ltd also partially resumed the manufacturing operations at its plant in Madhya Pradesh after obtaining the permission from the local district authority amid the countrywide coronavirus lockdown. The company said that it is taking all precautions, adopting social distancing and other safety measures as per the government/local administration guidelines across its operations in the above plant for prevention and containment of COVID-19.
At what rates is GE being traded?
While both the units have resumed their operations, the electrodes are being offered in the domestic market at pre-lockdown rates. UHP grade GE of size 600mm is heard to be around INR 275,000 - 280,000/MT (USD 3,600 - 3,700/MT) whereas 450mm HP grade is around INR 120,000/MT (USD 1,585/MT).
"On the demand side there is no major increase in demand from domestic EAF mills despite relaxation being given to the steel mills in various districts due to labour issues, the electrodes manufacturers may vie export markets to compensate for the opportunity loss during lockdown", quoted an industry participant.
He further added that there is an increased threat of cheaper Chinese electrodes entering Indian market in case lockdown is lifted after 3 May in industrial areas as the domestic GE units will have a gestation period of 15-20 days before their operations fully pick up and final produce in the market for sale.
The Chinese GE, UHP grade 600mm are currently being offered at USD 3,100/MT, UHP 450mm at USD 2,200/MT and HP grade 300-400mm at USD 2,000/MT, CNF India basis.
