What do Fangda Carbon's 2018 Annual Results Reveal?

The supply-side reforms in China which led to the closure of polluting graphite electrode units in the country and promotion of EAFs proved to a boon for the Chinese GE manufacturers in the last two years. The prices for the electrodes in the country increased significantly which further resulted in huge profits profit for the producers.

China's largest graphite electrodes producer, Fangda Carbon has released its annual report for 2018 and the numbers are once again phenomenal. During the year, the company's total operating income reached RMB 11.65 billion (USD 1.73 billion) registering a year-on-year increase of 40%. The net profit attributable to the parent company was RMB 5.59 billion (USD 83 million), a y-o-y increase of 54%.

The company produced a total of 180,000 tonnes of carbon products that included 159,000 tonnes of graphite electrodes, 18,000 tonnes of carbon bricks and 627,000 tonnes of iron ore concentrates.

In 2018, with the gradual deepening of the national supply-side structural reforms, the company continued to strengthen its management, optimize the product structure, vigorously expand the market with production and management being in efficient synergy resulting which the company's total operating income and net profit achieve steady growth.

Fangda Carbon's which is headquartered in Lanzhou city of Gansu province has current electrodes capacity of 165,000 tonnes. It is coming up with 50,000 tonnes of UHP grade plant in Sichuan province which will be operational by 2020. It has also entered into a joint venture with Shanghai Baosteel Chemical Co to build 100,000 tonnes of graphite electrode project in Northwest China's Gansu province.