What's Happening in China's Needle Coke Market?

The Chinese needle coke market has weakened amid the uninterrupted plunge in prices for almost a year. Since the start of 2019, the market price of needle coke in China has been falling as the downstream consumer demand dwindled.

As per the market sources, the needle coke companies in China have once again reduced their prices with an intention to promote shipments. Currently, it is winter procurement phase but the demand from the user industry (graphite electrodes) has not improved significantly. Apart from this, new capacities of needle-coke are gradually coming resulting in increased supplies and further weakening of prices.

"At present, the situation of needle coke is not optimistic. Its market changes are absolutely affected by the downstream graphite electrode market. The graphite electrode market is pessimistic and it is difficult to improve in the short term; said a trader based in China.

As of now, the mainstream price of Chinese oil-based needle coke is RMB 10,000-12,000/MT and the that of coal-based needle coke is RMB 10,000-11,000/MT. While the imported needle coke offers from Phillip 66 are at USD 3,450/MT and that from PMC Korea id USD 1,400/MT.

As per the industry experts, it is likely that the needle coke prices will remain in China would remain under pressure for the short term amid the pessimistic electrodes demand.