Iranian Government Favours Graphite Electrode Imports amid Currency Depreciation
Mining News Pro - In a recently held meeting between Ministry of Mine and Trade of Iran and country`s major steelmakers, it was announced that the government will be allocating USD 440 Mn for the import of graphite electrode in Iran.

According to Dr. Jafar Sarqini, Deputy Minister of Mining and Mineral industry, “Iranian government will offer USD 440 Mn to the steelmakers at official exchange rate of IRR 42,000 to import graphite electrode”

Iran is one of the largest importers of graphite electrode in world, the nation has imported around 100,000 MT in last Persian year. This decision of fund allocation was taken by the government to support the domestic steelmakers so that they can import graphite electrode amid drastic devaluation of Iranian currency, Rial. It is to be noted that over past few weeks, IRR has fallen down to a level of 110,000 against 1 USD in country`s black market.

China and India are the major exporters of graphite electrode to Iran. The nation imported 67,227 MT and 11,878 MT respectively from both the nations in last Persian year of 2017-18. Subsequently, this announcement of fund allocation to import graphite electrode is likely to boost its demand in Iran.

Capacity Expansion of Graphite Electrode in China to Meet the Global Demand

China which has ordered closure of nearly 30,000 tonnes of its polluting GE capacity since the latter half of 2016 amid environmental concerns is coming up with new capacities in 2018. As reported by SteelMint, China is likely to add about 80,000 MT of Graphite electrode capacity in the current year in Neimenggu, Shandong, and Shanxi provinces. Out of the total capacity to be added about 60% will be the addition in HP (high power) grade and the remaining 40% will be in UHP (ultra-high power) grade. China’s existing idle GE capacity of 150,000 MT is also likely to resume their operations in 2018 which means that the country is likely to have additional graphite electrode capacity of 230,000 MT.

The domestic prices in China for 450mm UHP graphite electrode are being heard in the range of RMB 63,000-70,000/MT (USD 9,212 – 10,235/MT), 600mm UHP graphite electrode are at RMB 90,000-110,000/MT (USD 13,160 – 16,084/MT) and 700mm UHP graphite electrode are in the range of RMB 130,000-145,000/MT (USD 19,000 – 21,200/MT).

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