Mining News Pro - According to SteelMint sources, with the start of September month, the Chinese graphite electrode prices have registered an increase of about RMB 3,000 to 20,000/MT (USD 437 – 2,917/MT) depending upon the size, against the August prices.


According to Mining News Pro -According to SteelMint sources, with the start of September month, the Chinese graphite electrode prices have registered an increase of about RMB 3,000 to 20,000/MT (USD 437 – 2,917/MT) depending upon the size, against the August prices.

The prevailing prices for 450mm UHP graphite electrode are being heard in the range of RMB 48,000 – 53,000/MT (USD 7,000 – 7,730/MT), 600mm UHP graphite electrode are at RMB 80,000-115,000/MT (USD 11,670 – 16,770/MT) and 700mm UHP graphite electrode are in the range of RMB 110,000-135,000/MT (USD 16,000 – 19,690/MT).

In the case of 450mm UHP grade GE, the prices surged by 6.25% whereas for 600 mm the prices rose by 25% on an average basis.

China`s graphite electrode price has been registering a fall since the month of July and especially in early August, the drop quickened. However, after a wave of quick dip in August, China`s graphite electrode prices started to stabilize towards the end of the month.
This wave of price decline in July and August was led by the internal marketing factor where one of the leading electrode plants lowered its price making others to follow its step to reduce prices. However, with prices dropping to cost line along with coordinated efforts by relevant departments, electrode prices started to stabilize in late August.

According to the sources, at present electrode plants don`t have much inventories and demand is good especially after prices started to stabilize as steel plants are vigorously taking deliveries.

Graphite electrode plants in parts of Henan province reported a slight fall in output in the month of August due to environmental regulations. Also, with the start of September month, the heating season in Hebei and other regions has begun which will also have an impact on electrode supply to some extent.

Steel plants largely held wait-and-watch stance when electrode prices were dropping continuously. Inquiries started to increase significantly since late August as steel plants kicked off purchase season for the electrode for September and electrode price began to surge.

In raw materials market, during the month of Aug’18, graphite electrode plants were reluctant to take deliveries of raw materials given the graphite electrode market downturn, which also caused widespread drop in needle coke prices. However, the needle coke prices increased following rise in graphite electrode prices and right now, domestic prices of needle coke are being heard at RMB 25,000-32,000/MT (USD 3,646 – 4,670/MT) whereas prices of imported needle coke is at USD 3,900-4,000 per tonne.

Upcoming GE capacities in China

In case of upcoming graphite electrode capacities, Jiexiu Zhiyao Carbon will soon complete the technological upgrading of graphite electrode production line. Its graphite electrode output for September is expected to reach 5,000 tonne.

Jiexiu Shunda Carbon Co. Ltd is stepping up construction on its 20,000 tonnes per year graphite electrode project. The project intends to produce 300mm-600mm HP and UHP grade graphite electrodes. Currently, the batching unit is being built. The company’s graphite electrode production line is equipped with supporting facilities except for graphitization equipment. Moreover, it plans to add another 4,000 pressing machines in 2019. According to current progress, the project is expected to start commissioning in H1 2019.

Datong Yulinde Graphite Electrode Equipment Co. Ltd`s 22,000 per year 600mm and above UHP graphite electrode project has started construction this April and is expected to start production by late 2018.

Chayouqianqi Xufeng Carbon Technology`s graphitization and machining workshops for the first phase of its graphite electrode project have started operation since mid-July.

Baosteel Chemical, Fangda Carbon and the local government of Honggu district of Lanzhou laid the foundation for the 100,00,000 per year UHP graphite electrode project on August 20, 2018. The joint venture has a registered capital of 1.3 billion yuan, with Baosteel Chemical contributing 663 million yuan in cash withholding of 51% shares. The project is located in Honggu Park, Lanzhou Economic and Technological Development Zone with a total investment of 2.7 billion yuan on research and development. It is scheduled to start construction in 2018 and become operational by 2020.


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