Mining News Pro -According to SteelMint sources, post the one-week National Day Holidays, graphite electrode (GE) prices in China has continued on a rising trend and surged by RMB 10,000/MT (USD 1,444/MT).
As of this week, the prevailing prices for 450mm UHP grade electrodes are assessed at RMB 63,000 – 70,000/MT (USD 9,100 – 10,110/MT), 600mm UHP electrode at RMB 100,000-130,000/MT (USD 14,450 – 18,780/MT) and 700mm UHP electrodes at RMB 120,000-160,000/MT (USD 17,335 – 23,110/MT).
After a wave of rise in country’s GE prices in the month of September, the domestic steel mills increased their inventory in anticipation that the prices will increase post holidays and even after the one-week break mills are continuing to stock GE in the prospect of further price rise, thus leading to surge in its prices.
According to the market sources, currently, there is a shortage of UHP550mm specifications graphite electrodes in the market. This is because a leading manufacturer has been out of stock for about half a month, and the supply speed to steel mills is also significantly lower than the previous period.
In case of raw materials, the needle coke prices maintained its upward trend due to positive GE demand and its inventory at factories remained low. The price of needle coke in country’s domestic market is heard at RMB 26,000-29,000/MT (USD 3,760 – 4,189/MT) whereas imported needle coke is at USD 4,622 – 4,911/MT).
With the start of early winter heating season in China from the month of October, the operating rates of steel mills are expected to fall which should ideally lead to fall in the GE prices. However, industry participants are baffled as on one side there is scarcity in the market due to the poor economic environment and on the other side, steel mills are busy in stocking up of electrodes in anticipation of further price rise.
The graphite electrode and needle coke markets, both have seen widespread changes in the last 18 months. The 9th International Needle Coke Application Market Summit in China, scheduled 30 Oct-1 Nov, features long-term forecasts for supply, demand, and prices along with in-depth analysis of recent and future market conditions. This is your best opportunity to come away with a better understanding of current market dynamics and be better equipped to make more profitable decisions. To register, visit china.steelmint.com
