200 graphite electrode
Graphite electrode rose by 15% and greeted the bottom reversal by the “carbon neutral” Dongfeng Graphite electrode rose 15% and greeted the bottom reversal by the “carbon neutral” .
On March 15th, domestic graphite electrode prices continued to rise. Among them, ultra-high power graphite electrode rose 15.63% to RMB/ton; ultra-high power graphite electrode rose 4.97% to RMB/ton. This year, the increase has reached 29%. From the perspective of market supply, the supply is relatively short. After the price of raw materials such as needle coke is further increased, the price of graphite electrode still has room to rise, and the factory inventory of graphite electrode has dropped to a low level.
The main downstream application of graphite electrode is electric arc furnace steelmaking, which accounts for about 50% of total consumption. The research report of Huabao Securities predicts that with the growth of electric furnace smelting under the domestic carbon neutral policy, the graphite electrode market is expected to usher in a reversal in 2021. There will still be room for growth of graphite electrode in the first half of the year, and the price will remain stable in the second half of the year.
Data show that in 2015 the world’s electric furnace steelmaking accounted for 25.2% of the total crude steel output, the United States, the 27 EU countries, and Japan were 62.7%, 39.4%, and 22.9% respectively. In 2015, the electric furnace crude steel output accounted for 5.9% of the total output. %, far below the world level. Under the carbon neutral policy, the special steel industry with electric arc furnaces as the main production equipment is expected to develop rapidly, and the future development of electric furnace steel raw material scrap resources is relatively large, which will boost the demand for graphite electrodes.
Driven by demand, the agency predicts that the profit margin of top manufacturers will further increase. In the past two years, the prosperity of the graphite electrode industry has declined, and the performance of leading domestic graphite electrode companies has declined significantly in 2020. The overall industry is in a low-expectation and low-valuation stage. The agency said that with the improvement of industry fundamentals, and the price of graphite electrode gradually returning to reasonable Level, the performance of industry-leading companies will fully benefit as the graphite electrode market bottoms out and rebounds.
At present, in the ultra-high-power graphite electrode market, the top four companies account for more than 80% of the market. The industry concentration is relatively obvious, and manufacturers have strong bargaining power in the downstream steelmaking industry, requiring downstream customers to pay for delivery. Provide billing period. In addition, graphite electrode production capacity accounts for more than 50% of global production capacity, which makes it a net exporter of graphite electrode, and graphite electrode companies’ overseas sales revenue has increased significantly.
Sort out related listed companies:
CGM Carbon: The graphite electrode production capacity ranks third in the world, with a market share of over 20% and overseas exports accounting for over 30%. In the second half of last year, the company’s 100,000-ton ultra-high-power graphite electrode project for Baofang Carbon has been put into production.
Sinosteel International: The main products include graphite electrode, graphite anode, carbon brick and other carbon products. The domestic market share is about 15%, and overseas exports account for more than 20%.
Yicheng Xinneng: Kaifeng Carbon, a wholly-owned subsidiary, has developed high-quality needle coke raw materials for ultra-high-power graphite electrodes, breaking the foreign monopoly; its high-power graphite electrodes are mainly used for electric arc furnace steelmaking, and can also be used in industrial silicon furnaces, Yellow phosphorus furnace, corundum furnace, etc. are used as conductive electrodes.