china carbon graphite billet
The price of china carbon graphite billet is “just about to move” this time the price increase is different from last time
The increase in raw material prices is the main driver of the recent price increase of china carbon graphite billet products. A China carbon graphite billet manufacturer in A-shares told reporters that in the context of the country’s “carbon neutral” target and stricter environmental protection policies, the company expects that the prices of raw materials such as petcoke and needle coke will continue to rise, so it does not rule out China. The subsequent price increase of carbon graphite billet products is possible.
In fact, the price increase of china carbon graphite billet has attracted market attention. Yesterday, affected by the news about the price increase of China carbon graphite billet products, the A-share China carbon graphite billet sector ushered in a rise. In terms of individual stocks, Fangda Carbon rose 7%, Yicheng New Energy rose more than 5%, and Baotailong and Yongdong shares rose.
This morning, Fangda Tansu continued to attack.
Regarding the follow-up trend of china carbon graphite billet, a brokerage research report bluntly stated that the “carbon neutral” policy is expected to increase the proportion of electric furnace steelmaking, which will benefit the overall development of the china carbon graphite billet industry. Large-size ultra-high power china carbon graphite billet is one of the main materials for ultra-high power electric arc furnaces, and its demand is expected to increase further driven by the demand for electric arc furnaces.
This round of price increases is mainly driven by costs
The reporter learned in the interview that the recent China carbon graphite billet market has been operating well, and the price is in an upward cycle, mainly due to the continuous upward impact of raw material prices.
“Currently, the price of ultra-high power electrodes ranges from RMB/ton to RMB/ton, and the price per ton has increased by approximately RMB 1,000 from the beginning of this year. The price of various types of ordinary power china carbon graphite billet products has increased by approximately RMB 500 per ton from the beginning of the year. Fangda Carbon told reporters that the recent increase in the price of China carbon graphite billet is mainly due to the increase in raw material prices. Taking petroleum coke as an example, the price per ton has increased by about 400 yuan compared with the beginning of the year.
The person further stated that in terms of raw material supply and environmental protection policies, the company expects that raw material prices will continue to rise, so the price of china carbon graphite billet products is not ruled out as “continuously bullish”.
Some steel industry research institutions also hold the same view. “Currently, the price of petroleum coke in the raw material market is still rising. The peak period for refinery maintenance is approaching, and the market supply is gradually decreasing, which is good for the price of low-sulfur coke.” The agency also believes that needle coke is affected by low start-ups and insufficient raw material support. As a result, prices may remain high. In the short term, the market for china carbon graphite billet is still showing a positive trend, with strong cost support. Downstream is likely to enter the market one after another due to fear of rising in the later period.
The reporter noticed that the price of china carbon graphite billet products once soared in 2017, and the industry was once booming. Regarding whether it can recreate the glory of the year, a person engaged in carbon material sales in North China also gave his own opinion.
“The logic of recent product price increases is different from that of 2017. Product price increases in 2017 were mainly affected by supply-side reforms. Small businesses in North China were shut down, and the output of china carbon graphite billet was cut by half, resulting in a reduction in supply and electric furnaces. The demand for steelmaking is growing, and the shortage of products at that time is the key.” The above-mentioned person said.
Although the price increase logic is different from 2017, the person believes that the carbon emission reduction effect of electric furnace short steelmaking process and long steelmaking process steelmaking is obvious. With the gradual implementation of the “carbon neutral” goal, china carbon graphite billet products, Especially the prospects for ultra-high power products are broad.
“Carbon neutrality” benefits will take time to materialize
For the steel industry, the “carbon neutral” policy is expected to increase the proportion of electric furnace steelmaking, but subject to factors such as the supply of raw materials and raw material prices, the increase in the proportion is not a “made in a day” matter.
“We have plans to build a new electric furnace steelmaking project, but it will not be implemented soon.” An executive from a 10-million-ton steel company in the north told reporters that the advantage of electric furnace steelmaking with higher furnace steelmaking lies in the reduction of carbon emissions. It is of great significance for my country to achieve the goal of “carbon neutrality”.
Although electric furnace steelmaking and higher furnace steelmaking have obvious advantages in carbon emissions, the crude steel produced by electric furnace steel in my country only accounts for about 10% of the total output, which is lower than the global average level of 20% of electric furnace steel. However, the aforementioned steel companies also said that in terms of the raw material scrap required for blast furnace steelmaking, uneven quality and limited output exist in my country, which also restricts the development of electric furnace steelmaking to a certain extent. “What we understand is that the domestic annual output of scrap steel is less than 200 million tons, which is far behind the annual output of 1 billion tons of steel, so there are certain difficulties in large-scale electric furnaces.”
This is indeed the case. A person close to Fangda Carbon told reporters that although “carbon neutrality” has greater expectations for increasing the proportion of electric furnace steelmaking and is of great significance to driving the development of china carbon graphite billet, in terms of the current situation of the company’s current orders, it is higher than the end of 2020. There is not much change, the downstream electric furnace steel has a general demand for china carbon graphite billet.
“Even the replacement of blast furnaces by electric furnaces requires a process, and the ratio cannot be increased rapidly.” For the current general demand, the aforementioned people further believe that, as the steel companies said, insufficient supply of scrap steel and other materials required for electric furnace steelmaking is also the main reason. the reason. “The reason why electric furnace steel has not developed so fast in the past is because our scrap storage is not enough. In the future, with the increase in scrap production, the proportion of electric furnace steel may increase.”
A research report by a brokerage firm believes that the carbon emission ratio per ton of electric furnace steelmaking and blast furnace steelmaking is 0.5:1.9. In addition, China carbon graphite billet is the main raw material of electric arc furnaces. Therefore, “carbon neutrality” is important to the China carbon graphite billet industry. In terms of development, there must be positives.
“The development of electric furnace steel must be the general trend. It is a real benefit for the china carbon graphite billet industry, but for the moment, it needs specific policy support.” A brokerage researcher said.