china graphite electrode

Pubdate: 07-01 2021

The price war of china graphite electrode has intensified again: it has the worst loss in history

In 2020, the china graphite electrode market will be full of smoke, the price war will continue to spread, export orders will drop sharply, and a large number of sources will return to the domestic market, resulting in a rapid price drop.

China’s china graphite electrode production analysis in April 2020

According to statistics, the output of 40 domestic china graphite electrode companies in April 2020 was 222,600 tons, an increase of 7,300 tons from March, an increase of 13.11%, and a decrease of 9,200 tons from the same period last year, a decrease of 12.71%. Ordinary 9800 tons, an increase of 11,100 tons from March, an increase of 13.24%, and a decrease of 3,300 tons from the same period last year, a decrease of 25.37%; high power 15,900 tons, an increase of 12,000 tons from March, an increase of 7.99%, compared with the same period last year A decrease of 6,300 tons, a decrease of 28.68%; a super-high 33,400 tons, an increase of 5,000 tons from March, an increase of 15.35%, and an increase of 4,400 tons from the same period last year, an increase of 1.19%. From January to April 2020, the total amount is 222,600 tons, a decrease of 53,000 tons from the same period of the previous year, a decrease of 19.22%. Among them, the general total was 35,700 tons, a decrease of 14,000 tons from the same period last year, a decrease of 28.1%; the total high-power was 58,000 tons, an increase of 24,600 tons from the same period last year, a decrease of 29.79%; the ultra-high total was 129,900 tons, Compared with the same period of last year, a decrease of 14,400 tons, a decrease of 10.05%.

China china graphite electrode price analysis in April 2020

In April 2020, the market price of China’s china graphite electrode dropped sharply. The price of ultra-high and china graphite electrode dropped by 17% compared with the end of March, which was a 60% drop compared with the same period in 2019. China’s china graphite electrode company suffered a total loss, which can be said to be the worst loss in history. At present, the price of china graphite electrode is basically close to historical lows, but the price of raw materials is relatively high at this stage, so the overall loss is relatively serious. At present, the individual transaction price of ultra-high has reached RMB/ton, and the price of ultra-high has also broken through RMB/ton. Industry insiders said that the price will continue to decline slowly.

China graphite electrode export analysis in March 2020

[Customs data] China exported 38,000 tons of graphite electrode in March 2020, an increase of 111.2% month-on-month and an increase of 31.63% year-on-year. From January to March 2020, the total export volume of China’s China graphite electrode was 87,700 tons, an increase of 15.18% year-on-year. , In March 2020, the main exporting countries of China’s china graphite electrode are: Malaysia, Russia and Italy.

According to customs data in March, the overall export of China’s china graphite electrode still maintained a growth trend in the first quarter. Judging from the feedback from China’s china graphite electrode companies, although the first quarter was affected by the epidemic, the foreign epidemic did not break out, and many orders were signed in the early stage, so the overall export impact was not significant. Since the second quarter, export orders have shrunk significantly. According to traders, some countries in Southeast Asia can still ship in small quantities, and almost all countries with severe epidemics such as Europe and the United States have postponed their delivery time. Therefore, the overall export market of China’s china graphite electrode in the second quarter almost “died”.

After China’s china graphite electrode market experienced the prosperous period in 2017, it did not last long. Since 2018, it has gradually entered a downward trajectory. The price war began to permeate in early 2019. After October 2019, the demand in the Middle East has weakened, and the supply of goods has been influx. , The ultra-high price quickly kills. Affected by the epidemic in 2020, domestic demand has dropped sharply, foreign orders have been delayed, and a large number of sources have hit the domestic market. The price increase after the Spring Festival is only a flash in the pan. Afterwards, gun smoke spread and price wars intensified again.

Baichuan Yingfu believes that the rapid price reduction of china graphite electrode is due to market factors and the poor economic environment, but vicious competition among enterprises and competition for market share are also key factors leading to price drops. In the bidding process, most steel companies rarely comprehensively evaluate the quality of their products, and most of them are based on the lowest price. This does not rule out the phenomenon that individual orders are shoddy. There is no absolute winner in a price war. After the dispute, it can only be scarred. It is a play that kills one thousand enemies and destroys eight hundred, which is not a long-term solution. Therefore, it is hoped that china graphite electrode companies can hold the bottom line of prices, ensure product quality, conduct healthy competition within a reasonable price range, and benefit others and themselves.

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