ftb continuum graphite electrode

ftb continuum graphite electrode

graphite electrode: the price of the core product graphite electrode continues to drop

The price of the core product graphite electrode continues to fall, which led to a significant loss in the first quarter of 2019. Specifically, since 2017, the price of graphite electrode has increased greatly. Now with the gradual release of production capacity, the relationship between supply and demand is no longer tight, and the price of graphite electrode has dropped significantly since July 2018. Affected by the sharp drop in the price of graphite electrode, revenue and net profit in the third and fourth quarters of last year have declined year-on-year. In fact, Carbon is in a highly cyclical industry, and the company can achieve very dazzling performance when the industry is booming, but once the industry is in a down cycle, it is difficult to avoid a sharp decline in performance.

What is particularly worrying is that the sales volume of carbon products in 2018 was 178,600 tons, a year-on-year decrease of 7.55%. With the expansion of production, the inventory of carbon products reached 10,400 tons last year, an increase of 44.81% year-on-year. Judging from the current status quo, as the price of graphite electrode continues to decline, the performance in 2019 may hardly exceed the performance in 2017 and 2018.