good conductivity graphite electrode

Pubdate: 07-08 2021

Analysis of the current situation of the good conductivity graphite electrode market

At present, the market price of good conductivity graphite electrode in my country is now at a relatively low level, and it is unlikely that all of them will continue to fall sharply. From early June to the present, the mainstream transaction price of good conductivity graphite electrode with super high, medium and small specifications and super large specifications is mainly stable. There is little change in the whole. Some low-price orders are mainly affected by the furnace conditions of the bidding steel mills, and their requirements for the performance parameters of the good conductivity graphite electrode are relatively extensive, so there are also differences in prices, which are a single phenomenon.

good conductivity graphite electrode

The production value of my country’s good conductivity graphite electrode from January to May 2020

According to statistics, the output value of 42 domestic good conductivity graphite electrode companies in May 2020 was 60,700 tons, a decrease of 2300 tons from April, a decrease of 3.65%, and a decrease of 8,600 tons from the same period last year, a decrease of 12.41%.

The operating rate of my country’s good conductivity graphite electrode in May 2020

In May, the output value of my country’s good conductivity graphite electrode declined, and the operating rate dropped. Because the overall operation of the good conductivity graphite electrode market is relatively weak, the price of steel mills continues to decline during the bidding process, which is seriously lower than the production cost of the good conductivity graphite electrode company. Therefore, some good conductivity graphite electrode companies choose to reduce production or suspend part of the process to control. Production rhythm.

my country’s good conductivity graphite electrode market status

The production capacity is large, and the stock inventory is relatively high. The stock of shopping malls is relatively high, especially super-high. The main reason is that due to the impact of shopping malls in 2019, the intense demand in Middle Eastern countries has led to excessive production. Coupled with the weakening of domestic electric furnace steel market and export market demand affected by the epidemic in 2020, prices have fallen rapidly.

The price is low, below the cost line. Calculated with coal pitch 2270 yuan/ton and processing fee yuan/ton, oil-based needle coke costs about 6,000 yuan/ton, and the cost is about yuan/ton, and coal-based needle coke costs 5,000 yuan/ton, and the cost is about yuan/ton. Ton. At present, the price of some domestic ultra-high good conductivity graphite electrodes is now lower than this cost line.

The good conductivity graphite electrode company controlled the production rhythm, and a single company stopped production to clear inventory. At present, most good conductivity graphite electrode companies have controlled their output value to a minimum to prevent ineffective production and increase inventory pressure. Some small and medium-sized good conductivity graphite electrode companies have not started construction since the beginning of the year, and they have mainly sorted their inventory; others have chosen to suspend the profiling and other processes to effectively organize their online inventory.

Set production by sales and sell at lock-in price. Affected by the weak operation of shopping malls, good conductivity graphite electrode companies now adopt the strategy of determining production based on sales to ensure a reasonable circulation of inventory and formulate production plans based on order status. At the same time, because of the price confusion in shopping malls, some companies choose to sell at lock-in prices, and no longer ship products below the company’s cost price.

Favorable policies to build a national electric furnace steelmaking base. In recent years, the state has increased the development of the electric furnace steel industry. During the National Two Sessions in 2020, electric furnace steel was mentioned again. Liu Bingjiang, a member of the National Committee of the Chinese People’s Political Consultative Conference and Director of the Department of Atmospheric Environment Management of the Ministry of Ecology and Environment, said: The “scattered and polluted” enterprises and clusters in the “haze nest” of steel companies’ long-chain processes are transformed into short-chain processes, and domestic and foreign steel scrap is used as a resource to replace iron ore, and to build a national electric furnace steelmaking base.” From a long-term perspective, the good development of the electric furnace steel market will surely drive the good conductivity graphite electrode market to rebound again.

my country’s good conductivity graphite electrode market outlook forecast

At present, the overall operating conditions of the good conductivity graphite electrode market in my country are relatively stable. Since the good conductivity graphite electrode market continues to decline after the Spring Festival, the main factor for the decline is still caused by oversupply. But now the market price of good conductivity graphite electrode in my country has reached a level where it cannot fall. Good conductivity graphite electrode companies have not volunteered to cut prices, but there are still sporadic low-priced orders disrupting the market, so the market for good conductivity graphite electrode is still stable. It will take a while. Therefore, it is expected that in June, the price of a single order of good conductivity graphite electrode in my country’s good conductivity graphite electrode shopping malls may have a narrow downward adjustment, and the fluctuation will be 300-500 yuan/ton.


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