Chinese Graphite Electrode Prices Inch Down amid Tepid Demand

After remaining stable over the last two weeks, China’s higher grade Graphite Electrode prices plunged down by RMB 2,000/MT (USD 298/MT) this week.

Subsequently, the prevailing prices of 600mm UHP grade GE is heard to be around RMB 56,000 – 68,000 per tonne (USD 8,340 – 10,130/MT). The prices of 450mm UHP grade graphite electrodes is around RMB 34,000 – 36,000/MT (USD 5,000 – 5,300/MT).

According to the market sources, the key reason for the decline in GE prices is large stocks and low operating rates of downstream steel mills. Also, although the overseas inquiries have increased as against last week the actual transaction volume is relatively small resulting in high inventory. It is being forecasted that the GE prices would move down further in the coming week amid ongoing production cuts in steel mills as a part of environmental concerns.

The needle coke prices that have been on a rise since long have turned stable amid weak demand from graphite electrodes segment. China’s domestic needle coke prices are heard at RMB 23,000 – 27,000/MT (coal-based) and the imported needle coke prices in China are at USD 3,900 – 4,200 per tonne.

China’s Needle Coke Imports in Jan’19

According to China’s customs data, the country imported about 7,997 tonnes of petroleum needle coke in Jan’19, down by 30% against Dec’18 and by 23% against Jan’18. Out of the total imports, highest imports were made from UK at 6,166 tonnes, down by 40% m-o-m basis and 13% y-o-y basis. About 924 tonnes was imported from Japan, down by 4% m-o-m and 9.2% y-o-y.

In case of coal-tar pitch needle coke imports, China imported about 7,693 tonnes, up by 20% m-o-m and down by 12% y-o-y. The country imported about 2,624 tonnes from Japan in January 2019, down by 25% against Dec’18 and by 9% against Jan’18. In the same month, China imported about 4,759 tonnes from South Korea, up by 65% m-o-m and down by 19% y-o-y basis.