At present, the market price of graphite electrode in China is at a relatively low level, and it is unlikely that the market will continue to decline substantially. From the beginning of June to now, the mainstream transaction prices of ultra high, medium and small specifications and super large graphite electrodes are mainly stable, and the overall market change is not big. Some low price orders are mainly affected by the furnace conditions of the bidding steel plant, and their requirements for graphite electrode performance parameters are relatively broad, so there are differences in prices, which belong to individual phenomenon.
Current situation of graphite electrode Market in China
Large capacity and high stock. The main reason for the high stock inventory, especially the ultra-high 600mm, is that affected by the market factors in 2019, the Middle East countries need to strongly lead to overproduction. In addition, affected by the epidemic situation in 2020, the demand of domestic EAF steel market and export market will weaken one after another, leading to a rapid fall in prices.
The price is lower than the cost line. If the coal tar pitch is 2270 yuan / ton and the processing cost is 12000 yuan / ton, the cost of oil-based needle coke is about 18000 yuan / ton, and that of coal-based needle coke is about 17600 yuan / ton when the coal-based needle coke is 5000 yuan / ton. However, the current domestic price of some ultra-high 600 mm graphite electrodes has been lower than the cost line.
Graphite electrode enterprises control the production rhythm, some enterprises stop production and clear inventory. At present, most of the graphite electrode enterprises control the output to the minimum to avoid ineffective production and increase inventory pressure. Some small and medium-sized graphite electrode enterprises have not started operation since, and have mainly cleaned up the inventory; others have chosen to suspend pressing and other processes to effectively clean up the online inventory.
According to the sales, lock the price. Under the influence of weak market operation, graphite electrode enterprises usually adopt the strategy of production according to sales, and make production plan according to orders on the premise of ensuring a reasonable circulation of inventory. At the same time, due to the confusion of market price, some enterprises choose to sell at lock price. If the price is lower than the enterprise cost price, they will not ship any more.