Cost pressurization is obvious, graphite electrode market price bullish expectations are still strong

Cost pressurization is obvious, graphite electrode market price bullish expectations are still strong

a. The cost pressure has increased significantly and the graphite electrode market is of limited profit.

This month graphite electrode upstream low sulfur petroleum coke, needle coke prices overall upward ,In particular, the price of low sulfur petroleum coke has increased several times this month, up about 600-700 yuan/ton from the end of January ,At present, the price of low sulfur petroleum coke in Fushun and Daqing has reached 6900-7000 yuan/ton ; Driven by the substantial upward trend of low sulfur petroleum coke, the price of low sulfur calcined coke rises synchronously. At present, the price of some high quality calcined coke has reached 9500-10000 yuan/ton .Needle coke also rose this month, the current average market price of 10510 yuan/ton.

In addition, it is understood that under the support of positive factors such as stable demand for anode materials, the market price of low sulfur petroleum coke and needle coke is still expected to rise, and the pressure running state of the cost surface of graphite electrode is difficult to ease.

According to the current graphite electrode market low sulfur petroleum coke, coal asphalt, needle coke price calculation, graphite electrode enterprise production cost is about 20000 yuan/ton.The cost side continues to squeeze the profit space of graphite electrode enterprises, graphite electrode price increase is still not as high as raw material prices, graphite electrode market profit is still limited.

b. Tight supply is good for graphite electrode price increasing !

At present, the graphite electrode enterprises in Henan, Hebei, Shanxi, Shandong and other regions are under the Environmental protection control of the Winter Olympics, and the enterprises are greatly affected by the production limit. Some enterprises have stopped production and are expected to resume production at the end of February or early March.

The graphite electrode market as a whole is insufficient, some graphite electrode enterprises said that the enterprise has some specifications of graphite electrode is out of stock, the superposition of the current graphite electrode market cost is high, some graphite electrode enterprises are reluctant to sell, graphite electrode market supply tends to be tight.

c. Graphite electrode demand is expected to improve

At present, the downstream steel mills of graphite electrode are still in the resumption stage, and the market demand of graphite electrode is mainly based on early orders, with a small number of new orders. Due to the winter Olympics and crude steel production before the Spring Festival, the graphite electrode stock is less than in previous years, with the resumption of steel mills, graphite electrode demand is better .In addition, graphite electrode prices to a certain extent to stimulate some steel mills and traders to buy better sentiment.

Later market forecast ,Pre-market orders for graphite electrodes are still being executed,But it is understood that part of the new transaction price has been up, graphite electrode market to maintain the overall upward market. In addition, graphite electrode market inventory low superposition cost is high, graphite electrode price upward power still exists, graphite electrode enterprise bullish expectations are obvious . To sum up, graphite electrode prices are still expected to increase.