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The graphite electrode market will bottomed out rebound again

[vc_row][vc_column][vc_column_text]Recently, the price of graphite electrode raw materials has risen, and the downstream steel market prices have slowly risen. At the same time, the overall inventory of graphite electrodes in the current market is slowly falling. Both ends of supply and demand are gradually becoming balanced. The graphite electrode market may in a short rebound. The specific influencing factors are as follows:

  • Domestic epidemic control is stable and China’s economy is resilient

In 2020, due to affected by the COVID-19, the global economy will decline. However, due to the timely control of the epidemic and reasonable response plans, China has basically been effectively controlled. The economy and the resumption of production and work of real enterprises have also taken the lead in getting out of the haze of the epidemic. Judging from various economic data and industrial production index and other data, China’s economy is relatively resilient and can deal with risks.

  • Steel production increases, steel prices rise, and the graphite electrode market continues to lose money

Despite the global economic downturn in 2020, foreign steel mills will be affected by the epidemic in general, but China’s crude steel output will still maintain a steady growth. The price of rebar has continued to rise since March, and as of 5th, September, the overall increase was 11.11%. In the graphite electrode market, prices continued to decline due to the large supply of goods in the market. As of 5th,September, the overall price of graphite electrodes dropped by about 18.36%, of which ultra-high and small specifications dropped by 16.67%, and ultra-high and large specifications dropped by 38.18%. Graphite electrodes are the company’s loss larger.

  • After long-term consumption, the graphite electrode market to meet the balance point of supply and demand

Since 2019, the overall supply of China’s graphite electrode market has been relatively surplus, and graphite electrode companies are also effectively controlling their start-ups. Since the Spring Festival of 2020, affected by the epidemic and other factors, the graphite electrode market has been in downturn, and graphite electrode companies have not started high, and the overall operating rate of the industry has been far below the level of the same period in 2019. Graphite electrode companies mainly consume inventory. Up to now, the supply of ultra-high and small-size market for refining furnaces is still tight, and the supply of ultra-high and large-size market is also close to the equilibrium point of supply and demand. Therefore, the overall situation is about to change.

  • graphite electrode
  • The raw material needle coke with the lower rate of operation, and the price of low-sulfur petroleum coke is rising

At present, the average operating rate of China’s needle coke enterprises is about 43%. Except for Baowu Carbon Material which  started construction at the end of August, the companies that are still suspending production and maintenance include HenanBaoshun, XuyangJinzhou, China Airlines Energy, ZaozhuangZhenxing and Fangdaxi Kemo, all of which are in a state of consuming inventory due to the downturn in the downstream market.

The price of low-sulfur petroleum coke continues to rise. The rise in the price of low-sulfur petroleum coke will play a certain role in promoting the graphite electrode market, which is currently at a low price, and the price of graphite electrode will increase in the futre.

In summary, the overall domestic economic environment will remain stable. At this stage, China’s graphite electrode market is already at a relatively low level, and graphite electrode companies are losing money as a whole. Graphite electrode companies have not started high, and graphite electrode inventories are also in a slow downward state, approaching the balance point of supply and demand. The recent increase in raw material prices has also forced graphite electrode companies to raise prices appropriately. Therefore, form the perspective of the overall market environment, there is a rebound in the graphite electrode market. It is expected that prices will continue to increase in the later period.[/vc_column_text][/vc_column][/vc_row][vc_row btn_title=”Improve the ladle lining life” btn_link=”” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_width=”” btn_height=”” btn_padding_left=”” btn_padding_top=”” btn_title_color=”#ffffff” btn_bg_color=”#6b96bf” ult_btn_custom_onclick=”” btn_hover=”ubtn-no-hover-bg” btn_anim_effect=”none” btn_bg_color_hover=”” btn_title_color_hover=”” button_bg_img=”” btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”” btn_color_border=”” btn_color_border_hover=”” btn_border_size=”1″ btn_radius=”3″ btn_shadow=”” btn_shadow_color=”” btn_shadow_color_hover=”” btn_shadow_size=”5″ btn_shadow_click=”” enable_tooltip=”” tooltip_text=”” tooltip_pos=”left” btn_font_style=”font-weight:bold;” btn_font_size=”desktop:20px;” rel_attr=”” ult_btn_custom_onclick_code=”” css_adv_btn=”” btn_font_family=”” btn_line_height=””][vc_column][ult_buttons btn_title=”LMM GROUP One stop solution for steel industry – Steel Intelligent leader.” btn_align=”ubtn-center” btn_title_color=”#ffffff” btn_bg_color=”#6b96bf” icon_size=”32″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_font_style=”font-weight:bold;” btn_font_size=”desktop:15px;”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

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As professional one-stop solution provider, LIAONING MINERAL & METALLURGY GROUP CO., LTD(LMM GROUP) Established in 2007, and focus on engineering research & design, production & delivery, technology transfer, installation & commissioning, construction & building, operation & management for iron, steel & metallurgical industries globally. 

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