Can the price of graphite electrode rise in the third quarter?

Since July, the pressure of domestic graphite electrode enterprises has increased significantly, the bidding price gap of steel plants is large, and the market quotation is chaotic.

From the downstream: since June, the domestic steel price has fallen by 600-700 yuan / ton, and the purchase price of steel raw materials has been significantly depressed. Although recently, scrap prices have also fallen sharply at the same time, and the apparent profits of some electric furnace steel mills have even turned into profits, under the situation of weak sales, many electric furnace steel mills are more cautious about resuming production, and pressing the stock is equivalent to a loss. According to the current epidemic situation and financial situation, the steel market demand is expected to gradually recover after the middle of August, and the short-term steel price will continue to be weak.

From the upstream perspective: as the negative electrode market continues to be hot, the price of needle coke is still strong recently, and the price of petroleum coke continues to rise steadily. In terms of the current raw material cost, many graphite electrode manufacturers have been on the edge of loss. Superimposed on the impact of orderly power consumption schemes in some regions, some electrode manufacturers have begun to appropriately limit production. Some electrode manufacturers made it clear that they would not sell below the cost price.

In terms of the overall situation in the third quarter, the supply of domestic graphite electrode resources is expected to decline from July to August to stabilize the market.

Post time: Jul-15-2022