In terms of production, the operating rate of the graphite electrode industry has remained relatively low compared to previous years. As of the end of October, the overall operating rate of the graphite electrode industry was 53.33%. In October, some companies need to consider the impact of weather and environmental protection policies and have certain stocking behaviors. The industry operating rate has increased slightly, but as the weather turns cold and the implementation of the autumn and winter environmental protection policy, the graphite electrode industry operating rate will still fall.


Raw material analysis: In October, the price of graphite electrode raw materials rose in an all-round way. Petroleum coke suppliers have relatively frequent price increases due to low inventories and tight supply. Due to better downstream market demand, petro coke refineries have explored the price of petcoke. The market as a whole is on the upward trend; the low-sulfur calcined coke market demand is good, manufacturers have no pressure on shipments, and the raw material price of petroleum coke has risen, supported by the favorable cost and demand sides, the price of calcined coke has also increased; the current downstream procurement of coal tar pitch The pace has slowed down, but the price of raw material coal tar continues to rise, and coal tar pitch manufacturers are under greater cost pressure. Coal tar pitch has a strong market game atmosphere; the current performance of the needle coke market is relatively stable, but the price of raw materials in the needle coke market rises and downstream Supported by the positive demand on both sides, the needle coke market is generally bullish.


Cost analysis: The increase in the price of raw materials has further compressed the profit margin of the graphite electrode industry. Although graphite electrode companies have increased the price of graphite electrodes along with the market, the increase in the price of graphite electrodes is still not as large as the increase in costs caused by the upward price of raw materials. Compared with the transaction price of electrodes, the electrode market as a whole is still at a loss.

Export analysis: According to customs statistics, China’s graphite electrode exports in September 2020 were 25,800 tons, a decrease of 7.38% from the previous month and a year-on-year decrease of 45.41%; China’s total exports of graphite electrodes from January to September 2020 was 234,800 tons. A year-on-year decrease of 25.02%. However, according to market feedback, the graphite electrode export market has picked up in October, and the demand for graphite electrodes in the Middle East has improved, and some companies have reported a slight increase in export orders.

On the market side: the recent bullish sentiment in the graphite electrode market is more obvious. On the one hand, the continuous upward price of raw materials has a positive support for the graphite electrode market; on the other hand, due to environmental protection and production restrictions, the downstream steel mills of graphite electrodes have a small amount of production increase plans, and domestic demand has improved compared with the previous period, with ultra-high and small specifications Demand for graphite electrodes has increased. Graphite electrode companies often cut production due to poor early-stage demand. The supply of ultra-high and small-size graphite electrodes in the market is slightly tight. In addition, the export market has rebounded, and the pressure on the domestic market may be further reduced, which is beneficial to the upward price of graphite electrodes.

Market outlook: In the near future, the overall price adjustment of the graphite electrode raw material market is relatively frequent, and the initial loss made up by the slight increase in the price of graphite electrode is almost offset by the increase in raw material prices. At present, the downstream steel mills of graphite electrodes accept the price of graphite electrodes to a fair degree, but the steel mills still have a wait-and-see attitude and do not stock up. The graphite electrode industry is still at a loss. If the raw material market maintains the current trend, graphite electrode companies may adjust their prices in order to reduce their losses. The price adjustment is expected to