The Chinese domestic graphite electrode market prices continued to rise during the end of January 2020, with an increase ranging from 500-2000 yuan/ton of RP and HP grade.

Market aspect

Affected by the severe covid-19 pandemic in the north China, most of the graphite electrode manufacturers in Hebei province have been suspended, and transportation vehicles have been strictly controlled. As a result, the local graphite electrodes supply has been affected.

Graphite electrode manufacturers in some parts of Shanxi Province reported that it is more difficult to delivery to the northern. However, the southern region is relatively smooth, but the procurement of raw materials in the northern is blocked because of the block down. If the pandemic does not improve significantly after the Chinese Spring Festival, it is expected to face a shortage of raw materials after the holiday.

As of this Thursday(21st,Jan), the mainstream price of UHP450mm with 30% needle coke content on the market is 15-15.5 thousands yuan/ton, the mainstream price of UHP600mm is 18.5-19.5 thousands yuan/ton, and the price of UHP700mm remains at 22-24 thousands yuan/ton. With the approach of the Spring Festival and the impact of the Covid-19, the domestic graphite electrode capacity utilization rate has dropped significantly. Coupled with transportation controls in some regions, the market price of graphite electrodes continues to rise.

Steel Makers

Domestic steel prices fluctuated slightly this week. At present, the overall market transactions are average. Downstream users mainly purchase a small number of times. Many construction sites have holidays due to the Spring Festival or the epidemic. Social inventories continue to rise. It is expected that short-term steel prices will mainly fluctuate slightly. The demand for scrap steel in the market has not decreased in the near future, and the price of scrap steel before the holiday is not expected to drop significantly. Electric furnace steel mills are expected to suspend production from next week.