Dec. 09, 2024
Electrode export prices, $ /
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tonne YearMonthIndian exportsTable last updated: 24th October . Next update: ~ 28th December .
1) Figures above are average monthly fob export [not spot prices] for steelmaking electrodes shipped from India. All prices are expressed in US dollars per metric tonne.
2) The price data is for harmonised system code # which is defined as carbon or graphite electrodes of a kind used for furnaces.
3) Note that latest price points (the last one or two months in particular) may change, as additional customs data becomes available.
Needle coke (produced from petroleum or coal tar) is the major raw material used in the manufacture of ultra-high power (UHP) graphite electrodes. Needle coke is increasingly also used to make lithium-ion batteries for mobile phones and electric vehicles. It is the growth in the demand for needle coke for these newer applications - as well as closure (for environmental reasons) of much graphite electrode production capacity in China during - that markedly tightened the availability of graphite electrodes for electric steelmaking in late / early .
Leading world suppliers of graphite electrodes include GrafTech International, Ohio, USA; Graphite India, headquartered in Bengal; Showa Denko Carbon, headquartered in Ridgeville, South Carolina, USA; and Nippon Carbon, which has its HQ Chuo-ku, Tokyo, Japan. Other noteworthy producers also incude HEG based in Delki India; and Tokai Carbon who are located in Tokyo, Japan.
Fastmarkets assessed the fortnightly price for graphite electrodes, HP, fob China at $2,300-2,400 per tonne on July 5, down $100 from $2,400-2,500 per tonne on June 21.
Fastmarkets fortnightly assessment of graphite electrodes, UHP, fob China was at $2,485-3,100 per tonne on July 5, widening downward by $265 from $2,750-3,100 per tonne previously, with liquidity reported at the low end for UHP 500 mm.
Market participants unanimously agreed that slow demand is pressuring the electrodes market, both domestically and abroad. The UHP spread on Fastmarkets assessment widened to $615 per tonne on July 5 from $350 per tonne on June 21.
A deal was reported at $2,485 per tonne for UHP 550 mm, while offer prices were as high as $3,600-4,000 per tonne.
The wide gap could be attributed to the fact that producers costs in China vary depending on whether they use imported or locally produced material, according to sources.
Even for the same supplier, the price could be different based on the raw materials used. Some tend to use domestic calcined needle coke, while others use imported coke, subject to the demand from their clients in different regions around the world, a producer source in China told Fastmarkets.
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Producers that use domestic feedstock were able to lower their offer prices in response to weak demand, while the relatively high costs of imported feedstock have narrowed margins for producers that use that material, sources said.
Prices for imported calcined needle coke were around $950-1,700 per tonne on June 29, while domestic prices stood at around 6,500-9,500 yuan ($899-1,315) per tonne on the same day.
You can produce up to UHP 600 mm electrodes with the good quality domestic pet coke, a trader in Europe said. But electrodes prices are so low now that some producers are out of the market.
It is very hard for producers using imported needle coke under the present circumstances of sustained demand weakness. We dont expect inquiries for material to pick up in Europe until September, a second trader in Europe said.
The widening spread for UHP could also result from some cashflow factors with some trying to cash out while the market is under pressure. But this cases could be rare given that major producers are quoting prices based on the supply-demand fundamentals, a second producer in China said.
Demand for electrodes in China has been muted by weak consumption rates from the downstream steel sector.
Electric arc furnaces are experiencing very limited marginal profits these days. Additionally, demand for steel remains weak. Steelmakers tend to keep inventory low during the slow summer season, a source from one steelmaker in China told Fastmarkets.
Steel prices may be a little higher now in China, but production remains very low, the first trader in Europe said.
The market is saturated in China, so graphite electrodes prices are falling. A recovery in the export market and a boost to add stimulus is needed, a third trader in Europe said.
Keep up with the latest news, market intelligence and trends in the graphite market when you visit our dedicated graphite market page.
Get an in-depth, 10-year view into where and when graphite supply will come online with our graphite long-term forecast.
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