What is the price of graphite electrodes?

The price of UHP graphite electrodes is not static and is influenced by several key factors:

Read more

1. Raw Material Costs

The primary raw materials for graphite electrodes are petroleum coke and needle coke. Fluctuations in the prices of these materials directly affect the cost of the electrodes. Factors such as crude oil prices, refinery production rates, and the availability of high-quality coke can cause significant price variations.

2. Manufacturing Process

The production of UHP 

 involves multiple stages, including mixing, molding, baking, impregnation, and graphitization. Each stage requires specialized equipment and energy, contributing to the overall cost. The quality and yield of the electrodes also depend on stringent manufacturing controls.

3. Supply and Demand Dynamics

The demand for graphite electrodes is closely tied to the steel industry. An increase in steel production drives up the demand for electrodes, leading to higher prices. Conversely, a slowdown in steel production can result in reduced demand and lower prices. Seasonal variations and global economic conditions also play a role.

4. Import Tariffs and Trade Policies

International trade policies, including tariffs and quotas, can impact the price of graphite electrodes. Countries that rely on imports may face higher prices due to these trade barriers. Conversely, favorable trade agreements can reduce costs.

5. Technological Advancements

Advancements in production technology can influence costs. Innovations that improve efficiency and yield can lower production costs, while the adoption of new, expensive technologies may increase prices temporarily.

Current Market Trends

As of mid-, the market price for UHP graphite electrodes typically ranges from $3,000 to $8,000 per ton. This price range reflects the various influencing factors mentioned above. Here are some current trends:

 A rise in steel production, particularly in developing countries, has led to higher demand for graphite electrodes.

 Global supply chain issues, including shipping delays and raw material shortages, have contributed to price volatility.

Stricter environmental regulations on carbon emissions and waste management in the graphite electrode manufacturing process can increase production costs.

Tips for Procuring UHP Graphite Electrodes

To navigate the complexities of purchasing 

, consider the following strategies:

 Compare quotes from different suppliers to get the best price and terms. Look for suppliers with a track record of reliability and quality.

 Ensure that the electrodes meet industry standards such as ISO and ASTM specifications. High-quality electrodes offer better performance and longer service life.

 If your operations require a steady supply of electrodes, negotiate long-term contracts to lock in prices and ensure supply stability.

 Stay informed about market conditions, including raw material prices and industry demand, to make informed purchasing decisions.

Goto Zhongsheng to know more.

Conclusion

The price of UHP graphite electrodes is influenced by a complex interplay of raw material costs, manufacturing processes, supply and demand dynamics, trade policies, and technological advancements. By understanding these factors and staying informed about market trends, industries can make strategic procurement decisions that optimize costs and ensure operational efficiency.

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.

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 don&#;t 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.

Understand the dynamics of the graphite market

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.

The company is the world’s best Graphite Electrode Wholesale Price supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.