Graphite electrode market in the middle of August

General situation:

Recently, the graphite electrode market has been running weakly and stably, and the quotations of enterprises have been at a low level.The industry as a whole is in a loss-making stage, and wait-and-see sentiment spreads. Due to the continued weak market conditions, some companies are no longer shipping at low prices, and the production starts have been reduced in the case of deserted demand, and the overall supply of goods in the electrode market is relatively small. 

Raw material market:

The price of petroleum coke at the raw material side is stable and slightly adjusted. Due to the general performance of downstream demand, the price of low-sulfur coke has not been adjusted much. The operation of coal tar pitch is relatively strong, and the cost and supply side provide strong support for the price of coal tar pitch, and companies generally hold a price increase sentiment. The needle coke market is temporarily firm, and the price of cooked coke does not fluctuate much, and there is still support for the cost of electrodes.

Downstream market:

The operating rate of downstream electric furnace steel has increased slightly recently, the impact of the off-season has gradually weakened, the consumer side has also rebounded, and the production activity of steel mills has increased slightly. However, in the environment where the steel production reduction policy remains unchanged, the growth of steel mills is limited, and the growth of demand for electrodes is also limited.

Comprehensive view:

In the short term, the overall operation of the raw material market is stable, slightly supporting the cost of electrodes. Although the construction of downstream electric furnace steel increased slightly, it lacked continuous support for the demand for electrodes. The short-term market will continue to be in a situation of weak supply and demand, but in the case of corporate losses, there will be limited room for prices to continue to be lowered. Therefore, it is expected that the short-term electrode market will be stable and weak.