An Analysis Of The Reasons For The Fluctuation Of Graphite Electrode Market

- Jul 28, 2017-

Since the beginning of 2017, graphite electrode ushered in the market "spring", the price all the way up, silence for many years the carbon industry to release an unprecedented explosive. Carbon material prices, especially graphite electrode in short supply, the price is fast, rising sharply, the market quickly from the buyer's market into the seller's market.

Since the beginning of 2017, graphite electrodes ushered in the market "spring", the price all the way up, silence for many years the carbon industry to release an unprecedented explosive. Carbon material prices, especially graphite electrode in short supply, the price is fast, rising sharply, the market quickly from the buyer's market into the seller's market.

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China Carbon Industry Association analysis of the reasons are as follows: a combination of factors:

First, a few years ago the international economic recovery is weak, the domestic economic slowdown, poor economic environment. The economic benefits of the industry is very poor, especially the graphite electrode production enterprises, from 2009 to 2016, the continuous decline in economic efficiency, the majority of business losses, since 2012, graphite electrode manufacturers are all losses, making a considerable number of corporate funds strand breaks Or semi-broken, and some enterprises completely discontinued, and some semi-cut, and some production to maintain production. Normal overhaul, technical transformation can not be carried out, the new enterprises can not put into operation, the whole industry graphite electrode production capacity shrinking, production and sales fell sharply by 26.14%.

Second, the steel industry to production capacity, banned "to the steel", strict control of environmental indicators. Part of the intermediate frequency furnace to change the furnace, part of the furnace has been discontinued after the resumption of production, electric furnace steel than the previous few years the rapid rise in the value of large, making steel graphite electrode demand appears more substantial growth. Moreover, the current domestic scrap reserves are large, but also for the furnace steel than to create the conditions to rise.

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Third, with the increasing emphasis on environmental protection, the relevant state departments to take a series of measures to reduce the haze, protect the environment. Since the fourth quarter of last year, the Ministry of Environmental Protection on the Beijing-Tianjin-Hebei and Beijing-Tianjin-Hebei region 28 cities to carry out the strengthening of air pollution control supervision, known as China's environmental protection since the national level directly organized the largest scale action. May 18 this year, the Ministry of Environmental Protection has issued 2017, No. 773, "on the Beijing-Tianjin-Hebei and the surrounding areas to implement special emission limits of air pollutants announcement." Environmental supervision will be more stringent, wider, more efforts, mainly related to Hebei, Henan, Shandong, Shanxi 4 provinces. This is the four provinces is relatively concentrated carbon enterprises in the province of carbon, the impact of carbon production can be imagined.

Moreover, other provinces (autonomous regions and municipalities) environmental protection requirements are more stringent, high-intensity environmental supervision is also in progress, the nation's carbon production have been or have to be affected. At any time there will be production of carbon enterprises were shut down, was limited production, cut production, some enterprises have long been discontinued due to funds, environmental protection and other factors difficult to resume production. China's carbon products, especially graphite electrode capacity utilization is getting lower and lower. Demand is increasing, the actual output in the reduction, the situation in short supply naturally formed, and difficult to alleviate in the short term.

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Fourth, in the international market, graphite electrode gap is greater. In the case of poor economic environment in previous years, there are six world-renowned graphite electrode manufacturers have shut down, and some enterprises part of the equipment demolition, production difficulties, resulting in capacity gap reached nearly 200,000 tons, making the international The market also showed a situation in short supply. At present, driven by the demand in the international market, the export volume and price Qi Sheng, and even some foreign users take the initiative to raise the price of getting goods requirements.

Fifth, graphite electrode process and production cycle is relatively long, generally 4 to 5 months of production cycle, the market changes, it is difficult to quickly add and reverse. Moreover, some enterprises because of funds, environmental protection and other issues have no way to increase production in the short term.

Six is the rising prices of raw materials, the rapid rise in production costs. Domestic needle-focus from the beginning of this year's 4,000 yuan / ton rose to 25,000 yuan in mid-July / ton, or more than 400%, and the resources are still tight; imported needle from the beginning of this year's 420 US dollars / ton rose to more than in July $ 2,000 / tonne. Similarly, the cumulative price of calcined petroleum coke rose by 140%. Coal asphalt prices are still rising rapidly, in December 2016 Angang Steel, Bengang asphalt prices rose 197.27%, gold source asphalt prices rose 74%, Huanghua asphalt prices rose 117.39%. Comprehensive needle coke, calcined coke, coal tar pitch prices, an average of 236.37%. As of the end of June, the main producing areas of modified asphalt prices for 3650 yuan / ton to 4000 yuan / ton, compared with the end of 2016 or up to 1,500 yuan / ton ~ 1650 yuan / ton; temperature asphalt price of 3300 yuan / ton ~ 3,500 yuan / Ton, or up to 1350 yuan / ton ~ 1400 yuan / ton.

Seven is the production of graphite electrode raw materials --- needle coke and low sulfur petroleum coke supply tight, in short supply. Graphite electrode production can not be heavy volume, it is difficult to meet market demand. High-quality raw materials shortage, the long-term troubled graphite electrode production enterprises.

Over the years the price of graphite electrodes continued to slump, until after the bottom, the carbon market is gradually return to reason, which is driven by the combined effect of the market. Reasonable return of product prices for the carbon business innovation and development, technological progress, equipment upgrades, energy saving and environmental protection, sustainable development provides a guarantee, laid the foundation. At the same time, we have to rationally look at the market, the more in this good situation, the more to keep a clear head, from the long term.

The carbon enterprises to scientific and technological innovation to drive the healthy and sustainable development of enterprises to speed up the upgrading of traditional products to accelerate the development of new materials of carbon; to attach great importance to energy conservation, increase energy efficient and effective investment, strengthen the daily operation and management of environmental protection facilities To ensure that environmental protection standards, clean and civilized production; the more the best-selling products in the case, but also in the supply and demand sides benign interaction, optimize the production and marketing convergence, the more attention to product quality, excellent product quality and after-sales service to win customers long-term trust.