How much is a ton of graphite electrodes in 2020

Recently, the prices of many graphite electrodes have been very unstable, and the prices have continued to decline, causing the recent sales of some specifications of graphite electrodes to lose 3000 yuan/ton per ton. This level of loss has made this year's not optimistic market even worse.

As we all know, the production cycle of graphite electrodes is relatively long, generally about 2 months, especially for ultra-high graphite electrodes, the required cycle is generally about 3-4 months. At present, the products sold on the market started rolling off the assembly line at least around February and March. At this time, the price of needle coke raw materials is 7000-8000 yuan/ton, and the price of calcined coke is about 3000 yuan/ton.

It is estimated that the production cost of graphite electrodes should be 10,200 yuan/ton, which does not include labor, electricity, equipment depreciation, etc., and according to the manufacturers’ current UHP450mm needle coke content in the market at 30%, the price is as low as 10,800 yuan. Per ton, there is indeed a loss of nearly 3,000 yuan per ton.

The price reduction of graphite electrodes was mainly due to the backlog of electrode inventories under the influence of the economy at the beginning of the year. At present, the graphite electrode market is down, and there is another most important reason-export restrictions. At present, due to the epidemic situation abroad, production in many countries has almost stalled. In March 2020, China’s graphite electrode export volume was 38,000 tons, an increase of 111.2% month-on-month and an increase of 31.63% year-on-year. From January to March 2020, China’s graphite electrode exports totaled 87,700 tons, an increase of 15.18% year-on-year. In March 2020, China The main exporting countries of graphite electrodes are: Malaysia, Russia and Italy. But after entering the second quarter, foreign orders for electrodes were almost "halved."

Business in many industries is not very good this year. For electrode sellers, this year they have to tighten their belts. Graphite electrodes have always been an indispensable material for steelmaking. For many steel companies, this may be a good time to purchase graphite electrodes. But the national economy is a whole. When an industry is hit, its associated industries will also be affected to a certain extent.

After the prosperous and prosperous period of 2017 in China, the graphite electrode market in China has gradually entered a downward trajectory since 2018. The price war began to appear at the beginning of 2019. After October 2019, the demand in the Middle East has weakened, with a large amount of inflow of supply, and the ultra-high price of 600mm Kill quickly. Affected by the epidemic in 2020, domestic demand has dropped sharply, foreign orders have been delayed, and a large number of sources have hit the domestic market. The price increase after the Spring Festival is only a flash in the pan. Afterwards, gun smoke spread and price wars intensified again.

However, with the recovery of domestic and foreign markets, it is difficult for graphite electrodes to continue to decline, and a simple price war is difficult to continue. An industry can achieve orderly and sound development only if it maintains a normal price order.