The graphite electrode industry is undergoing a revival in demand as China embarks on its drive to shut down polluting industries in a bid to curb pollution. Graphite electrodes are an essential consumable in the production of steel using EAF. During the downturn, the electrode industry saw consolidation.<\/p>\n
Prices of needle coke – a major raw material used in graphite electrodes – are also soaring.<\/p>\n
The demand for graphite electrodes will likely continue to rise sharply, due to:<\/p>\n
1) China\u2019s fight against pollution. To curb pollution China has started shutting down polluting steel plants and graphite electrode capacity.<\/p>\n
2) Consolidation of graphite electrode Industry & surge in needle coke price Graphite electrodes are an essential consumable in electric arc furnace (EAF) steel production. ~1.7-1.8 kg of graphite electrode is required to produce 1 tonne of steel.<\/p>\n
Key Updates:<\/p>\n
1. HEG and Graphite India, India’s largest Graphite Electrode producers, have decided to discontinue long-term contract prices for next year, and are only accepting monthly contracts.<\/p>\n
2. Prices in India for Graphite Electrode (UHP Grade) have gone up to around USD1230\/MT.<\/p>\n
3. HEG has production capacity of 84,000 MT per annum. Out of total sales, 70-75% is long term contracts generally start from Jan to December.<\/p>\n
4. “Graphite electrode prices in Japan are also rising especially in small diameter which is mainly produced in China. But Japanese mills can get what they need though at a higher price. High quality electrodes are in better situation since they are produced in Japan” commented an Electric arc furnace steelmaker in Japan.<\/p>\n
5. “Supply tightness in graphite electrode likely to continue till 2018 end \u201d as told by a Thailand based electric arc furnace steelmaker.<\/p>\n
6. A Vietnam based electric arc furnace steelmaker said “Graphite electrode prices are moving up especially for spot buyers. We buy electrodes on long term basis and prices are fixed for one year and prices likely to be revised in early 2018.\u201d<\/p>\n
7. Production rise in EU and US bodes well for graphite electrode demand. Capacity shutdowns in China to tackle pollution have resulted in EU and US seeing increased steel production. The EU and US produced 39.7% and 67% of their total steel from EAFs in CY16. Thus, a surge in EU and US steel production would lead to increased demand for graphite electrodes as EAF dominate steel production in these countries.<\/p>\n
8. “Electrode supply has tightened on curtailed Chinese output as well as lower needle coke availability, due to supply-side reforms,\u201d said a leading steel manufacturer from India. He further predicted that the situation is likely to continue in 2018, unless China regularizes production of electrodes or once the graphite electrode manufacturing companies that turned sick – get revived.<\/p>\n
Source Steel Mint powered by Keyvan Jafari Tehrani (JTC)<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" The graphite electrode industry is undergoing a revival in demand as China embarks on its drive to shut down polluting industries in a bid to curb pollution. Graphite electrodes are an essential consumable in the production of steel using EAF. During the downturn, the electrode industry saw consolidation. Prices of needle coke – a major […]<\/p>\n","protected":false},"author":1,"featured_media":1701,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28,21],"tags":[],"acf":[],"yoast_head":"\n