In 2023, the trend of China's graphite electrodes showed a downward trend, HP grade and RP grade graphite electrodes continued to decline annually, and UHP graphite electrodes occasionally reversed and rebounded. During the year, January was the highest point of the graphite electrode, and in December entered the lowest point of the year.
In the first quarter, affected by environmental protection, Hebei, Shanxi, Henan and other areas of graphite electrode manufacturers have received a stop limited production notice, most of the roasting line, processing line have been stopped, but by the impact of the New Year stock, graphite electrode start and production reached the highest point of the year, the market supply and demand stock is obvious, consumption of a certain amount, after the downstream normal, graphite electrode prices fell.
In the second quarter, with the increasing stability of downstream demand, and the sufficient production of graphite electrodes in the first quarter, the state of oversupply has been achieved, some production cuts have occurred in graphite electrode manufacturers, the overall production has been reduced, small and medium-sized manufacturers have a greater impact, most of them are mainly supplied by a few fixed customers, and prices have declined.
In the third quarter, affected by environmental protection policies, downstream demand is decreasing, blast furnaces and electric furnaces are starting to reduce, for graphite electrode consumption is less than expected, most of the graphite electrode manufacturers to consume the previous low price inventory, while affected by the price of graphite electrode raw materials, graphite electrode price reduction speed is becoming more and more intense.
In the fourth quarter, with the downstream in the state of loss for more than half a year, the demand for graphite electrodes has become more obvious, and the continuous decline of graphite electrode raw materials has played a certain role in promoting the cost of graphite electrodes, at the same time, by the end of the year, graphite electrode enterprises to speed up the return of funds, enter vicious competition, fight a price war, quickly pull the price to the trough, break the cost line, no profit, no business, no profit. The graphite electrode quality on the market is mixed.
Overall, in 2023, China's graphite electrode market as a whole is weak, on the one hand, raw material prices promote the cost of graphite electrodes to decline, and the year-on-year decline is larger; On the other hand, the construction and profits of blast furnace and electric furnace steel mills have been significantly reduced year-on-year, effectively curbing the rise in the price of graphite electrodes. The decline in cost and demand has led to a "landslide" in the supply of graphite electrodes, which has interpreted the price decline of graphite electrodes throughout the year in 2023.
In 2023, China's total exports of graphite electrodes were 330,500 tons, down 11,400 tons compared to 2022, and down 3.34% from the same period last year. In 2023, the epidemic was released, affected by the overall high inventory of China's graphite electrode market, and the competition in the graphite electrode market was more fierce, resulting in the price of graphite electrodes continuing to decline, but at the same time, due to the start of downstream blast furnaces and electric arc furnaces at home and abroad and the decline in capacity utilization, resulting in some easing of demand for graphite electrodes and a decrease in exports again.
Industry insiders expect that the graphite electrode market demand in 2024 or will be maintained, steel mills stock less than in previous years, steel mills or in the normal procurement frequency; Around April, the demand for graphite electrodes picked up, graphite electrodes in the second quarter or reach a high level, supply and demand are booming, due to the short-term mismatch between supply and demand, the price war will be more intense. In the third and fourth quarters, the domestic graphite electrode market or high or low. The trend of domestic graphite electrodes in 2024 or 2023 has similarities.
Post time: 06-04-2024
