How much does graphite electrodes cost?

Graphite electrodes play a critical role in various industries and their pricing can have significant impacts.

Explore the factors influencing graphite electrode costs and the latest market trends in our comprehensive article.

China's Graphite Electrode Price Trends

Fastmarkets reported a decline in the fortnightly price for graphite electrodes, HP grade, fob China, to $2,300-2,400 per tonne as of July 5, down from the previous range of $2,400-2,500 per tonne on June 21.

Market Conditions and Insights

Similarly, the price of UHP grade graphite electrodes fob China was assessed at $2,485-3,100 per tonne, showing a downward shift from the earlier range of $2,750-3,100 per tonne. Transactions were reported at the lower end for UHP 500 mm, while deals for UHP 550 mm were as low as $2,485 per tonne, with offer prices reaching as high as $4,000 per tonne.

According to market participants, the slow demand is a major contributing factor pressuring the graphite electrode price both domestically and internationally. The price spread for UHP grade widened significantly due to this weak demand.

Influence of Raw Material Costs

The disparity in graphite electrode pricing can be attributed to varying production costs within China, depending on whether producers utilize imported or domestic materials. Sources indicate that using domestic calcined needle coke allows producers to lower their offer prices, while the high costs of imported feedstock compress margins.

As of June 29, prices for imported calcined needle coke were between $950-1,700 per tonne, whereas domestic prices ranged from 6,500-9,500 yuan ($899-1,315) per tonne. A European trader noted that up to UHP 600 mm electrodes could be produced using high-quality domestic pet coke, but the plummeting prices have driven some producers out of the market.

Impact on the Steel Sector

The weak demand for electrodes in China is largely due to the sluggish activity in the downstream steel sector. Electric arc furnaces are experiencing minimal marginal profits, and demand for steel remains low. Consequently, steelmakers are keeping their inventories low during the summer lull.

However, as one European trader highlighted, a recovery in the export market accompanied by stimulus measures might be essential to stabilize the falling Super High Power Graphite Electrode prices in China.

Keeping Up with Graphite Market Dynamics

Stay informed about the latest news, market intelligence, and trends in the graphite market by visiting our dedicated page. For an extensive 10-year outlook on graphite supply, make sure to check our long-term forecast.

Key Properties of Graphite

Graphite, a highly common mineral, is noted for its strong production resistance. It is also recognized for its suitability in all-metal products and its resistance to various chemicals.

Utilization of Graphite

Graphite sees widespread use in metallurgy. Whether used in its raw or processed form, it plays a significant role in various metallurgical applications. Additionally, graphite exists as ammonium dichromate or a form of nitrate and is pivotal in numerous industrial processes.