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US graphite electrode emergency
March 16, according to CBC Metal, March 15, domestic graphite electrode prices continue to rise, including 450mm ultra-high power graphite electrode jumped 15.63%, reported 18,500 yuan / ton; 400mm ultra-high power graphite electrode jumped 4.97%, reported 15,850 yuan / ton. This year, it has risen by 29%. From the point of view of shopping mall sources, there is a shortage of UHP350mm and UHP400mm sources. After the further increase in the price of needle coke and other materials, graphite electrode prices still have room to rise, graphite electrode factory inventory has fallen to a low level.

The primary downstream application of graphite electrodes is electric arc furnace steel making, accounting for about 50% of the total consumption. Huabao securities research report is expected to follow the domestic carbon neutral policy under the electric furnace exercise increase, 2021 graphite electrode shopping mall is expected to usher in a reversal, graphite electrodes in the first half of the year will still have room to rise, the second half of the year prices will adhere to the stable.

Data show that in 2015, the world electric furnace steel production accounted for 25.2% of the total crude steel production percentage, the United States, the EU 27, Japan were 62.7%, 39.4%, 22.9%, while China's 2015 electric furnace crude steel production accounted for 5.9% of the total production percentage, far below the world level. Under the carbon neutral policy, the special steel industry with electric arc furnace as the primary production equipment is expected to develop rapidly, the raw material of electric furnace steel scrap resources in the future, thus boosting the demand for graphite electrodes.

With the demand pushing forward, institutions predict that the profit space of head manufacturers will further increase. The past two years graphite electrode industry boom down, the domestic graphite electrode leading company results in 2020 significant decline, the overall industry in low expectations, low valuation stage, the agency indicates that with the improvement of the fundamental aspects of the industry, as well as graphite electrode prices gradually return to a reasonable level, professional leading enterprise results will fully benefit from the bottoming out of the graphite electrode market rebound.

Now, in the ultra-high power graphite electrode market, the first four enterprises occupy more than 80% of the market share, the professional concentration is more significant, and the bargaining power of manufacturers to the downstream steelmaking industry is strong, requiring downstream customers to pay for delivery and not to supply the accounting period. In addition, China's graphite electrode production capacity accounts for more than 50% of the global production capacity, which makes China become a net exporter of graphite electrodes, and the overseas sales revenue of China's graphite electrode enterprises has increased significantly.

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