The year 2023 has come to a close, and graphite electrodes, as an indispensable consumable in electric arc furnace steelmaking, played a crucial role in the steelmaking process. Let’s review the market information for Chinese graphite electrodes in 2023 through customs data and then predict the price trends for graphite electrodes in 2024.
According to customs data, China’s graphite electrode exports in December 2023 were 25,600 tons, an increase of 10.63% month-on-month and a year-on-year decrease of 10.64%. The top three exporting countries are Turkey with 2,770 tons, Russia with 2,700 tons, and Iran with 2,070 tons. After China lifted export controls on graphite electrodes, Iran became one of China’s major exporters of graphite electrodes. From January to December 2023, China’s total graphite electrode exports were 297,100 tons, a year-on-year decrease of 0.68%. The export volume of graphite electrodes for the whole year of 2023 was basically the same as that of 2022.
From the price perspective, China’s graphite electrode market will be overall weak in 2023, and the average price will continue to decline throughout the year. On the one hand, raw material prices have driven down the cost of graphite electrodes, and the year-on-year decrease has increased significantly; on the other hand, steel plant operations and profits have dropped significantly year-on-year, effectively restraining the rise in graphite electrode prices. Declining costs and demand have led to a “slide” in the supply of graphite electrodes, and graphite electrode companies have launched a price war, which has led to a decline in the price of graphite electrodes throughout the year in 2023.
At present, the price of petroleum coke raw materials has increased a few times, while the price of needle coke raw materials has declined. The overall cost of graphite electrodes has increased, which has played a certain supporting role in the stability of graphite electrode prices. The overall operating rate of domestic steel mills has increased, which has certain support for the demand for graphite electrodes. However, downstream companies have certain inventories and their purchasing intentions have not met expectations. They have a wait-and-see attitude and the market demand is weak; mainstream graphite electrode companies maintain their current status. Production and sales rhythm. As costs rise, low-price shipments of graphite electrodes in the market may subside, and graphite electrode prices are expected to rise steadily.
