As we know that the primary raw material for small-size graphite electrodes is petroleum coke, whose market price has been rising recently, significantly increasing production costs.
In response to this pressure, some electrode manufacturers with low inventory levels have adjusted their sales strategies, abandoning low-price sales. As a result, the prices of graphite electrodes under 500mm have shown an upward trend, with increases ranging from RMB 100 to 500 per ton.
Additionally, the production of small-size graphite electrodes is concentrated in Hebei, Henan, Shanxi, and Shandong provinces. Recent environmental policies in these areas have led to reduced or halted production at some facilities, further tightening market supply.
In contrast, the situation for large-size ultra-high power (UHP) graphite electrodes is different:
The main raw material for large-size graphite electrodes is needle coke, whose prices have remained relatively stable recently. Consequently, the prices of UHP electrodes above 500mm have also stayed steady, supported by a balanced market supply and demand.
Over the past two years, price increases in the graphite electrode market have been closely tied to rising raw material costs or reduced supply. These cost- or supply-driven increases are logical and within market expectations. Demand-side factors have rarely driven price hikes, making it difficult for graphite electrode prices to see substantial increases based solely on cost pressures.
For significant price surges to occur, both supply and demand must shift simultaneously, creating a mismatch. However, such scenarios have been rare in recent years, resulting in relatively limited price fluctuations in the graphite electrode market.
