According to a graphite electrode report from China’s IC Carbon, domestic graphite electrode prices are showing a decline from levels at the start of 2018. This decline is also being reflected in the prices to the export market. Through 2017, graphite electrode prices increased up to nine to ten times the prices that were prevalent at the beginning of the same year. Weaker prices are attributed to increased competition in the market both within China and internationally. Prices are expected to continue softening through Q4 2018. Those prices remained high in early 2018 but are declining in Q3 2018 and the same trend is expected in Q4 2018.
According to an HTF report, globally in 2017, ultra-high powered (UHP) graphite electrodes were approximately 38 percent of the total market share while high-powered (HP) graphite electrodes were approximately 20 percent, and the remaining 42 percent of the market used regular power (RP) graphite electrodes. In 2018, HTF estimates that UHP units will make up close to 50 percent of the market with HP usage about 25 percent of the market, and RP the remaining 25 percent.
Due to the expense of the units as well as the cost of power, UHP usage is expected to hit a peak of about 52 percent market share in 2019 then decline yearly until reaching 35 percent in 2022.
Average monthly prices in table below in yuan (RMB) per mt, ex-warehouse, domestic market
|
Graphite Electrode |
2018 UHP 600 |
2017 UHP 600 |
2018 HP450 |
2017 HP450 |
|
Jan |
160,000 |
18,000 |
95,000 |
12,000 |
|
Feb |
135,000 |
20,000 |
90,000 |
13,000 |
|
Mar |
135,000 |
22,000 |
95,000 |
14,000 |
|
Apr |
107,850 |
26,000 |
75,000 |
16,000 |
|
May |
125,000 |
35,000 |
75,000 |
24,000 |
|
June |
127,000 |
85,000 |
80,000 |
48,000 |
|
July |
116,000 |
85,000 |
73,750 |
75,000 |
|
Aug |
113,000 (est) |
160,000 |
68,000 (est) |
90,000 |
|
Sep |
-- |
180,000 |
-- |
110,000 |
|
Oct |
-- |
160,000 |
-- |
110,000 |
|
Nov |
-- |
120,000 |
-- |
60,000 |
|
Dec |
-- |
150,000 |
-- |
80,000 |