Graphite electrode refers to a kind of resistant electrode made of petroleum coke and needle coke as raw materials, coal tar pitch as binder, through raw material calcination, crushing and grinding, batching, kneading, molding, roasting, impregnation, graphitization and mechanical processing. High-temperature graphite conductive materials are called artificial graphite electrodes (referred to as graphite electrodes) to distinguish them from natural graphite electrodes prepared from natural graphite.

Since 2022, the prices of needle coke and petroleum coke, the upstream raw materials of graphite electrodes, have been raised several times. As of April 28, the price of low-sulfur petroleum coke has generally increased by 2,700-3,680 yuan/ton compared with the beginning of the year, with a comprehensive increase of about 57.18%. Since last year, affected by the booming negative electrode material market, negative electrode material companies have a greater demand for graphitization processing and graphite crucibles, and some graphite electrode companies have turned to negative electrode graphitization and negative electrode crucibles under the influence of profits, resulting in graphitization and roasting processes in the graphite electrode market OEM resources are tight, and the cost of graphite electrode graphitization increases.

Since October last year, due to the limited production of environmental protection in autumn and winter and the impact of the epidemic, the graphite electrode market has continued to be restricted. As of the end of March, the overall operating rate of the graphite electrode market was about 50%. Under the dual pressure of high cost and weak downstream demand, some small and medium-sized graphite electrode enterprises have insufficient production power. At the same time, in the first quarter, China’s import of needle coke decreased by about 70% year-on-year, and the overall production of graphite electrode market was insufficient.

Graphite electrode material is an important material for electric furnace steelmaking. Graphite used in steelmaking as an electrode material accounts for about 70% to 80% of the total graphite electrode consumption in China. Since electric furnace steelmaking is more environmentally friendly than blast furnace steelmaking, in recent years, the policy has mainly tilted towards electric furnace steelmaking. In 2021, my country’s electric furnace steel accounted for 15% of the total crude steel output, an increase of 5 percentage points compared with 2020. The increase in the proportion of electric furnace steel drives the demand for graphite electrodes. Under the background of carbon neutrality, the proportion of electric furnace steel may increase at an accelerated rate. For more forecasts on the graphite electrode market, please consult us in detail.