The more scenery standing on the top of the mountain is, the more desperate fall into the valley is. This phrase can be used to describe the graphite electrode plate.

The third quarter is undoubtedly the darkest moment for graphite electrode players. According to statistics, the output of graphite electrode in the third quarter was only 182,000 tons, down by 24% from the previous quarter and 30% year on year. The average operating rate of the industry was only a little more than 50%.

With the industry running at a dismal rate, it’s hard to imagine how players will survive. The gross profit of graphite electrode industry is -1700 yuan/ton, the loss continues to expand compared to the last quarter. Take Fang Da Carbon (600516), the leading company in the industry, for example, the net profit of the company fell by 47% in the first three quarters, so it really had to tighten its belt to live.

Only recently has the graphite electrode, like a beaten giant, begun to wake up, a more obvious sign of its six-day rise.

First on the news, the European Commission recently announced that it has decided to end its anti-subsidy investigation into graphite electrode systems originated in China. Secondly, after entering the fourth quarter, taking October as an example, the operating rate of the industry has risen quarter-on-quarter, and the loss has narrowed by 334 yuan/ton quarter-on-quarter.

For more information please contact our company, kindly thanks.