Uhp graphite electrode market and electrode market size
By:Win Sep 22, 2020
The UHP graphite electrode market stocks are relatively high, especially the ultra-high electrode 600mm, which is mainly affected by the epidemic in 2020.
Uhp graphite electrode market
1) Large production capacity and high inventory.
The high market inventory is mainly due to the influence of market factors in 2019. The Middle East countries need to strongly lead to excessive production. Coupled with the impact of the epidemic in 2020, the domestic electric furnace steel market and export market demand have weakened, resulting in a rapid decline in prices.
2) The price is low, below the cost line.
Calculated with coal tar pitch 2270 yuan/ton and processing fee 12,000 yuan/ton, oil-based needle coke costs about 18,000 yuan/ton at 6000 yuan/ton, and coal-based needle coke costs about 5,000 yuan/ton. 17,600 yuan/ton. At present, the price of some ultra-high 600mm graphite electrodes in China is already lower than this cost line.
3) Favorable policies to build a national electric furnace steelmaking base.
In recent years, the country has increased the development of the electric furnace steel industry. During the National Two Sessions in 2020, electric furnace steel will be mentioned again. Use scrap steel as a resource to replace iron ore to build a national electric furnace steelmaking base. Therefore, from a long-term perspective, the good development of the electric furnace steel market will certainly drive the graphite electrode market to rebound again.
Electrode market size
Asia-Pacific region dominated the global market share. China occupies the largest share in terms of consumption and production capacity of graphite electrodes in the global scenario.
The new policy mandates in Beijing and other major provinces in the country force the steel producers to close a capacity of 1.25 million tons of steel produced through environmentally harmful route in order to produce a new capacity of 1 million ton of steel. Such policies have supported the shift of manufacturers from conventional methods of steel production to the EAF method.
The growing production of motor vehicles, along with the expanding residential construction industry, is expected to support the domestic demand for non-ferrous alloys and iron and steel, which is a positive factor for the growth of the graphite electrode demand in the coming years.
The current production capacity of UHP graphite electrodes in China is around 500 thousand metric ton per year. From January to May 2020, the output of UHP electrodes is 166,000 tons.
All the above-mentioned factors, in turn, are expected to increase the demand for graphite electrode in the region during the forecast period.
The graphite electrode market is highly consolidated in nature. In terms of market share, few of the major players currently dominate the market. Key players in the graphite electrode market include Fangda Carbon New Material Technology Co. Ltd, Dan Carbon Group, GrafTech International, Graphite India Limited, Jilin Carbon Co. Ltd, and SHOWA DENKO K.K., among others.