China's graphite electrode market trend in the second half of 2018

As of the end of June 2018, China's graphite electrode production capacity is about 1.5 million tons / year, of which effective capacity of 1.234 million tons / year. From January to June 2018, the total output of graphite electrodes in China was 310,400 tons (up 19.11% over the same period of last year), including 74,200 tons of ordinary graphite electrodes (up 23.47% over the same period of last year) and 86,000 tons of high power (up 3.28 compared with the same period of last year). %), the super high is 150,100 tons (up 28.13% over the same period last year).

Since the price of graphite electrode has risen in the second quarter of 2017, although the price has dropped before, the graphite electrode has always had a high profit margin. Therefore, the graphite electrode enterprise is doing its full capacity production, and the monthly supply is increasing. In the first half of 2018, the operating rate of electric furnace steel showed a turbulent trend. In the following six months, the country's demand for steel market will increase, which will help the operating rate of electric furnace steel.

The guiding role of national policies on electric furnace steel. Xinhua News Agency reported on July 25 that Luo Tiejun, inspector of the Raw Materials Division of the Ministry of Industry and Information Technology, said at the expansion meeting of the executive director of the China Iron and Steel Association that promoting the conversion of "long process" steelmaking to "short process" will further reduce the steel industry. The impact on the atmospheric environment. The state will study relevant policies and measures to support the development of electric furnace steel, and effectively improve the market competitiveness of electric furnace enterprises.

The outward transfer of steel production capacity in the Beijing-Tianjin-Hebei region may become an important source of short-process steelmaking capacity indicators. "Luo Tiejun said, "We will work with relevant departments such as the Development and Reform Commission to encourage and guide the transfer of production capacity to meet the needs of the development of electric furnace steel outside the region. ”

“South China, Southwest China, Northwest China and other regions with large capacity, abundant scrap resources and sufficient power supply have the advantage of developing electric furnace steel. We will guide the relevant regions to strengthen communication and convergence on the basis of strict implementation of capacity replacement policy, and actively undertake from The production capacity of Beijing-Tianjin-Hebei and surrounding areas will be rationally planned to develop electric furnace steel."

The national policy on the advancement of electric furnace steel will be conducive to the development of electric furnace steel, which will also drive the development of the graphite electrode industry. In the fourth quarter of 2018, during the heating season, Hebei, Henan and Shandong provinces will face the problem of limited production. At that time, the output will be reduced. In addition, the state's investment in infrastructure and the guiding policy for electric furnace steel, we believe that the fourth quarter graphite electrode Resources may tighten and prices will rise slightly.

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