Factors Affecting Price of Graphite Electrode

Graphite Electrode Price – Rely On Market Demand & Raw Material Supply

Graphite electrodes are mainly made of petroleum coke, needle coke and coal pitch through calcining, batching, kneading, forming, baking, graphitizing and machining. Graphite electrode is a conductor which releases electric energy in the form of arc in the furnace to heat and melt the charge. The following are the main factors that affect the price fluctuation of graphite electrodes.

1.The Increasing Demand of High-Quality Steel

This is one of the main factors propelling the market growth of graphite electrodes. The rapid development of steel industries such as construction, automobile, infrastructure, aerospace and national defense has led to an increase in steel demand and production.

2.Electric Arc Furnace is the Trend of the Times

Affected by environmental protection and high production flexibility, the steel-making process in developing countries is changing from blast furnace and ladle furnace to electric arc furnace (EAF). Graphite electrodes are the main energy source for electric furnace steel consumption, and as much as 70% graphite electrodes are used in electric arc furnace steel making. The rapid development of electric furnace forces the production capacity of graphite electrode to be increased.

3.Graphite Electrodes are Consumables

The use period of graphite electrode is generally about two weeks. However, the production cycle of graphite electrodes is generally 4–5 months. During this use, the production capacity of graphite electrode is expected to be reduced due to national policies and the heating season.

4.High-Grade Needle Coke Short in Supply

Needle coke is a key raw material for the production of graphite electrodes. It is a calcined petroleum coke (CPC) which accounts for about 70% of the input cost of graphite electrode production. The price increase caused by the limited number of needle coke imports is the main reason for the direct increase in the price of graphite electrodes. Meanwhile, needle coke is also used in the production of electrode materials for lithium batteries and aerospace industries. These changes in supply and demand make the price of graphite electrode is inevitable.

5.Trade Wars Between the World's Major Economies

This have led to a sharp decline in China's steel exports, and forcing other countries to increase production capacity. On the other hand, it has also led to an increase in the export volume of graphite electrodes in China. In addition, the United States raised tariffs on Chinese imports, which greatly reduced the price advantage of Chinese graphite electrodes.