Through the market feedback, on Monday (7th Sep, 2020), some graphite electrode manufacturers began to increase product prices, while other manufacturers seemed relatively indifferent. However, since Thursday, market prices have generally risen.

In terms of raw materials, the price of petroleum coke has been recently risen, and the current price has increased by 200 yuan/ton from August. The main reason for the increase is that the concentration of downstream demand began to be released, and with the maintenance of raw material suppliers, there is still an upward trend in the later period.

Due to cost reasons, the initial average capacity utilization rate of domestic graphite electrode companies is about 50%. Since August, the output of the top and middle scale graphite electrode manufacturers has increased to a certain extent due to the good overall digestion of inventories.

In the fourth quarter, China will build 5-6 electric furnaces over 100 tons, and the market is expected to remain active.

In the early days, the offline production of graphite electrode manufacturers was at a loss, but the recent raw material market has promoted the development of the graphite electrode market to a certain extent. Whether market prices can continue to rise in the future depends on downstream demand and exports.