China: UHP graphite electrode prices to rise further in Apr'26

• High raw material costs to keep UHP graphite electrode prices firm
  
  
• Seasonal EAF steel demand to support electrode procurement and prices
  
  

Mysteel Global: Chinese prices for ultra-high-power (UHP) graphite electrodes are expected to continue to track upward in April, primarily driven by firm prices of raw materials, Mysteel's recent report on the market predicts. The further recovery in the electrode demand will also underpin the prices to some extent, per the report.

In East China's Jiangsu province, the price of 350mm diameter UHP graphite electrodes averaged Yuan 15,720/tonne ($2,293/t) during March, higher by 2.1% from the average price of February, while that for 600mm diameter electrodes also increased by 1.5% on month to reach Yuan 17,020/t, both including the 13% VAT, according to Mysteel's assessments.

The prices climbed higher entering this month. Mysteel assessed the price of 350mm and 600mm UHP electrodes at Yuan 15,900/t and Yuan 17,200/t, respectively, as of April 7.

Global trade disruptions caused by the Middle East tensions since late February have buoyed crude oil prices worldwide, elevating the costs of raw materials for graphite electrode production such as petroleum coke and coal tar pitch, Mysteel's survey showed.

For example, by April 7 the price of 1# sponge coke offered by Daqing Petrochemical, a branch of China's National Petroleum Corporation in Northeast China's Daqing region, had increased by 4.8% on month to touch a one-year high of Yuan 4,830/t, according to Mysteel's tracking.

"Although the Middle East tensions have shown signs of easing, maritime logistics are unlikely to return to normal in the short term," a market source in Shanghai said. "As such, prices of oil and its by-products are expected to hold high in the coming month," he added.

This means the cost support for UHP graphite electrodes will likely stay firm in April, Mysteel Global noted.

On the other hand, Chinese electric-arc-furnace (EAF) steelmakers are expected to accelerate their procurement of electrodes to meet their growing production needs this month, as domestic steel consumption rises in the traditional peak season in spring, Mysteel's report suggests.

However, the ongoing conflict in the Middle East - a key export market for Chinese graphite electrodes will continue to depress overseas electrode demand in the near term, the report cautions.

During January-February, China exported a total of 53,621 tonnes of graphite electrodes, higher by 7.3% compared with the same period last year, according to the statistics of the country's General Administration of Customs.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.