China: UHP graphite electrode prices to soften in Jun'26

• Weak cost support pressures prices
  
  
• Steel demand and exports decline
  
  

Mysteel Global: After rising steadily since the end of February, Chinese prices for ultra-high-power (UHP) graphite electrodes began softening in late May due to weakening cost support, notes Mysteel's recent report on the market. Prices are expected to slide further in June, it predicts.

In East China's Jiangsu province, last month the price of 350mm diameter UHP graphite electrodes averaged Yuan 16,467/tonne ($2,432/t), up 3.5% from the average price of April, while that of 600mm diameter electrodes had also increased 3.1% on month in May to Yuan 17,756/t, both including the 13% VAT, according to Mysteel's assessment.

Entering this month, the prices of 350mm and 600mm UHP electrodes have both lost ground, sliding to Yuan 16,200/t and Yuan 17,200/t respectively by June 3, Mysteel assessed.

Chinese prices for petroleum coke - a major raw material for UHP graphite electrode production - fell rapidly late last month under the impact of the declining global energy prices, which eased the cost pressure incurred by domestic electrode manufacturers, Mysteel Global learned.

By the end of May, for example, 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 dropped to Yuan 4,400/t, a five-month low and where it has remained so far this month, according to Mysteel's tracking.

The weaker cost support is expected to continue to drag on prices of graphite electrodes this month, Mysteel's report suggests.

On the other hand, the decline in demand for UHP electrodes from both domestic steelmakers and overseas customers will also weigh on the prices, as reported.

The approaching summer lull in Chinese steel consumption will likely press domestic steel mills to slow their procurement of raw materials, while the ongoing conflict in the Middle East - a key export market for Chinese graphite electrodes - will continue to impede the country's exports, the report pointed out.

In April, China exported a total of 25,344 tonnes of UHP graphite electrodes, lower by a large 30.8% compared with the same month last year, according to statistics from 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.