Graphite electrode market status
From 2009 to 2016, the carbon market has been in a long-term downturn, the output of graphite electrodes has been declining year by year, and corporate losses have been severe.
The contraction of production capacity in 2017, the increase in raw material market prices, stricter environmental protection, and low operating rates led to a shortage of graphite electrodes, and prices began to soar.
Foreign markets for graphite electrodes
At the same time as the domestic price of graphite electrodes skyrocketed in 2017, the export volume of graphite electrodes in China also increased by 50% to 273,300 tons, the highest growth rate since 2001, indicating strong demand for graphite electrodes overseas.
Graphite electrode capacity analysis
In 2017, the global graphite electrode production capacity was 1.7 million tons, and the capacity utilization rate was only 67.73%.
86%。 Overseas graphite electrode production capacity is 780,000 tons, the utilization rate is 71. 86%.
The domestic graphite electrode production capacity is 920,000 tons, and the utilization rate is only 64. 23%. The output of ultra-high power graphite electrodes accounts for only 32. 56%, and demand exceeds supply.
New demand analysis of graphite electrodes
Factors such as the replacement and elimination of steel-making capacity and the production of new electric arc furnaces have driven the graphite electrode market.
It is expected that the global demand for graphite electrodes will be 9.27, 14.19 and 49,200 tons in 2018, 2019 and 2020, for a total of 238,800 tons.
Summary: In the case that the production capacity of graphite electrodes is difficult to release, reducing the export volume of graphite electrodes can partially meet the domestic market demand for graphite electrodes in the future.