The different and structure of HP graphite electrode

Graphite electrode market finally starts to pick up this spring after nearly two sluggish years. Pricesof HP graphite electrode products have been raised across the board, with HP products registering an increase of 3000 yuan/mt and UHP products 5000 yuan/mt.This round of price increase is contributed by multiple factors. Specifically,

★ Prices of refractory raw materials have been soaring,with an increase of over 80% generally.

According toinformation compiled by ICC News, up to now, domestic low-sulphur petroleumcoke prices have increased to 2000 yuan/mt from last November's November; coalpitch prices have risen to 3,300 yuan/mt from last October's less than 2,000yuan/mt. Domestic needle coke prices have now risen to 5,800 yuan/mt from theprevious 3,200 yuan/mt as well. The increase in cost in real terms is a factbeyond doubt.

★ Supply and demandwas out of balance at the previous stage.

Amid prolongedrecession of domestic steel market in recent years, UHP graphite electrode industryalso went through a downturn phase in which the industry saw businesses furtherconcentrate, the superior become proper and the inferior fall. Some enterpriseswith less competitive strength were eventually eliminated. Bankruptcy andbusiness reorganization frequently took place in the industry. This also suggestsa decline in graphite electrode production capacity. The graphite electrodemarket has shifted from severe overcapacity at one point to reaching basicbalance between supply and demand. In 2016, Shanxi, Hebei, Henan and otherregions were made priorities in government inspections on environmentalprotection accountability. High power graphite electrode manufacturing enterprises wereforced to suspend production, which led to marked drop in market supply. Thesupply gap thereby emerges.

★ Efforts on environmental protection areintensifying.

Starting January 1,2018, pollution discharge fees will be replaced by green taxes, which willtriple the cost of waste discharge for enterprises. China's EAF steelpercentage is expected to rise, which will boost demand for HP graphite electrodes.
Article Source: HP Graphite electrode
Company name: Wanhao Refractory
Email:sales100@wanhaorefractory.com
Website:http://www.wanhaorefractory.com/
HP Graphite Electrode

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