In the new quarter, which began in July 2018, contract prices for graphite electrodes in India rose 75,000 to 80,000 rupees ($1000-1100 per tonne) compared with the previous quarter. According to market news, the mainstream price of 450mm ordinary power graphite electrode is 975000 rupees (14171 US dollars / ton). The price of 600mm ultra-high power electrode is 995000 rupees (14465 US dollars / ton).
The increase in India ' s graphite electrode prices is due to the limited supply of needle coke for key raw materials . Needle coke prices have grown by more than 45 % year - on - year . Current India ' s needle coke import prices are between US $ 3,000 and $ 3,200 / ton . In the late period , growth rates are expected to rise further due to the potential for new contracts to bring pressure to corporate profits .
Conco philips, one of the world's largest producers of acicular coke, is addressing capacity bottlenecks, increasing production by about 50,000 to 60,000 tonnes and is expected to start production in the second half of 2018, which will help ease pressure on raw materials in the short term. However, although this helps to stabilize the price of raw materials, since 15% of the needle coke is used in the production of lithium ion batteries, the needle coke is still an important factor to be concerned about.
Global graphite electrode prices continue to rise, especially against the backdrop of supply-side reforms in China in the second half of 2017 and an increase in the proportion of EAF steelmaking. The soaring global price of graphite electrodes has benefited electrode manufacturers around the world and India, such as heg limited and (graphite india), the Indian graphite company.
Chinese steel exports have also continued to decline this year as China compresses steel production and closes inefficient induction furnaces and blast furnaces. The decline in China's steel exports is expected to boost production of EAF steel elsewhere, leading to increased global demand for graphite electrodes and higher prices.
China's high barriers to entry and supply-side reforms, an increase in the proportion of EAF steel and a four-year lag in investment in new graphite electrode capacity will all support global and Indian graphite manufacturers in cash flow in the medium term.