Market Overview
This week (January 5-12, 2024), the Chinese electrode paste market experienced a weak decline in prices. The average market price for electrode paste was 4750 yuan per ton, down by 80 yuan/ton compared to the same period last week, representing a decrease of 1.66%. The decline in raw material coal tar pitch prices this week weakened cost support. Some electrode paste enterprises adjusted prices downward, stabilizing market transactions for the week, with businesses primarily relying on orders from existing clients.
Supply: Mainstream production in the Chinese electrode paste industry remained generally stable this week.
Demand: This week, the domestic silicon carbide market continued to exhibit a downward trend. The overall industry operating rate was approximately 72.26%, a 1.02% increase from the previous week. The production in Shizuishan, Ningxia, increased, and there was one furnace in Zhongwei that resumed production. Wuhai experienced occasional power outages, while Ulanqab and Sichuan saw reduced production.
Raw Materials: This week, the reference price for calcined low-sulfur coke in the market was around 1900 yuan/ton, remaining unchanged from the previous week; the reference price for electrically calcined anthracite was around 3350 yuan/ton, also unchanged from the previous week. The reference price for medium-temperature asphalt was around 4500 yuan/ton (Northwest China), contributing to the weakened support for electrode paste raw material prices.
Future Forecast
On the raw material front, with no clear support from supply and demand, it is expected that the transaction price of coal tar pitch will continue to decline. The calcined coke market, influenced by raw materials, has a stronger willingness to push prices up, but downstream demand is average. The acceptance of price increases for calcined coke is limited. Enterprises are operating normally, and with many existing orders, it is expected that the price of electrically calcined anthracite will stabilize next week. Overall, the cost-side price support is moderate.
On the supply and demand side, mainstream electrode paste enterprises are operating normally and steadily. The trend in the silicon carbide market is downward next week, but the operating rate is acceptable. The ferroalloy market is mainly consolidating. Therefore, the supply side is relatively stable, and the demand side is performing averagely.
In summary, the coal tar pitch market is running weakly, with average performance in downstream demand. Electrode paste enterprises are mainly stabilizing prices, and it is expected that the electrode paste market will experience stable prices next week.
