Last week (June 28, 2024 – July 5, 2024), the prices in China’s electrode paste market remained stable. As of July 5, the average market price for electrode paste was 4700 yuan/ton, unchanged from last week, with transaction prices ranging between 4100-5100 yuan/ton. Last week, the price of raw material coal tar pitch increased again, maintaining cost pressure on electrode paste production. The downstream market performance was poor, which suppressed electrode paste prices. Electrode paste manufacturers showed little willingness to lower prices, with most continuing to fulfill orders for old customers. The market trading was stable, with most enterprises producing based on sales orders and maintaining low inventory levels. Actual transaction prices varied.
Supply Side:
This week, the mainstream operating rate of China’s electrode paste industry has slightly decreased. In the Northwest region, many enterprises are operating normally. Major factories are deeply tied to large downstream enterprises, with production primarily based on orders, which remain relatively stable. A few enterprises are running at full capacity with no significant changes in supply volume.
Demand Side:
This week, the domestic calcium carbide market continued to decline, with an average market price of approximately 2838 yuan/ton. The industry’s overall operating rate is about 68.42%, an increase of 2.64% compared to last week. In Inner Mongolia, enterprises are operating normally without power restrictions. Although some small factories in Ningxia have shut down due to high costs, the overall impact on operations is minimal. Additionally, the overall loss in the calcium carbide industry has intensified this week.
Raw Materials:
This week, the reference price for medium-sulfur calcined coke is 2000 yuan/ton (sulfur <3.0%), unchanged from last week. The reference price for medium-sulfur calcined coke with sulfur <3.5% is 1830 yuan/ton, down 20 yuan/ton from last week. The reference price for electrically calcined anthracite is 3300 yuan/ton, unchanged from last week. The reference price for medium-temperature pitch in the Northwest region is 4300 yuan/ton, up 250 yuan/ton from last week. The reference price for residual anode is 2407 yuan/ton. The cost of electrode paste raw materials has shown mixed changes.
Profit Margin:
This week, electrode paste enterprises mostly maintained orders from old customers, with slight fluctuations in cost prices. The prices for most electrode paste enterprises remained stable, with some order prices decreasing slightly. Overall, the profit margin in the electrode paste industry has not changed significantly.
Inventory:
This week, the inventory level in the electrode paste industry has decreased. Due to the volatile market, most enterprises keep their inventories at mid to low levels, with some enterprises producing based on sales orders and maintaining low inventory levels.
Market Outlook:
Raw Materials: Next week, the coal tar pitch market is expected to adjust slightly downward. The prices for medium to high sulfur calcined coke are expected to remain stable, with a slight possibility of further decline. The price for electrically calcined anthracite is expected to remain stable. Overall, the price trend for electrode paste raw materials is weak.
Supply and Demand: The operating rates for mainstream electrode paste enterprises are not expected to change significantly, while the downstream calcium carbide market continues to weaken. Therefore, the supply side remains normal, and the demand side support is moderate, with enterprises primarily fulfilling orders from old customers.
Conclusion: In summary, with downstream price suppression and insufficient favorable support, the electrode paste market price is expected to remain weak and stable, with transaction prices likely ranging between 4100-5100 yuan/ton.
