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Why ultra-high-performance graphite electrodes prices soared?

Shortages last year of the ultra-high-performance graphite electrodes used by EAF-based steelmakers and some non-ferrous metal producers rapidly pushed up their price.

Because the market for steel was so bad for a couple of years, steelmakers reduced their inventories of graphite electrodes and the supply chain was empty. And the electrode shortage was exacerbated by “very limited” supplies of needle coke. According to some reports, certain needle coke production in China has been reduced as part of a national policy to limit air pollution.

When the steel industry awoke to a shortage of UHP graphite electrodes, and their prices shot up while steelmakers scrambled to secure supplies. Some steel production was curtailed as steel producers sought to conserve dwindling electrode stocks.

This is a challenging time for graphite electrode producers. Rongsheng Kiln Refractory will make an all-out effort.

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