ICC News: Needle coke market performed steadily before it moved upwards in June. Prices were on the upswing promped by maintenance schedules of some needle coke plants. In June, the recovery and improvement of graphite electrode operating ratio in the downstream continued to create favorable conditions for the raw material market. It is forecasted that needle coke price could exceed 30,000 yuan in July.
On the petroleum needle coke side, Jinzhou Petrochemical raised price twice, which was in mid-June and late June, respectively. In view of surge in orders and limited supply, they used price rise as important means to regulate shipment. It shipped 10kt needle coke to graphite electrode market in Q2. Shandong Yida was upgrading desulphurisation equipment this month. The work was basically completed by the end of this month. It is gradually bringing production lines to track and the plant is expected to return to normal by mid-July, according to the person in charge. The company's shipment of needle coke for graphite electrode was 18kt while that for anode material market was 8kt in Q2.
Right now, needle coke prices are 26,000 yuan/ton and raw material prices are 14,000 yuan/ton. Shandong Jingyang has made significant improvement in product granularity after equipment overhaul. Right now, its products contain over 20 percent of 12mm grains. Product quality is consistent and well controlled. Jilin Carbon, Fangda, Kaifeng Carbon and other downstream users that visited the company in June all have given very high marks for its product performance; market prices are at 25,000-26,000 yuan/ton, according to the person in charge. On the coal needle coke side, production at Anshan Kaifeng Carbon was stable in June, with monthly output at 3,300 tons. Products are all for in-house production of electrode. The company's production lines are scheduled for an overhaul this August, according to the person in charge.
Baosteel Chemical wasn running steady in June. It also adjusted price twice this month. As of late June, price of calcined needle coke is 18,500 yuan/ton. Meanwhile, according to sources, ancillary works for its new 50kt/a needle coke project would be carried out in July which is expected to last ten days and impact a third of the company's production. Baosteel Chemical's shipments to graphite electrode market was 10 kt and that for anode material market was 5kt. Baotailong New Materials's production was stable in June, with monthly output at 3,000 tons. The company's needle coke production lines were in suspension all the time as they were set up rather early. It didn't start trial production till last Q4, after which, small defects were constantly discovered and production wasn't smooth. Production is estimated to become steady since late July. Right now, its supply for anode material market is stable, and products for downstream anode market are on a trial basis and in small quantities. As of late June, prevailing prices are 23,000 yuan/ton. Production at Fangda C-Chem (Jiangsu) was on hold due to the restrictions on the sourcing of raw materials as part of environmental protection efforts. When to resume production has yet been decided. Looking forward, with needle coke inventory hitting a stage at the bottom due to maintenance schedules, some market could move upward. Meanwhile, downstream sectors are likely to reach a short peak to replenish goods although after some time, the market will be more likely to return stable.
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