Monthly report: Needle coke market maintains upward trend in July, prices head toward stabilization

ICC News: Needle coke market continued uptrend in July. The prices kept rising steadily earlier in the month amid tight supply. After a string of across-the-board raises, the rise of price started to slow toward the end of the month. Downstream carbon enterprises' profits and sales are at a modest level due to persistent high costs and customers' push for lower prices. As of late July, prices of needle coke for graphite electrode are 25,000-32,000 yuan/ton and imported needle coke are 3,900-4,200 USD/ton. According to industry people, the supply of needle coke is tight right now and downstream GE sector's needle coke purchases are on the rise although  GE prices are falling. Meanwhile, with two major coal-based needle coke producers remaining in maintenance and production suspension state, ICC News forecast needle coke market will maintain a steady uptrend in the short run. Specifically, Jinzhou Petrochemical's needle coke prices continue to rise this week, with calcined coke prices quoted at 32,000 yuan/ton, up 4,000 yuan/ton. Last month, 30 percent of the produciton was affected by a ten-day overhaul caused by a breakdown of production line; this month, the production has returned to normal; right now, its orders from GE sector have lined up till September; meanwhile, due to a relatively high level of sulphur content of its Russian crude oil, it has directly caused quality variations in needle coke products in recent time, according to the person in charge. Baotaing also made needle coke price adjustment as well earlier in the month. Right now, quoting prices of raw needle coke are 15,000 yuan/ton, calcined coke 25,000 yuan/ton.This month, it suspended production for maintenance and was selling stocks. Shandong Yida started to fully resume production early this month. It started to make deliveries in mid-July. Prevailing prices of calcined needle coke are 26,000 yuan/ton and that of pre-calcined coke are 14,000 yuan/ton this month. The company's total needle coke exports will reach 12,000 tons this year, according to the person in charge. Baosteel Chemical's production basically was steady this month. A lapping construction of its 50kt/a needle coke project in July for an estimated ten days will affect one third of its production. Hence, in order to balance the overall deliveries in July, it raised needle coke prices by 1,500 yuan/ton to reach 28,500 yuan/ton. On the import front, Philips 66 started to raise needle coke prices from July 1, with HSP needle coke quoted 3,700 USD/ton, HNP needle coke 3,400 USD/ton, calined coke for anode materials 2,000 USD/ton and raw coke 1,500 USD/ton. South Korea PMC's needle coke has been fully booked for the entire year of 2018. Fueled by the tight supply in China, it has decided to raise needle coke price in late July, with calined coke price rising 15 percent to reach 4,000 USD/ton. In July, C-Chem's raw needle coke price was18,000 yuan/ton and the volume of exports was limited. Right now, import price for Japan Petrocokes's petroleum-based needle coke is at 4,300 USD/ton and the export volume is quite limited. 
On the downstream graphite electrode market, the demand for needle coke has increased substantially since June with new graphite electrode capacities gradually coming on stream and the approaching of busy season for production. Meanwhile, graphite electrode enterprises with hefty profits also are able to afford higher needle coke prices. On the lithium battery anode material market, with higher requirement on anode material quality by battery makers, the use of needle coke in anode material production has seen explosive growth. Although the peak season of anode materials has not arrived and overall market demand is yet to pick up fully, needle coke producers have already posted remarkable sales on the anode material market. Hence, the sales of needle coke on the anode material market would be something to look forward to around August when anode materials market fully enters the peak season.