Monthly report: Needle coke market performs well overall in November

ICC News: Needle coke market overall was doing well in November. Prices at major enterprises went up 3-8 percent broadly in the first half of the month. As of November 30, the prices of domestic raw needle coke were 13,500-16,500 yuan/MT and calcined needle coke 28,000-34,000 yuan/MT. The contract prices of imported needle coke for graphite electrode were 29,000-31,000 yuan/MT whereas spot prices are 33,500-34,500 yuan/MT. The spot prices of imported needle coke for anode materials were 17,000-18,000 yuan/MT and contract prices were 10,000-15,000 yuan/MT. In Hongte Chemical, after production line upgrading and optimization, product quality has improved substantively. Right now, it produces roughly 8,000T calcined needle coke each month and supply as much as 4,000T to the market, the person in charge said. Fangda C-Chem (Jiangsu) started preparation for needle coke production in late November after the line was suspended for seven long months. It is expected the production will be fully resumed in December. Baowu Carbon Materials halted needle coke line to conduct maintenance in November and it is expected to resume operation in December. The specific start date will depend on the progress in maintenance. Right now, it carries roughly 1,000T needle coke in inventory. The plant's output in 2018 totals 42,000T, the person in charge said. Shandong Yida's petroleum needle coke calcining facilities officially started operation in late November. As per sources, products will be available for customers in mid-December. Shandong Jingyang started to build another 70KT/Y needle coke production line in 2018, which is expected put its total capacity at 150KT/Y by the fourth quarter of 2019. Jinzhou Petrochemical has once again lifted price by 3 percent to 34,000 yuan/MT in order to keep supply steady when it starts maintenance in the first half of next year. Anshan Kaifeng Carbon's needle coke production line project was completed in Mid-November. The upgrading will increase its calcining capacity by 40-50 percent. Meanwhile, on the demand side, with the end-market of steel showing downward trend and smelters having expectation of reducing production, demand for electrode is expected to fall as well. In the case of independent electric arc furnace (100% scrap charge), rebar cost is 3,640 yuan/ton, up 110 yuan/ton from the previous trading day; gross profit per ton of steel is 160 yuan, down 90 yuan from the previous trading day, according to ICC analysis. In view of the lack of support of rigid demand, domestic needle coke is estimated to largely hold steady along with sporadic adjustments.