Monthly Review: July Needle Coke Market Cools Down with Minor Price Adjustments

ICCSINO Summary: The needle coke market saw an overall slowdown in transactions this month, accompanied by volatile operational rates across the industry. Some factories adjusted production lines, while others scheduled short-term maintenance for next month, pointing to a decrease in overall supply in August. Order demand weakened, with the first half dominated by fulfilling earlier orders and fewer new orders in the second half. To boost sales, some producers offered discounts, resulting in a 100-200 yuan/ton decline in raw coke prices. Specifically, coal-based needle coke ranged from 7,500 to 8,500 yuan/ton, oil-based from 5,800 to 8,200 yuan/ton, and raw coke from 5,050 to 5,600 yuan/ton. In the import-export market, Japanese coal-based needle coke was priced at $950/ton,$The price of coal-based needle coke in Korea is US850/ton;fo roil−based needle coke,Japan is priced at US1,100-1,300/ton. As for calcined coke in the UK, due to the poor performance of its domestic downstream market, the price of calcined coke fell slightly by about 4% this month, with the price of needle coke ranging from US1,050toUS1,250/ton, and the price of coke for anode ranging from US650-US800/ton.

Raw Materials: Coal pitch prices fluctuated, rising initially then falling, ending July at 4,250-4,450 yuan/ton for modified pitch and 4,400-4,500 yuan/ton for medium-temperature pitch. Weak downstream demand and abundant supply due to high operating rates at coal tar processing plants weighed on prices. Downstream, pre-baked anode demand remained subdued, and both coal-based needle coke and graphite electrode production stayed low. A bearish sentiment drove coal pitch prices down. Low-sulfur oil slurry prices also experienced an initial rise followed by a decline, ending the month at 4,100-4,200 yuan/ton, influenced by refinery supply dynamics. With anticipated further declines in needle coke production in August, low-sulfur oil slurry demand remains low, forecasting a potential price drop.

Downstream Markets: The graphite electrode market remained weak, with UHP600 priced at 17,000-18,000 yuan/ton. The steel market was in a hot season lull, electric arc furnace steel production fell, and the graphite electrode industry struggled with losses. Raw material replenishment continued at a rigid pace. For anode materials, overall operating rates declined, especially among SMEs, while orders for needle coke decreased significantly by late July, signaling potential reduced enthusiasm for purchases in August.

In conclusion, July marked a turning point for the needle coke market, with reduced production, increased shipping difficulties, and weaker downstream demand. August is expected to see a balance of weak supply and demand, with potential price adjustments.