ICCSINO: The needle coke market remained stable this month, with low overall operating rates among producers. While demand from downstream anode material manufacturers was subdued, graphite electrode producers maintained rigid demand-based purchases. Short-term supply of calcined needle coke was tight, and operating enterprises saw good shipments. Hengyuan Carbon's needle coke plant resumed operations at the end of the month, and a new needle coke plant is set to commence production in Yantai, Shandong, in September. Overall, needle coke market prices remained relatively unchanged. Specifically, coal-based needle coke ranged from RMB 7,500 to 8,500/ton, while oil-based needle coke's mainstream prices were RMB 5,800 to 8,200/ton. Raw coke prices for both coal and oil-based types were RMB 5,050 to 5,600/ton. In the import/export market, Japanese coal-based needle coke was priced at US 950/ton,Korean coal−based at US850/ton; oil-based from Japan ranged from US1,100to1,300/ton,while UK calcined coke prices were US1,050 to 1,250/ton, and anode-grade coke was US$650 to 800/ton.
In terms of raw materials, coal pitch prices fell initially before rising this month, influenced by fluctuations in coal tar prices and the onset of the maintenance season for coal tar processing enterprises, leading to low coal pitch supply. The rebound in coal tar prices towards the end of the month drove coal pitch prices up, with refined coal pitch trading at RMB 4,250 to 4,350/ton and medium-temperature pitch at RMB 4,300 to 4,400/ton. Demand-wise, pre-baked anode enterprises operated stably with rigid demand, showing reluctance towards high-priced raw materials. The sluggish demand from the needle coke and graphite electrode markets provided weak support. Given the low supply of coal pitch, there is still potential for price hikes. Low-sulfur oil slurry prices remained stable, trading at RMB 4,100 to 4,180/ton at the end of the month. Supply was stable, but low operating rates among needle coke enterprises limited demand pull, keeping low-sulfur oil slurry in a consolidation phase with persistent cost pressures for needle coke producers.
Downstream, the graphite electrode market maintained a weak but stable performance, with mainstream UHP600 prices at RMB 17,000 to 18,000/ton. With many electric arc furnace steel producers resuming operations in mid-September, graphite electrode demand is expected to grow. Most active graphite electrode manufacturers were in the raw material stockpiling stage this month and into September, actively procuring and providing some support to calcined needle coke prices. The anode sector saw an overall decline in operating rates this month, but end-user demand remained stable. Overall production of anode is projected to increase slightly next month, with raw material and finished product inventories being depleted. It is anticipated that raw material replenishment activities will commence towards the end of September.
In conclusion, the needle coke market was generally stable this month, with rigid demand from anode material producers and relatively good demand from graphite electrode factories. With low needle coke supply, the resumption of production at some needle coke enterprises and the commissioning of new capacity in September, coupled with a new round of downstream restocking expected in late September, needle coke prices are anticipated to remain stable with the potential for modest increases in the short term.
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