ICCSINO: This month, the needle coke market operated stably. Changes occurred in the downstream demand structure, with graphite electrode demand dominating, while anode material procurement was cautious, merely maintaining rigid demand. There were also changes in needle coke supply. In-production needle coke enterprises mainly produced electrode coke, and green coke was produced according to orders. Some needle coke manufacturers began shutdowns for maintenance this month, while others switched production to petroleum coke. In the middle of next month, new needle coke capacity will be officially commissioned. Overall, needle coke supply is expected to remain largely unchanged next month. However, some needle coke manufacturers currently have inventory of green coke, facing significant sales pressure. At the end of the month, individual needle coke enterprises adjusted their green coke prices, while calcined coke prices remained stable. This month, oil prices continued to decline, and needle coke by-product prices fell. Coupled with the reduction of oil product consumption tax subsidies in Shandong Province, needle coke costs rose. Overall, needle coke prices remained stable. Specifically, coal-based needle coke prices ranged from 7,500 to 8,500 yuan per ton, and oil-based needle coke mainstream prices were 5,800 to 8,400 yuan per ton. Coal-based and oil-based green coke prices were 5,050 to 5,600 yuan per ton. In the import and export market, Japanese coal-based needle coke prices were 950 USD per ton, and Korean coal-based needle coke prices were 850 USD per ton. For oil-based needle coke, Japanese prices were 1,100 to 1,300 USD per ton, and British calcined coke prices were 1,050 to 1,250 USD per ton. Anode coke prices were 650 to 800 USD per ton.
In terms of raw materials, coal tar pitch prices stabilized first and then declined this month. Initially, coal tar pitch prices strengthened due to rising raw material prices. However, mid-month, downstream demand for coal tar pitch weakened, and raw material prices began to decline overall, providing insufficient support for coal tar pitch. At the end of the month, coal tar pitch prices fell. As of the end of the month, modified coal tar pitch prices were 4,200 to 4,400 yuan per ton, medium-temperature coal tar pitch prices were 4,300 to 4,350 yuan per ton. The operating rate of coal tar pitch was high, with adequate inventory and a bearish supply side. Downstream pre-baked anode enterprises had a strong mindset of pressing prices, and new order prices were bearish. Graphite electrode enterprises and coal-based needle coke enterprises operated at low levels. Based on current market supply and demand, coal tar pitch prices will have some room for decline next month. Regarding low-sulfur oil slurry, prices have been in a downward trend in the first half of the month and declined more significantly in the latter half. As of the end of the month, mainstream transactions for low-sulfur oil slurry were at 3,600 to 3,700 yuan per ton. Oil prices continued to decline this month, and low-sulfur oil slurry shipments were sluggish. Refineries faced inventory pressure, and prices remained weak. It is expected that low-sulfur oil slurry prices will remain low or decline overall in the future market.
On the downstream side, the graphite electrode market remained weakly stable this month. Before the National Day holiday, electric arc furnace steel tendering for graphite electrodes was active, and graphite electrode orders increased slightly. However, transaction prices declined slightly. As of the end of the month, mainstream UHP600 prices were 16,500 to 17,500 yuan per ton. In September, demand for needle coke from graphite electrodes was satisfactory, becoming the main demand in the downstream market for needle coke. Demand is expected to continue until the mid-to-late part of next month, until the peak season in the steel industry ends. In the anode material market, this month, end-user battery cell factories recovered their orders for anode materials. However, anode material inventory remained high, and anode materials maintained a state of destocking. Rigid demand procurement for raw materials was maintained, with overall support being weak. In the fourth quarter, changes in end-user battery cell production schedules were small. Therefore, as anode material destocking is completed, it is expected that there will be another wave of raw material procurement plans for anode materials at the end of October or the beginning of November.
Overall, this month, needle coke was in a dynamic and stable state. Needle coke costs increased, and overall downstream demand remained unchanged but was relatively weak. There are positive expectations for downstream demand in the future market. It is expected that needle coke prices in October should not fluctuate significantly, and individual manufacturers may make slight adjustments based on their own situations.
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