Monthly Review: Needle Coke Prices Expected to Stabilize as Downstream Demand Recovers at End of May

In May, needle coke enterprises' inventories gradually increased. To reduce inventories, enterprises offered discounts on sales, leading to an overall decline in transaction prices. Here's a detailed look at prices. As of the end of the month, coal-based needle coke prices ranged from 7,500 to 8,500 yuan/ton, while the mainstream prices of oil-based needle coke were between 7,400 and 8,700 yuan/ton. The mainstream prices of coal-based and oil-based green coke were between 5,100 and 6,500 yuan/ton.

In the import and export market, Japanese coal-based needle coke was priced at 800 US dollars/ton, and South Korean coal-based needle coke at 860 US dollars/ton. For oil-based needle coke, Japanese prices ranged from 1,100 to 1,300 US dollars/ton, while British calcined coke prices were between 1,000 and 1,200 US dollars/ton. The price of coke for anode materials remained stable at 650 - 800 US dollars/ton.

Regarding raw materials, this month, coal tar pitch prices first decreased and then increased. By the end of the month, modified pitch prices were between 4,050 and 4,100 yuan/ton, and medium-temperature pitch prices between 4,050 and 4,200 yuan/ton. Affected by the rise in raw material coal tar prices this month, coal tar pitch prices rebounded. However, there is an expectation of a decline in coal tar prices by the end of the month, and the overall buying sentiment in the downstream market is lukewarm. It is anticipated that coal tar pitch prices will adjust downward in the future market. For low-sulfur oil slurry, its price first increased and then stabilized this month. However, with the expected decline in the operating rate of needle coke manufacturers in the future market, there may be a downward expectation for low-sulfur oil slurry prices, but the decline will be limited, and there is little room for easing the cost pressure of oil-based needle coke.

On the downstream front, the overall market for graphite electrodes was weak this month, with sluggish demand for raw materials throughout. The price of UHP600 dropped from 18,500 - 19,000 yuan/ton to 17,500 - 18,000 yuan/ton. Due to the downturn in the electric arc furnace steel industry, graphite electrode enterprises mainly focused on depleting their inventories and maintained only the minimum rigid demand for raw material procurement. For anode materials, there was a generally cautious approach to raw material procurement this month. But as inventories of raw materials and finished products were depleted, anode material producers' willingness to purchase increased towards the end of the month. It is expected that the demand for raw materials from anode materials will recover in June.

In summary, the overall needle coke market was weak this month, with average downstream demand. However, purchasing willingness improved at the end of the month, although there were discounts on transactions. With a decrease in the supply of needle coke in June, it is expected that needle coke prices will stabilize in the short term.