Needle coke market monthly report（3.01-3.29）

ICC News: Needle coke market performed steady for most part of the March. On the domestic market front, coal-based needle coke producer Hongte Chemical continues to operate at regular pace, generating an output of 3,000 tons quoted at 10,000 yuan/mt and discounts are offered for bulk purchases. Sinosteel Anshan halted production this month with resumption date undecided yet, and as a result, sales for Hongte Chemical’s needle coke were pushed up to some extent, as some buyers have switched purchases from Anshan to Hongte. Currently, Hongte has a clientele base including SGL group, Jilin Carbon, Kaifeng Carbon, Guanghan Shida Carbon…
The stability in raw material continues to offer support to electrode market in terms of cost, however, the trend of electrode market remains in the grip of its downstream sectors. Currently, graphite electrode sector still faces major pressure on sales, electrode prices maintain stable amid deadlock situation, with UHP products being priced at 18,000-30,000 yuan/mt. On the end-use market, with the launch of national five-point policy on March 1, recent-burgeoning steel market has once again encountered harsh situation during spring season like last year, which suggests steel supply and demand imbalance have yet been properly addressed as intermittent supply glut issues remain salient. Coupled with waning demand, overly rapid production growth has created enormous pressure in steel industry.
Needle coke prices for 2013 are unlikely to see rise. Besides, order contracts aren’t signed on a yearly basis; instead, more enterprises have chosen to sign it on a monthly basis. Moreover, with a part of contracts not fulfilled yet, it indicates that there has been a substantial drop in electrode enterprises’ purchases capacities, implying an awkward situation in graphite electrode sales.
In the overseas markets, Customs data show China’s petroleum-based needle coke imports totaled 6,670 tons in Jan 2013, up 39.72% compared to the same period in 2012. Major import sources are the United States, Britain, Japan; China's coal needle coke (pitch coke) imports were 4,328 tons, up 9.71% year-on-year from the same period in 2012,and  main import source is Japan.