China Graphite Electrode Market Analysis Report

China Graphite Electrode Market Analysis Report

Report Date: March 21, 2025

I. Recent Market Overview

 As of March 2025, the Chinese graphite electrode market has shown a fluctuating adjustment trend. Influenced by raw material price fluctuations, changes in downstream demand, and international market dynamics, graphite electrode prices have experienced some volatility recently. Specific performance includes:

 - Price Trend: From early 2025 to March, graphite electrode prices first rose and then fell. From January to February, prices increased slightly due to rising raw material prices and steel mill restocking demand. However, after entering March, prices declined as demand weakened and supply increased.

 -Market Supply and Demand: On the supply side, domestic graphite electrode production capacity remained relatively stable, with some companies experiencing slight supply tightening due to environmental production restrictions. On the demand side, the steel industry’s demand for graphite electrodes remained steady, but some downstream companies became more cautious in procurement due to macroeconomic factors.

 - International Market: In the international market, graphite electrode prices fluctuated slightly due to exchange rate volatility and trade policies, exerting some influence on the Chinese market.

 II. Analysis of Influencing Factors

 1. Raw Material Price Fluctuations: Petroleum coke and needle coke are the main raw materials for graphite electrodes, and their price fluctuations directly affect production costs. In early 2025, petroleum coke prices rose due to increasing international oil prices, driving up graphite electrode prices. After March, as oil prices fell, cost pressures eased.

 2. Downstream Demand Changes: The steel industry is the primary consumer of graphite electrodes. In early 2025, steel mills had strong restocking demand, but after March, demand weakened as the steel market entered its off-season.

3. Impact of Environmental Policies: Stricter domestic environmental policies led to production restrictions for some graphite electrode manufacturers, slightly affecting supply, though the overall impact was limited.

4. International Market Volatility: In the international market, graphite electrode prices were influenced by exchange rate fluctuations and trade policies, creating a ripple effect on the Chinese market.

 III. Future Outlook

1. Price Trend Forecast: In the short term, graphite electrode prices may continue to adjust slightly. As raw material prices stabilize, cost-side support for prices will weaken, while demand-side procurement willingness may remain cautious due to macroeconomic factors, limiting upward price potential.

 2. Supply and Demand Outlook: On the supply side, as environmental policies are gradually implemented, some companies may continue to face production restrictions, but overall supply capacity will remain stable. On the demand side, the steel industry’s demand for graphite electrodes is expected to remain steady, though demand growth may be limited by macroeconomic factors.

3. International Market Impact: International market volatility will continue to influence the Chinese market, necessitating attention to exchange rate changes and trade policy adjustments.

 IV. Conclusion and Recommendations

 In summary, the Chinese graphite electrode market in March 2025 showed a fluctuating adjustment trend, with prices rising and then falling, and a relatively balanced supply-demand relationship. In the short term, prices may continue to adjust slightly. Companies are advised to closely monitor raw material prices, downstream demand, and international market changes, and to plan production and procurement strategies accordingly to mitigate market volatility risks.