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Demand Affects The Price Of Graphite Electrodes

Apr 24, 2019
Demand is always the primary cause of price increases. Obviously, lead to the fundamental reason for the increase in the price of graphite electrode, is the policy on intermediate frequency furnace to produce steel supply and demand gap leads to refining continuous high profits and superposition of scrap steel prices caused by electric arc furnace steelmaking cost from inferior to superior, and then drive electric arc furnace production rapid ascension, to replace the intermediate frequency furnace and converter steelmaking caused by demand growth. Compared with aggregate demand expansion, of course, because of the lack of overall growth, stock replacement is often weak demand, limited size, but the profit elasticity of supply is insufficient, graphite electrode performance is not the weak against the strong rise in price: on the one hand, for up to six months short-term supply release production cycle constraints, on the other hand, environmental protection, such as distributed security administration means also continues to suppress the elasticity of supply.


If the pattern of strong price of graphite electrode is broken, either the supply appears volume, or the demand begins to fall. The short-term supply is inelastic, and the demand fluctuates more frequently than the short-term supply. After all, the output of eaf steel will change directly with the profit of eaf link. In addition to the increase of scrap steel price and the decline of steel price, the price of graphite electrode that maintains the increase will also hinder the increase of eaf profit. Therefore, it is more likely that demand factors will end this round of graphite electrode price hike, which will ultimately depend on the overall profitability of the arc furnace and steel smelting link. At present, the continuous high profitability of the smelting process will continue to support the release of graphite electrode demand, and the superposition supply is still within the limited range. It is expected that the price of graphite electrode will continue to be strong for a period of time.
 
 
*source:https://www.adbrain.org/Instructions/20190401/13.html
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