Cost pressure increases, and electrode paste prices sluggishly rise
(2024.3.29-2024.4.3) China's electrode paste market prices are sluggish. As of this Wednesday, the average market price of electrode paste was 4,750 yuan/ton, which was the same as last week's price, and the market transaction price range was 4,200-5,000 yuan/ton. The price of raw material coal pitch continued to rise this week, and the cost of electrode paste companies was under pressure. However, the downstream calcium carbide market fluctuated downwards. Many companies of ferrosilicon and silicon manganese stopped production and reduced production. The demand side was not well supported. In addition, there is low-price competition in the market. The electrode Past prices are mainly weak and stable. Electrode paste manufacturers mainly take orders from old customers, and their shipments are relatively stable. The actual transaction prices in the market vary, and the price difference is large.
This week, the mainstream of China's electrode paste industry is operating normally. Most companies in northwest Ningxia are operating normally, with major mainstream manufacturers deeply tied to large downstream companies, focusing on multi-order production, and orders are relatively stable; companies in North China mostly maintain old customers, are able to start operations, and the output of a certain company is slightly reduced; Central China Regional trading continues to be stable, and most companies are producing normally; a company in East China produces according to orders, mainly for export orders, and releases relatively little output. A company said it is operating at full capacity; companies in South China are producing normally, and most of them are regular customers. Orders are the main focus; companies in the southwest region are producing normally, and one company has no plans to resume production yet.
This week, the domestic calcium carbide market fluctuated and declined. The average market price was about 3,124 yuan/ton. The overall operating rate of the industry was about 71.29%, an increase of 1.58% compared with last week. During the week, Ningxia and Wuhai regions increased production and continued to restart furnaces. The output of individual companies in Ulanqab region also increased. PVC supporting calcium carbide furnaces in Sichuan region also restarted. Ningxia Huinong region experienced a reduction in load due to power problems. In addition, the profits of the calcium carbide industry shrank this week, and the losses of individual small businesses increased.
Market outlook predict：
In terms of raw materials: coal pitch prices are expected to remain firm, and the focus of transactions will move upward; the market for medium and high sulfur calcined coke is oversupplied, and market prices are expected to remain stable; electric calcined anthracite prices remain stable. Overall, the cost pressure of electrode paste is relatively high.
Supply and demand side: Mainstream electrode paste companies are operating normally, the calcium carbide market continues to decline, the ferroalloy market is operating weakly, and many companies have stopped production and reduced production. Therefore, the supply side is normal, the demand side performs poorly, and the market is oversupplied.
Taken together, the cost pressure on enterprises is high, the market supply exceeds demand, and the downstream market is weak. It is difficult for electrode paste companies to talk about rising prices. It is expected that the market price of electrode paste will be generally stable, and the transaction price range may be 4,200-5,000 yuan/ton.