Steel prices plummet, can electrodes hold up?

       With the high temperature and rainy weather further restricting the downstream demand for steel, and the Federal Reserve raising interest rates more than expected, the financial market has experienced violent turmoil since last weekend, and the price of black products has plunged sharply.

        It quickly followed the decline, with a decline of about 10%. In this situation, can the graphite electrode hold up?

          From the perspective of cost: the international oil price has also fallen sharply recently, but the gap between supply and demand is still there. It is expected that the price of raw materials such as iron ore, scrap steel, and coke will remain high and fluctuate in the near future. The price of raw materials such as petroleum coke and needle coke will not increase If there is too much fluctuation, the bottom support of graphite electrode price is still obvious.

         From the perspective of demand: recently, the prices of steel and scrap steel have basically fallen at the same time, and the decline has been equal. Therefore, the loss of electric furnace steel mills has not expanded significantly. The resumption plan of individual leading steel mills in Jiangsu remains unchanged in late June; although many long-process steel mills have Profits have turned into losses, but there are still marginal contributions. In the environment where various regions strive to ensure economic stability, some steel mills (such as Jiangsu and Shandong) admit that they can only continue to maintain production, which has little impact on the demand for graphite electrodes for the time being.

        Overall, the price of domestic graphite electrodes will still fluctuate slightly in the near future.