2020 is a fully challenging year. The Coronavirus spread in the world, threaten people’s life and affect country’s operation seriously. At the serious situation, what will the graphite electrode’s price go?

The Coronavirus have a strong impact on global economy. Even exceed the 2008’s economic crisis. For blocking the spread of virus, many country limit the people to go outside. Steel company’s order decrease. At the same time, there are enough graphite electrode in stock. Many metallurgy company cancel or postpone the signed orders.

The production of graphite electrode also be affected. Until now, most of producing country is fighting with coronavirus. The graphite electrode manufacturer can’t but reduce the production. China has win the virus and resume normally. Although China’s producer lose some orders, the producing line operate normally.

The global petroleum market fluctuate drastically. From the beginning of 2020, the petroleum price reduce by 65%. According to economic experts, the petroleum price will keep reducing in coming days. But the space is very little. The needle coke occupy big proportion in UHP & HP electrode cost. Actually petroleum falling price can reduce the cost of needle coke. It means the cost of HP/UHP graphite electrode may be go down in coming days. But the time is short and the space is very small. Why? As far as we know, there are so much oil and little space to reserve. More important, the demand of petroleum decrease sharply. The petroleum company only could reduce the refinement. The needle coke is from the residue of oil refinement. The production of needle coke also be reduced.

The crisis is the chance. Based on the above analysis, as one of permanent member of CCIA, we think the graphite electrode’s price have little space and time to reduce. Once the Coronavirus end, the price will bounce immediately.