Summary of graphitized carburizer market operations in 2023

Summary of graphitized carburizer market operations in 2023

Graphitized carburizing agent (C≥98.5%; N≤300ppm; S≤0.05%)

At the beginning of the month, the upstream raw material petroleum coke market was operating weakly and steadily as a whole. Main refinery shipments were stable, and local coke prices stabilized, with some prices rising or falling slightly. Trading in the low-sulfur calcined coke market remains average, with companies mostly executing early orders and mainstream coke prices temporarily stable.

In terms of anode material companies, the phenomenon of production suspension and reduction has been more prominent recently. Graphitization output has shrunk, and the overall market supply of graphitized carburizer has decreased. This has given strong support to market prices to a certain extent. It is expected that the graphitized carburizer market will remain weak in the short term. The overall performance of the agent is still weak. Operations are expected to improve.

Since the third quarter, profits of domestic steel production companies have continued to improve. Data show that as of October 30, among the listed steel companies that have disclosed three quarterly reports, 19 have achieved month-on-month growth in net profit attributable to their parent companies in the third quarter, and 24 have experienced month-on-month sales growth. In the late market period, the country's efforts to stabilize the economy's "package" of policies and follow-up measures will be fully implemented and effective, which will help steel demand gradually recover. The amount of raw material procurement released by steel companies is expected to increase, which is conducive to the operation of the carburizing agent market.

At the end of the month, upstream petroleum coke prices generally remained stable, while some refinery coke prices adjusted within a narrow range. Due to the continued sluggish market demand, the overall trading volume of petroleum coke is average, and the inventories of some companies are under pressure; the market performance of calcined coke is mostly weak and stable, with a small number of prices falling, especially the demand for low-sulfur calcined coke is average, and some companies are offering profit promotions. In addition, electrode companies are cautious in purchasing, and it is difficult to find favorable support for the price of calcined coke. The cost performance of downstream carburizing agent companies is weak and the adjustment is weak. The demand from downstream steel companies is not optimistic yet. Although steel profits have turned around for the better, the overall crude steel output has declined month-on-month. The operating rate of steel companies is still lower than expected. The upstream raw material procurement mentality continues to be cautious and basically purchases on demand and implements Long-term contracts are the main focus, and new order transactions need to be improved.

Based on all current predictions, the weak operating trend of the graphitized carburizer market is likely to continue.

On the one hand, it is difficult for the overall operating situation of the steel industry to improve significantly in the short term;

On the other hand, the pressure of environmental protection policies will also continue to affect the production activities of steel companies.

Against this background, the overall performance of graphitized carburizers is still weak.