SteelMint has learnt from its market sources that the small-sized GE prices in the country have picked up by RMB 200/t.
The prices for 450mm HP electrodes are currently heard to be at RMB 13,000-14,000/t ($1,920-2,070/t).
Buyers have once again become active amid increasing steel consumption since last month, lending support to electrode prices.
"The GE prices have touched bottom and is unlikely to go down further. However, the price increase of RMB 200/t is temporary is not likely to sustain in the long run amid tighter credit conditions. As this is going to impact the steel demand from real estate and infrastructure sector," quoted a trader based in China citing severe credit crunch.
China has issued rules to tighten regulation for the country's non-financial companies that control at least two financial institutions doing business across financial sector, requiring them to apply for and gain approval from the central bank.
Whereas, UHP grade electrode prices have remained stable for the past few months at around RMB 17,000-20,000/t ($2,515/t - 2,960/t).
In case of the key raw material - needle coke too prices remained stable this week. The price of oil-based needle coke is assessed at MB 5,800-7200/t ($858-1,065/t) and the price of coal-based needle coke is at RMB 4000-6300/t ($590-930/t).
In the short-term GE and needle coke prices in China are anticipated to remain stable amid moderate demand.
In the long-run, as the government is encouraging replacement of old production facilities with EAF mills, it will surely drive the demand and price for graphite electrode and needle coke.