NEWS
IRON and STEEL   Materials  

Indian GE Price touches a New Low amid Slowdown in Steel Sector

The recession in global as well domestic steel demand seems to have taken a toll on Indian graphite electrodes prices also. The domestic GE prices have seen a further sharp correction of 20% M-o-M basis this month.

As per the SteelMint sources, UHP grade electrodes prices are heard to be in the range of INR 400,000 – 450,0000/MT (USD 5,600 – 6,300/MT) whereas that of HP grade are at INR 150,000 (USD 2,100/MT).

This free fall in the electrodes prices is mainly being led weak steel production in key EAF based geographies such as U.S. and Europe, destocking by steel companies and sanctions on supply to Iran which was a key GE procuring country for Indian electrodes manufacturer.

Amid the poor demand, majority of GE producers are now sitting at 2-3 months of finished goods inventory. If we talk about the utilization rates, Indian GE producers are operating at 60% utilisation levels against 85-90% last year due to lack of orders.

To everyone’s surprise, Indian electrodes prices at present are lower against its Chinese and other countries counterparts. The key reasons for the same being, China continues to supply their limited volumes to Iran where they are enjoying a little premium as no other country is venturing Iranian market due to U.S. sanctions. In case of Japan, the electrodes prices are reset only twice a year and are thus enjoying higher prices negotiated earlier in the month of June. The U.S. based GE producer, GrafTech has signed long term contracts of 3-5 years with good percentage of its clients at USD 10,000/MT and for non-contracted volumes it is selling electrodes at USD 6,500/MT. Apart from these factors, intense market share battle in domestic market between HEG and Graphite India is also adding to pricing pressure in India.

In terms of costs, petroleum needle coke prices for second half of 2019 has remained flat at USD 4500/MT. However, given the overall recession in steel and allied sectors, mid contract correction of USD 1000/MT from October 2019 is being anticipated.

News No: 6934
Date: 2019/10/14 - 11:50
News Source: SteelMint

Indian GE Price  Steel  US sanctions  HEG  petroleum needle coke 

Comments:

Leave a Comment:

   
   
   
 

Domestic manufacturing of oil pipes saves Iran €60m

The acting head of the Industrial Development and Renovation Organization of Iran (IDRO) has said that manufacturing various types of oil pipes by domestic producers has saved the country over €60 million.
 

HEPCO to manufacture equipment, machinery for mining companies

Heavy Equipment Production Company (HEPCO) has signed memorandums of understanding (MOUs) with five major domestic mining companies to manufacture equipment and machinery for them.
 

Kobe Steel turns non-standard compressor affiliate in China into subsidiary

Kobe Steel, Ltd announces that it has turned its Chinese affiliate, Wuxi Compressor Co., Ltd., into a subsidiary after acquiring additional shares in the company in April 2020. Based in Wuxi, Jiangsu Province, Wuxi Compressor manufactures designs and sells non-standard (process gas) compressors, a core component used in petroleum refining, chemical and natural gas plants.
 

MMK and SMS group managed to implement targeted commissioning despite extremely difficult conditions

In 2018, Magnitogorsk Iron & Steel Works (MMK), Russia, has awarded an order to SMS group covering the extensive modernization of the finishing mill mechanical equipment and the fundamental revamp of the electrical and automation system of hot strip mill 2500 at the Magnitogorsk site.
 WEEKLY STEEL SCRAP:

Turkey keeps buying, Asia bulk markets go quiet

Turkish steel producers remained active in the market for import scrap in the week ending Friday June 12, while prices for bulk scrap in Japan and Vietnam appear to hit a ceiling as activity slowed.
 

Steel import price recovery persists in South America on stronger demand, currency

Prices for flat-rolled steel imported into South America continued to recover during the week to Friday June 12 as more increases were issued - mainly by Chinese and Japanese mills - for August-shipment cargoes.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners