February Carbon Market Briefing

The carbon industry is a vital raw-materials sector for the nation. Thanks to its outstanding properties, it serves as an irreplaceable specialized material in many niche applications—materials that no metal or nonmetal can substitute. It is a quintessential example of a circular economy industry. The carbon industry finds extensive use in fields such as metallurgy, chemical engineering, mechanical manufacturing, aerospace, wind energy, solar energy, nuclear power, and other new energy sectors. China Carbon Network is a comprehensive information platform that integrates video publishing on carbon products, access to supply-and-demand information, real-time monitoring of industry prices, services tailored for carbon enterprises, product listings, market trend updates, and promotion of carbon technologies. Join China Carbon Network now to be among the first to receive the latest information on the carbon industry!

01 Petroleum Coke

Petroleum Coke

In February, affected by environmental production restrictions related to the Winter Olympics, the petroleum coke market as a whole experienced supply shortages, with refinery inventories of petroleum coke remaining at low levels and prices rising rapidly. Although the Winter Olympics have now concluded, since March and April are peak maintenance periods for refinery coking units, petroleum coke supply is expected to further decline at that time. Meanwhile, downstream industries are resuming work and production, and restocking activities are providing support, leading to a further increase in demand for petroleum coke. As a result, petroleum coke prices are forecast to continue rising.

02 Calcined Coke

Calcined Coke

In February, on the one hand, the price of raw material petroleum coke rose sharply; on the other hand, affected by the Winter Olympics, enterprises reduced or halted production, leading to a decline in the supply of calcined coke. With reduced supply and rising costs, market prices for calcined coke surged. After the Winter Olympics concluded, calcined coke producers gradually resumed production, boosting the overall supply of calcined coke in the market. However, actual transaction volumes remained generally subdued. Given that the price of the raw material petroleum coke continues to rise sharply, supported by rising costs, companies are maintaining firm pricing. It is expected that calcined coke prices will likely continue to rise in the coming period.

03 Needle Coke

Needle Coke

In February, the supply of needle coke in the market declined, and high-quality needle coke resources became scarce, boosting upward price trends. Supported by the international crude oil market, the price of oil slurry continued to rise, while the price of soft asphalt remained firm at high levels, keeping needle coke costs elevated. Downstream demand remained robust, with ample orders for negative electrode materials, further underpinning the upward momentum of needle coke prices. On the one hand, overall plant operating rates in the market remained low, providing some support for prices; on the other hand, downstream demand for negative electrode materials and graphite electrodes is expected to pick up in March, suggesting that prices are likely to continue rising in the near future.

04 Graphite Electrode

Graphite Electrode

In February, prices of upstream raw materials for graphite electrodes—low-sulfur petroleum coke and needle coke—continued to rise, keeping graphite electrode production costs high. Meanwhile, steel mills downstream have been gradually resuming production after the Spring Festival, boosting expectations for end-demand for steel products. However, overall operating rates among graphite electrode manufacturers remain insufficient, and supply of certain specifications has already become relatively tight. In the short term, the graphite electrode market is largely driven by previous orders, and most transactions continue to be settled at earlier price levels. It is expected that, under the combined boost of high costs, rising demand, and tight supply, graphite electrode prices will show an upward trend.

05 Pre-baked Anode

Prebaked Carbon Anode

In February, due to environmental restrictions, the output of prebaked anodes declined significantly compared to January. In addition to environmental factors, there was also immense cost pressure stemming from rising prices of upstream raw materials. Meanwhile, the downstream electrolytic aluminum market kicked off 2022 with a strong start, boosting demand for prebaked anodes. With the successful conclusion of the Winter Olympics, some provinces that had previously imposed production restrictions have gradually lifted those restrictions, and several carbon material enterprises have begun restarting their operations. At this stage, enterprises that have yet to resume production are expected to start up around mid-March. Driven by a combination of favorable factors—including high costs and rising demand—prebaked anode market prices are forecast to show an upward trend in March.

06 Carbon Additive

Fuel

In February, due to environmental protection measures and production restrictions, some enterprises reduced or even halted production, focusing instead on fulfilling fixed orders, which led to a tight market supply. As a result of the upward pressure driven by the rising prices of calcined coke raw materials, both calcined coke-based carbon additives and graphitized carbon additives continued to rise in price. Cost factors provided strong support, further boosting the prices of carbon additives. On the downstream side, with the exception of regions surrounding Beijing, steel mills and foundries have seen a steady recovery in production, and end-demand is gradually being released. It is expected that in mid-March, prices of high- and medium-grade carbon additives will continue to rise, primarily supported by cost factors; meanwhile, low-grade carbon additives, less affected by raw material price fluctuations, are likely to remain stable.

07 Electrode Paste

Electrode Paste

In February, mainstream prices in China’s electrode paste market remained stable, and overall trading activity in the industry was relatively subdued. Upstream raw materials—such as calcined anthracite coal and medium-temperature pitch—remained stable in price, while prices for medium-to-high sulfur calcined coke rose. Overall, raw material costs stayed at a high level. Downstream calcium carbide markets purchased according to demand, and most electrode paste companies continued to fulfill earlier orders. Coupled with persistently high raw material prices, profit margins have narrowed significantly, putting pressure on enterprises. It is expected that, supported by strong cost pressures, electrode paste prices will trend upward.

08 Cathode Carbon Block

Cathode Carbon Block

In February, the supply of cathode carbon blocks in the market significantly contracted. Enterprises were primarily focused on fulfilling earlier orders. Raw material costs continued to rise, particularly with the sustained upward trend in low-sulfur coke prices. Coupled with the relatively long production cycle for cathode carbon blocks—most of which are sold under long-term contracts—enterprises are facing considerable operational pressure, and the industry’s profit margins remain limited.

With supply tightening, rising costs, and robust downstream demand, the market for cathode carbon blocks is well supported. It is expected that China’s cathode carbon block prices will show an upward trend in March.

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