Posted on 14 Nov 2018
China’s exports of graphite electrodes to the US market aren’t likely to majorly change domestic market dynamics, says GrafTech ceo David Rintoul on the company’s third-quarter conference call with analysts.
Rintoul told analysts on the call that China is indeed exporting some graphite electrodes to the US, but its product mix is not – as yet – a threat to domestic producers like GrafTech, Kallanish understands.
The majority of exported electrodes are small-diameter, he says, and much of the excess graphite electrode capacity currently being exported to the US will soon be swallowed up by its own steelmaking modernisation efforts.
“Our belief is that they will have quite a challenge on their hands servicing their own domestic market with a ramp-up of electric steelmaking capacity in China,” Rintoul says. “I think in the near term, over the next period of time, and it's difficult to know what that is, but as long as the Chinese keep building electric arc furnaces at the rate they are, then we believe the Chinese graphite electrode capacity will be entertained servicing their domestic market.”
GrafTech saw its Q3 earnings jump from a loss of $3.92 million in Q3 2017 to $199m in Q3, largely due to a surge in the price of graphite electrodes.
