Other Elements and Materials

China’s Graphite Electrode Major Fangda Carbon to Set up a 50,000 tonnes GE Plant

China’s Graphite Electrode Major Fangda Carbon to Set up a 50,000 tonnes GE Plant
Mining News Pro - Shanghai-based Graphite electrode (GE) manufacturer Fangda Carbon New Material Company Ltd (Fangda Carbon) plans to build 50,000 tonnes of Ultra High Power (UHP) grade GE plant in Ganmei Industrial Zone, Meishan in Sichuan province.
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According to Mining News Pro -Shanghai-based Graphite electrode (GE) manufacturer Fangda Carbon New Material Company Ltd (Fangda Carbon) plans to build 50,000 tonnes of Ultra High Power (UHP) grade GE plant in Ganmei Industrial Zone, Meishan in Sichuan province. The company is headquartered in Lanzhou city, Northwest China’s Gansu province and have current total GE capacity of 190,000 tonnes.

The project which will be operated under the management of Fangda’s subsidiary Meishan Fangda Rongguang Carbon Company (Meishan Fangda) is estimated to have a total investment of RMB 1.4 billion (USD 204 million) and is expected to develop in stages with each stage being 24 months.

In past few years because of China’s supply side reforms, induction furnace closure, and intensifying environmental protection survey, the ratio of electric-arc furnace (EAF) steel output has been on the rise and subsequently the demand for graphite electrodes (GE) – a key raw material for EAFs has been growing substantially.

Fangda Carbon has already identified the potential in China’s graphite electrodes market. In the month of Apr’18, the company has signed an agreement with Baosteel Chemical Co. Ltd to set up 100,000 tonnes of high power grade GE plant in Honggu city of Gansu province and now a few months later the company made an announcement of Sichuan’s GE plant project.

With Beijing’s growing emphasis on environmental protection, EAF steelmaking has been identified with growing market potential in the future although at present EAF steel capacity accounts for only about 10% of China’s total steel capacity.

China is the world’s largest graphite electrode producer and therefore a major supplier with its output hitting 600,000 tonnes in 2017, though the total capacity is estimated at approximately 1 MnT, according to the statistics from China Carbon Industry Association.

Intensifying curbing efforts on China’s steel mills’ sintering, coking, and blast furnaces since 2017 saw the average price of 500mm UHP graphite electrodes in East China’s Jiangsu province, the country’s core EAF steelmaking market, shoot to an all-time high of RMB 173,500/MT in the month of August as against RMB 13,500/MT in the beginning of the year.

As per the market sources, there was panicking buying of graphite electrode early 2017 by Chinese EAF mills when they came to realize that Beijing would be deadly serious about pollution control leading to dramatic increase in prices.


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