- UHP graphite electrode prices moved stable-to-firm in Q1’26, with stronger support emerging in March as oil-linked raw material and logistics costs increased.
- Feedstock pressure rose through petroleum coke, needle coke, power, freight, and insurance costs, as the Strait of Hormuz carries around 20.0% of global oil supply.
- Downstream demand remained mixed. Electric arc furnace steel activity supported consumption in some markets, but weak steel demand in Europe and China limited stronger price gains.
UHP Graphite Electrode (600MM) prices followed a stable-to-firm trend in Q1’26 across Asia, Europe, and North America. Asia saw firmer sentiment in March as petroleum coke and needle-coke-linked inputs strengthened, while Indian steel demand offered better support than China. Europe remained cost-supported but demand-limited, as weak steel output restricted full pass-through of higher energy and logistics costs. North America showed firmer conditions due to higher oil-based raw material, power, and freight costs, supported by relatively steadier electric furnace steel demand. Meanwhile, the Iran war and Strait of Hormuz closure raised shipment risk sharply, with only nine vessels navigating the route on March 2 compared with 135 vessels/day during February, adding pressure to oil-linked carbon inputs and electrode freight costs.
Analyst Insight
According to Procurement Resource, near term, prices may remain firm if coke, power, and freight costs stay elevated. Stronger steel mill buying would be needed for a sharper increase.