Double carbon drive + capacity release, graphite electrode head set sail again

Double carbon "opens the demand space, capacity approval tightening boost graphite electrode industry long-term high prosperity. Electric furnace CO2 emission per ton of steelmaking is only about 0.5 tons, less than 1/4 of the blast furnace steelmaking emission, which is effective to reduce the steel industry Carbon emissions, policies to encourage the improvement of the proportion of electric furnace steel, "fourteen five" at the end of the electric furnace steel production proportion of crude steel production is expected Reach 20%, is expected to 2021-2025 electric furnace steelmaking consumption graphite electrode compound growth rate of 18.48%, industry demand
The space is vast. Graphite electrode itself is a high energy consumption industry, affected by the dual control of energy consumption and other policies, some provinces and cities issued policies Policy restrictions on low-end production capacity approval, industry inflection point gradually appeared, the price of graphite electrode is expected to rise for a long time. Hyperhigh-power graphite electrodes are intensively put into production, and performance release can be achieved soon. Hefei Carbon, Meishan Fangda,Chengdu Rongguang three places a total of 125,000 tons of ultra-high power graphite electrode project in 2022 centralized production, 2025 company

The proportion of ultra-high power graphite electrode is expected to reach 67.3%, and the product structure is further optimized. The company in 2020 super high Power graphite electrode sales of 67,200 tons, the domestic market account for 21.65%, with the ultra-high power graphite electrode project gradually put into production, the company has a stronger voice in the high-end graphite electrode market. Special graphite projects are gradually expanded to fully benefit the downstream photovoltaic and other industries to accelerate the development. Subsidiary Chengdu carbon A total of 30,000 tons of special graphite project is planned. The first phase of 10,000 tons production line has been put into operation, and the remaining capacity will be gradually built put into production, is expected to reach 27,000 tons of isostatic graphite production in 2025, 2021-2025 compound growth rate up to 25%. Benefiting from the accelerated development of downstream photovoltaic solar energy, semiconductor, nuclear engineering and other industries, it is expected to be static in the future the market demand for pressed graphite will grow rapidly.

From Dong Jian Yan Bao-Minsheng securities company