Posted by Albukhary > 2017-09-25 18:25 | Report Abuse

Very good information, thank you very much.

Posted by Henry Chan > 2017-09-25 19:07 | Report Abuse

should be 总共消耗了"960,000 MT" 的石墨电极, no?

Posted by zefftan > 2017-09-25 19:14 | Report Abuse

You're welcome allbukhary

Henry: 960,000 is kg

Posted by Henry Chan > 2017-09-25 19:16 | Report Abuse

320,000MT x 3 = 960,000MT ma, not meh?

Posted by skywalker999 > 2017-09-25 19:18 | Report Abuse

the most 2% of total cost only...

Posted by zefftan > 2017-09-25 19:21 | Report Abuse

320,000 MT = 320,000,000 kg

Since every 1000 kg consumes 3kg

Hence, 320,000,000 kg / 1000 kg x 3kg
= 960,000 kg
= 960 MT

IF 960,000 MT, the cost wll be very high
Which means electrode alone also costing RM8billion orefi

Posted by Henry Chan > 2017-09-25 19:24 | Report Abuse

Oh every 1000kg consumes 3kg :p thanks for correcting me out sir!

Posted by zefftan > 2017-09-25 19:53 | Report Abuse

youre absolutely welcome sir

Posted by myongcc5 > 2017-09-25 20:11 | Report Abuse

Thanks for good write up! Well done!

Posted by Rukawa > 2017-09-25 21:17 | Report Abuse

Good analysis!

Posted by YLR33 > 2017-09-25 21:18 | Report Abuse

very good info, thank you very much.
good news for those long masteel, ssteel & lionind

Posted by tmooke > 2017-09-25 22:56 | Report Abuse

good info

Posted by bursainvest12 > 2017-09-25 23:40 | Report Abuse

Good analysis! Thanks

Posted by windcloud > 2017-09-26 00:22 | Report Abuse

thanks for your info.

Just write some comments:
Electrodes got 3 types, normal, high and ultra high. Normal performance electodes is made from petroleum coke, high performance electrodes made from needle coke. For steel casting and making, normally at least need to use high performance electrodes that made from needle coke.

Electrodes price increased by about 7-10 fold, if by %, up to 700% since July price hike depend on diameter width.

If normal electrodes, this is about 150-220 or about 8% of the price.

But for steel industry (this need to use for high performance electrodes as for building construction purpose), so cost will be double to 300-440, about 16% of the price.

So if selling price is 2,600, cost will be 2,000 + 400 + 100 = 2,500, the margin will become 100. Please note that China steel price had been dropped a lot recently, so if steel price dropped to below 2,500, profit margin might be affected. Anyway, all need to follow Malaysia market price and individual company structure including finance cost, utility costs and others.

Anyway, just sharing and discussion purpose. If wrong, please rectify me.

Posted by zefftan > 2017-09-26 00:51 | Report Abuse

Dear wind loud:

Thanks for the input

Posted by Albukhary > 2017-09-26 01:52 | Report Abuse

Windloud, I think you calculation are incorrect.

As mentioned by Zefftan, the consumption of graphite electrodes is around 3kg per tonnes (actually the real consumption should be lower than 3kg, as most of EAF claim that their consumption of Graphite Electrodes is between 1.5kg - 2.1kg only).
That mean, 1 tonnes of graphite electrodes can produce minimum 333 tonnes and maximum 666 tonnes of steel.

Assume the current price of ultra high performance graphite electrodes is RMB110,000, so it will equivalent to RM70,000. Based on Zefftan calculation, the average Graphite Electrodes price for previous quarter was approximately RM12,000, that mean there is an increase of RM58,000 for current quarter.

If we take RM58,000 divided into 333 tonnes, then maximum impact to the cost is only RM175 per tonnes.

If we take RM58,000 divided into 666 tonnes, then maximum impact to the cost is only RM87 per tonnes.

So your assumption of cost will increase by RM300-440 is incorrect, it should be maximum RM175 only.

Please correct me if my basis of calculation is wrong.

Posted by windcloud > 2017-09-26 02:29 | Report Abuse

Albukhary, username is windcloud, not windloud.

Normally consumption is around 2kg to 3kg for high performance electrodes.

If 2.5 kg, then 1 tonnes will produce 400 tonnes steel.

High performance granite price let's say RMB120,000 (let's say included tax/duty) x 0.64 = MYR 76,800, divided by MYR 192, is about 7-8% of the current price.

For 666 tonnes, the consumption will be 1.5kg of electrodes, but I wont use this, maybe Annjoo can achieve this but dont know is because of grades of electrodes and any other reason.

You are right, should not simply multiply by 2. Thanks for correct me.

Posted by tealeaf > 2017-09-26 07:26 | Report Abuse

good sharing

Posted by brushsoo > 2017-09-26 10:08 | Report Abuse

good sharing and informative!