C-Chem Raises Needle Coke Selling Price by 70%

Japanese needle coke price is expected to reach record high at around US$ 2,500 per tonne in next year. C-Chem announced on Monday the firm raises needle coke price by 70% effective for the shipment in January 2009. The other 3 needle coke makers in Japan, Mitsubishi Chemical, Nippon Oil Corporation and Petro Koks seem to consider the price hike as well. Production cost would increase for capped electrode makers.

C-Chem started to offer the price hike against capped electrode makers this week, raising the selling price by 70% for no.2 grade products and by above 70% for no.1 grade products. The firm has already started the price negotiation with overseas users for fiscal 2009 (Apr09-Mar10) shipment, up by 70% year-on-year.

Needle coke market is 900,000-1,000,0000 tonnes per year worldwide and 180,000 tonnes in Japan. Needle coke produces are manufactured by only 6 makers and 7 plants in the world. The demand exceeds the production capacity substantially globally due to active capacity expansion by capped electrode makers. C-Chem judged to need the price hike to keep stable supply.

The firm is building up the production capacity of needle coke by 20,000 tonnes to 120,000 tonnes per year toward autumn 2009. The firm cannot meet users’ requests until the output expansion. The firm prospects the supply and demand balance keeps tight in medium term.