GrafTech Secures 85% of 2026 Volume, Fixes EU Energy, $3,848 Cost
EAF•GrafTech has fixed 2026 EU energy contracts and reports decant oil comprises 25% of production costs, with cash costs at $3,848 per metric ton. With 85% of 2026 volume secured and expected needle coke price hikes in H2, favorable trade rulings by July and September could boost pricing.
1. Cost Structure and Energy Contracts
GrafTech has locked in fixed-price EU energy supply contracts through the end of the year, reducing exposure to market volatility. Decant oil represents about 25% of total production costs, and cash costs improved sequentially to $3,848 per metric ton but remain above Q1 2025 levels.
2. Price Outlook and Needle Coke Costs
Management expects needle coke prices to rise in H2 due to higher oil prices and supply disruptions. Recent price increases have been accepted but will primarily affect deliveries in the third and fourth quarters, with average selling prices rising later this year.
3. 2026 Volume Visibility
The company has secured over 85% of its projected 2026 sales volume, providing strong order book visibility and stability. This backlog supports disciplined commercial execution while management focuses on cost structure improvements.
4. Trade Rulings Timeline and Impact
Pending countervailing duties ruling by end of July and anti-dumping ruling by mid-September could influence 2027 price negotiations. Favorable outcomes in the US, Brazil, Mexico and Europe may enhance market access and pricing power under fair trade practices.
