GrafTech International Ltd (EAF) 2023 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the GrafTech Fourth Quarter 2020 Earnings Conference Call and Webcast. At this time, all lines are in a listen only mode in the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, February 14th, 2024.

早安，女士們、先生們，歡迎參加 GrafTech 2020 年第四季財報電話會議和網路廣播。此時，演示中所有線路都處於只聽模式，我們將進行問答環節。如果在通話期間您隨時需要立即協助，請按下接線員的零星鍵。此電話錄音於 2024 年 2 月 14 日星期三進行。

I would now like to turn the conference over to Mr. Mike Dillon, Vice President, Investor Relations and Corporate Communications. Please go ahead.

我現在將會議交給投資者關係和企業傳播副總裁 Mike Dillon 先生主持。請繼續。

Thank you. Good morning, and welcome to GrafTech International's earnings call for the fourth quarter and full year of 2023. And with me today are Tim Flanagan, Interim Chief Executive Officer; Jeremy Halford, Chief Operating Officer; and Katherine Delgado, Interim Chief Financial Officer. Tim will begin with opening comments. Jeremy will then discuss safety, the commercial environment, sales and operational matters. Catherine will review our quarterly results and other financial details, and Tim will close with comments on our outlook. We will then open the call to questions.

謝謝。早安，歡迎參加 GrafTech International 2023 年第四季和全年財報電話會議。今天和我在一起的還有臨時執行長 Tim Flanagan；傑里米·哈爾福德，營運長；臨時財務長凱瑟琳‧德爾加多 (Katherine Delgado)。蒂姆將從開場評論開始。然後傑里米將討論安全、商業環境、銷售和營運事宜。凱瑟琳將審查我們的季度業績和其他財務細節，蒂姆將對我們的前景發表評論。然後我們將開始提問。

Turning to our next slide. As a reminder, some of the matters discussed in this call may include forward-looking statements regarding, among other things, performance trends and strategy. These statements are based on current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from those indicated by forward-looking statements are shown here. We will also discuss certain non-GAAP financial measures, and these slides include the relevant non-GAAP reconciliations. You can find these slides in the Investor Relations section of our website at www.graftech.com. A replay of the call will also be available on our website.

轉向我們的下一張投影片。提醒一下，本次電話會議中討論的一些事項可能包括有關業績趨勢和策略等的前瞻性陳述。這些陳述是基於目前的預期，並受到風險和不確定性的影響。此處顯示了可能導致實際結果與前瞻性陳述所顯示的結果有重大差異的因素。我們也將討論某些非 GAAP 財務指標，這些指標包括相關的非 GAAP 調整表。您可以在我們網站 www.graftech.com 的投資者關係部分找到這些投影片。我們的網站上也將提供電話會議的重播。

I'll now turn the call over to Tim.

我現在將電話轉給蒂姆。

Morning, everyone, and thank you for joining GrafTech's Fourth Quarter Earnings Call. Let me begin by acknowledging a simple fact we operate in a cyclical industry and find ourselves in a challenging part of that cycle for our industry and for our business. And our results have fallen short of our expectations yet our optimism about the long-term prospects of our Company remain intact. On this call, we will discuss the actions we are taking in response to the cyclical downturn in demand, which include optimizing our footprint and improving our cost structure as well as the reasons for our long-term positive outlook.

大家早安，感謝您參加 GrafTech 第四季財報電話會議。首先讓我承認一個簡單的事實，我們在一個週期性行業中運營，並發現我們的行業和業務正處於該週期中充滿挑戰的部分。我們的業績未達到我們的預期，但我們對公司長期前景的樂觀情緒依然存在。在這次電話會議上，我們將討論我們為應對週期性需求下滑而採取的行動，包括優化我們的足跡和改善我們的成本結構，以及我們長期樂觀前景的原因。

With that backdrop, I will start with the macro environment, which continues to be impacted by economic uncertainty and geopolitical conflict. This includes the ongoing impact of above-target inflation combined with a high risk interest rate environment. In addition, there are multiple active military conflicts globally as well as strained geopolitical relations, all of which are contributing to expanding disruptions in commercial trade. These and other factors are having a significant impact on the economic performance and outlook for many regions, for example, in the EU, which is collectively the world's third largest economy in a key region for our business, 2023 represented another year of low industrial production and weak economic conditions, which are expected to continue for the foreseeable future. These factors have contributed to a constrained global steel industry, which has resulted in persistently soft demand for graphite electrodes. Further, graphite electrode prices remain weak and the industry has suffered from low capacity utilization and his comments, Jeremy will elaborate elaborate on both of these dynamics as weak demand played out in 2023. Graftech was also pressured by the impact of a temporary suspension at our Mexican operations in late 2022. We also experienced ongoing cost pressures, partially due to low capacity utilization. In response, we took a number of steps to help us navigate the headwinds, focusing on those things within our control. Our actions included proactively reducing our production volume to align with our demand outlook, closely managing our costs, capital expenditures and working capital levels and at the same time, making targeted investments to further improve our operational flexibility and product offerings and the impact in 2023 with significant initiatives to manage working capital led to more than 100 million of inventory reduction over the course of the year, resulting in positive free cash flow for 2023. Further, our efforts to reduce costs nearly drove a 10% decline in our 2023 period costs however, as we enter 2024, the softness in the commercial environment persists and in response, we must take additional action.

在此背景下，我將從宏觀環境開始，宏觀環境繼續受到經濟不確定性和地緣政治衝突的影響。這包括高於目標的通膨和高風險利率環境的持續影響。此外，全球範圍內還存在著多起活躍的軍事衝突以及緊張的地緣政治關係，所有這些都加劇了商業貿易的干擾。這些因素和其他因素對許多地區的經濟表現和前景有重大影響，例如，在歐盟，作為我們業務關鍵地區的全球第三大經濟體，2023 年又是工業生產低迷的一年經濟狀況疲軟，預計在可預見的未來仍將持續。這些因素導致全球鋼鐵業受到限制，導致石墨電極需求持續疲軟。此外，石墨電極價格仍然疲軟，產業產能利用率低下，Jeremy 將在 2023 年需求疲軟的情況下詳細闡述這兩個動態。Graftech 也受到 2022 年底墨西哥業務暫停的影響。我們也經歷了持續的成本壓力，部分原因是產能利用率低。作為回應，我們採取了一系列措施來幫助我們應對逆風，並專注於我們控制範圍內的事情。我們的行動包括主動減少產量以適應我們的需求前景，密切管理我們的成本、資本支出和營運資本水平，同時進行有針對性的投資，以進一步提高我們的營運靈活性和產品供應以及2023 年的影響管理營運資金的重大措施導致全年庫存減少超過 1 億美元，從而在 2023 年實現正自由現金流。此外，我們降低成本的努力幾乎使 2023 年期間成本下降了 10%，但是，隨著進入 2024 年，商業環境持續疲軟，為此，我們必須採取額外行動。

This morning. This morning we announced the implementation of a cost rationalization and a footprint optimization plan. This is a set of initiatives designed to reduce our cost structure and optimize our manufacturing footprint, while at the same time preserving our ability to deliver excellent customer service and to capitalize on the long-term growth opportunities.

今天早上。今天早上，我們宣布實施成本合理化和占地面積優化計劃。這是一系列旨在降低我們的成本結構和優化我們的製造足跡的舉措，同時保持我們提供卓越客戶服務和利用長期成長機會的能力。

Let me briefly walk through the three key elements of the program. First, we are indefinitely suspending most of the production activities at our St. Marys facility as well as indefinitely idling certain assets within our remaining graphite electrode manufacturing footprint.

讓我簡要介紹一下該計劃的三個關鍵要素。首先，我們將無限期暫停聖瑪麗工廠的大部分生產活動，並無限期閒置剩餘石墨電極製造基地中的某些資產。

As you know, last year, we announced our intention to restart production at St. Mary's as a primary component of our pin supply risk mitigation strategy. Since then, we've significantly advanced other elements of that strategy. Specifically, we proactively built up our in-stock inventory to exceed historical levels and prove out the capabilities of Pamplona to be a secondary facility for in-stock production, thereby giving us PIN production capabilities on two different continents with the advancement in these areas, we can adapt to the current environment and align costs and production with demand while remaining confident that our supply chains are well-positioned to meet the needs of our customers in all regions. Second, we are implementing actions that will reduce the company's overhead structure and expenses. This includes a thorough review of all our corporate and support functions globally to ensure we have the right structure and resources moving forward.

如您所知，去年，我們宣布打算重啟聖瑪麗工廠的生產，作為我們緩解供應風險策略的主要組成部分。從那時起，我們顯著地推進了該策略的其他要素。具體來說，我們積極建立超過歷史水平的庫存，並證明潘普洛納作為庫存生產二級設施的能力，從而隨著這些領域的進步，使我們在兩個不同大陸擁有 PIN 生產能力，我們可以適應當前的環境，根據需求調整成本和生產，同時仍相信我們的供應鏈能很好地滿足所有地區客戶的需求。其次，我們正在採取措施減少公司的管理費用結構和開支。這包括對我們在全球範圍內的所有公司和支援職能進行徹底審查，以確保我們擁有正確的結構和資源來推進。

Third, we will continue to operate our remaining graphite electrode production facilities at reduced levels as needed in response to weak market conditions, thereby aligning our production with our evolving demand outlook. These actions will drive several key outcomes, specifically the suspension of production at St. Mary's and the reduction in corporate overhead will drive 25 million in annualized cost savings once fully implemented by the end of the second quarter. Excluding the impact of onetime costs, which are estimated to be approximately $5 million. Further, the indefinite idling of certain less-efficient assets across our remaining graphite electrode manufacturing footprint will reduce our stated capacity on a go forward basis from 202,000 metric tons to 178,000 metric tons, a reduction of 12% in light of current economic conditions and behaviors of others in the market. We view this as a prudent step. At the same time, it preserves our ability to meet our customers' needs. It gives us the flexibility to respond to future upswings in the market.

第三，我們將繼續根據需要減少營運剩餘石墨電極生產設施，以應對疲軟的市場狀況，從而使我們的生產與不斷變化的需求前景保持一致。這些行動將帶來幾個關鍵成果，特別是聖瑪麗工廠的停產和企業管理費用的減少，一旦在第二季末全面實施，將節省 2,500 萬美元的年化成本。不包括一次性成本的影響，估計約 500 萬美元。此外，我們剩餘的石墨電極製造足跡中某些效率較低的資產的無限期閒置將使我們的預期產能從 202,000 噸減少到 178,000 噸，根據當前的經濟狀況和行為減少 12%市場上的其他人。我們認為這是一個謹慎的步驟。同時，它保留了我們滿足客戶需求的能力。它使我們能夠靈活地應對未來市場的上漲。

Lastly, these actions will support our efforts to further reduce inventory levels and manage working capital and capital expenditures in 2024. For all the reasons I've noted, we believe these are the right steps for the long-term health of our business. While the focus of much of our discussion today is on near-term headwinds and how we are responding, it's important not to lose sight of the fact that we operate in an industry with substantial long-term tailwinds. These include the expectations that the steel industry decarbonization efforts will continue to drive continued share growth for electric arc furnace method of steel production, thereby driving increased graphite electrode demand. In addition, demand for petroleum needle coke, the key raw material used to produce graphite electrodes is expected to accelerate, driven by it's used to produce synthetic graphite for the anode portion of lithium-ion batteries used in the electrical vehicle market. Graftech possesses a number of unique competitive advantages that support our ability to capitalize on these trends. These include the substantial vertical integration into petroleum needle coke as well as a distinct set of capabilities which supports a compelling customer value proposition.

最後，這些行動將支持我們在 2024 年進一步降低庫存水準並管理營運資本和資本支出的努力。出於我已經指出的所有原因，我們相信這些對於我們業務的長期健康發展是正確的步驟。雖然我們今天討論的大部分重點是近期的不利因素以及我們如何應對，但重要的是不要忽視我們所處的行業具有巨大的長期有利因素這一事實。其中包括預計鋼鐵業脫碳努力將繼續推動電弧爐法鋼鐵生產份額持續成長，從而帶動石墨電極需求增加。此外，石油針狀焦（用於生產石墨電極的關鍵原材料）的需求預計將加速成長，因為它用於生產電動車市場中使用的鋰離子電池陽極部分的合成石墨。Graftech 擁有許多獨特的競爭優勢，支持我們利用這些趨勢的能力。其中包括與石油針狀焦的實質垂直整合以及支持令人信服的客戶價值主張的一組獨特功能。

For all of these reasons, GrafTech is well positioned to benefit from future growth opportunities and create shareholder value. I'll revisit these topics at the end of our pre-prepared remarks, but first let me turn the call over to Jeremy, followed by Katherine as they provide more color around our results and near-term outlook.

基於所有這些原因，GrafTech 處於有利位置，可以從未來的成長機會中受益並創造股東價值。在我們預先準備好的發言結束時，我將重新討論這些主題，但首先讓我將電話轉給傑里米，然後是凱瑟琳，因為他們為我們的結果和近期前景提供了更多的色彩。

Thank you, Tim, and thank you, Tim, and good morning, everyone. As always, I'll start my comments with a brief update on our safety performance, which is a core value at Kraft. We are encouraged that our 2023 recordable incident rate improved significantly from the prior year level and places us among the top operators in the broader manufacturing industry. Improvement in this area was a key point of emphasis with our internal teams in 2023. And I would like to thank all of our team members for their efforts yet we must continue to do better, and we will not be satisfied until we achieve our ultimate goal of zero injuries.

謝謝你，提姆，謝謝你，提姆，大家早安。像往常一樣，我將首先簡要介紹我們的安全績效，這是卡夫的核心價值。令我們感到鼓舞的是，我們 2023 年的可記錄事故率較上年水平顯著改善，使我們躋身更廣泛的製造業的頂級運營商之列。這方面的改進是我們內部團隊 2023 年的重點。我要感謝我們所有團隊成員的努力，但我們必須繼續做得更好，在實現零傷害的最終目標之前我們不會滿足。

Let me now turn to the next slide to provide more color on current macro conditions and the commercial environment. Steel industry production outside of China continues to be constrained by weak demand due to global economic uncertainty. Compounding this has been the impact of steel exports from China, which reached a multiyear high in 2023.

現在讓我轉向下一張投影片，以提供有關當前宏觀狀況和商業環境的更多資訊。由於全球經濟的不確定性，中國以外的鋼鐵業生產繼續受到需求疲軟的限制。雪上加霜的是，中國鋼鐵出口量在 2023 年達到了多年來的新高。

Looking at data recently published by the World Steel Association on a global basis, steel production outside of China was approximately 830 onshore. And in 2023. While this level of production was in line with 2022. In total, there was a significant divergence among regions. In 2023, steel production increased 12% in India and 6% in China in Russia. However, this growth was offset by declines in most of our key commercial regions. Specifically, steel output in Europe declined 7% in 2023 as the ongoing slowdown in industrial production, subdued market demand and high energy costs continued to weigh on steel production in the Americas, steel production was down 3% in 2023, despite output in the US, the largest steel producer in that region being flat year over year as we move through the early part of 2024. We believe that a significant amount of global economic uncertainty remains as an overhang on steel demand and production in the near term. This in turn has resulted in ongoing industry-wide softness for graphite electrode demands. In addition, recent changes in competitive dynamics are having a further impact on graphite electrode pricing. First, despite the weak demand environment, we continue to see a healthy level of electrode exports from certain countries, including India and China into non-tariff protected regions such as the Middle East. These are typically lower priced electrodes with prices continuing to decline further of late second, given these export dynamics, we continue to see a knock-on pricing effect in tariff protected countries such as within the Tier one competitors have continued to lower pricing in these regions to support volume, as Tim will expand on during his closing comments, we view these as transitory changes in the competitive landscape. However, these are nevertheless dynamics that we must manage in the near term.

世界鋼鐵協會最近公佈的全球數據顯示，中國以外地區的鋼鐵產量約為830%。2023 年。雖然這一產量水準與 2022 年相符。總體而言，地區之間存在顯著差異。2023年，印度鋼鐵產量增加12%，俄羅斯鋼鐵產量增加6%。然而，這種增長被我們大多數主要商業區域的下降所抵消。具體而言，由於工業生產持續放緩、市場需求低迷和能源成本高企繼續影響美洲鋼鐵生產，2023年歐洲鋼鐵產量下降7%，儘管美國產量下降，2023年鋼鐵產量仍下降3%到2024 年初，該地區最大的鋼鐵生產商的業績同比持平。我們認為，全球經濟的大量不確定性仍然是短期內鋼鐵需求和生產的懸念。這反過來又導致整個產業對石墨電極的需求持續疲軟。此外，最近競爭動態的變化正在對石墨電極定價產生進一步影響。首先，儘管需求環境疲軟，我們仍然看到印度和中國等某些國家向中東等非關稅保護地區的電極出口保持健康水準。這些通常是價格較低的電極，鑑於這些出口動態，我們繼續看到關稅保護國家（例如一級競爭對手）在這些地區繼續降低價格，從而產生連鎖定價效應。為了支持銷量，正如蒂姆將在結論中詳細闡述的那樣，我們將這些視為競爭格局中的暫時變化。然而，這些仍然是我們短期內必須管理的動態。

With that background, let's turn to the next slide for more details on how these factors have impacted our results and how we are responding.

有了這個背景，讓我們轉向下一張投影片，詳細了解這些因素如何影響我們的結果以及我們如何應對。

The production and sales volume for the fourth quarter of 2023 were both approximately 24,000 metric tons. A key focus throughout 2023 was to proactively manage production volume to align with our evolving demand outlook, and we were pleased with our team's execution of this strategy. Fourth quarter shipments included approximately 5,000 metric tons sold under our LTAs at a weighted average realized price of $8,500 per metric ton and the 19,000 metric tons of non-LTL sales at a weighted average realized price of approximately $4,800 per metric ton. This weighted average price for non LTA sales represents a more than 20% year-over-year decline and a sequential decline from the third quarter of more than 10%, reflecting the pricing dynamics I referenced. Net sales in the fourth quarter of 2023 decreased 45% to the ongoing shift in the mix of our business from LT. eight to nine LTA. volume was the key driver of the year-over-year decline was lower lower overall volume and pricing also contributing for the reasons already mentioned, we expect industry wide demand for graphite electrodes in the near term will remain weak and pricing pressures to persist in most regions. In response, we are taking the actions that Tim outlined in his comments. In addition, we are being selective in the commercial opportunities we are choosing to pursue with a focus on competing responsibly. We believe that we provide a compelling value proposition to our customers, and we can compete on more than just price. Our value proposition includes a strategically positioned manufacturing footprint that provides operational flexibility and reach to key steelmaking regions being the only large-scale graphite electrode producer that is substantially vertically integrated into petroleum needle coke offering, access to the architect furnace productivity system and customer technical services at no incremental cost to the customer and a focus on continually expanding our commercial and product offerings. For example, we remain on track to add 800 millimeter super-sized electrodes to our portfolio by the end of 2024 to serve a small but growing segment of the UHP. graphite electrode market.

2023年第四季的產量和銷售量均約為24,000噸。2023 年的重點是主動管理產量，以適應我們不斷變化的需求前景，我們對團隊執行此策略的情況感到滿意。第四季的出貨量包括根據我們的長期協議銷售的約 5,000 噸，加權平均實現價格為每噸 8,500 美元，以及 19,000 噸非零擔銷售，加權平均實現價格約為每噸 4,800 美元。非長期協議銷售的加權平均價格年減超過 20%，與第三季相比較上季下降超過 10%，反映了我提到的定價動態。由於我們的業務組合不斷從 LT 轉變，2023 年第四季的淨銷售額下降了 45%。八到九個 LTA。銷售量是同比下降的關鍵驅動因素，整體銷售下降，定價也有所下降，出於已經提到的原因，我們預計短期內整個行業對石墨電極的需求將保持疲軟，並且大多數地區的定價壓力將持續存在地區。作為回應，我們正在採取蒂姆在評論中概述的行動。此外，我們對我們選擇追求的商業機會進行選擇性，重點是負責任地競爭。我們相信，我們可以為客戶提供令人信服的價值主張，並且我們可以不僅僅在價格上競爭。我們的價值主張包括戰略定位的製造足跡，提供營運靈活性並覆蓋主要煉鋼地區，成為唯一一家基本上垂直整合到石油針狀焦產品中的大型石墨電極生產商，獲得建築師熔爐生產力系統和客戶技術服務不會增加客戶成本，並專注於不斷擴大我們的商業和產品供應。例如，我們仍有望在 2024 年底之前在我們的產品組合中添加 800 毫米超大電極，以服務規模雖小但不斷增長的 UHP 領域。石墨電極市場。

As always, we remain relentlessly committed to producing the highest quality graphite electrodes and meeting the needs of our customers now and in the future. Let me now turn it over to Catherine to cover the rest of our financial details.

一如既往，我們仍然不懈地致力於生產最高品質的石墨電極並滿足客戶現在和未來的需求。現在讓我將其交給凱瑟琳，以介紹我們其餘的財務細節。

Thank you, Jeremy, and good morning to all who have had a net loss of $217 million or $0.85 per share included a goodwill impairment charge of $171 million and the lower of cost or market inventory valuation adjustment of $12 million. Both of these non-cash charges reflect the near-term industry-wide dynamics, we have spoken to soft graphite electrode demand, weak pricing, both coinciding with higher cost inventory remaining on our balance sheet. Adjusted EBITDA was negative $22 million in the fourth quarter compared to positive adjusted EBITDA of $80 million in the fourth quarter of 2022. The decline in EBITDA reflected first, the continued shift in the mix of our business towards non-LTL volume, second, lower pricing, third, lower sales volume. And fourth, the impact of the lower of cost or market adjustment also contributing to the decline in adjusted EBITDA was higher year-over-year cost on a per metric ton basis. However, we did see a sequential improvement in this metric from the third quarter as we anticipated, as shown in the reconciliation provided in our earnings call materials posted on our website. Our cash COGS per metric ton declined approximately 7% from the third quarter of 2023 to the fourth QUARTER. The key driver of this improvement was a quarter-over-quarter reduction in the level of fixed costs that are being recognized on an accelerated basis due to low production volumes. In other words, these are costs recognized in the current period that would have been inventoried if we were operating at normal production levels. As a reminder, in the third quarter, we recorded approximately 18 million of such costs, approximately half of which was attributable to Seadrift being temporarily idled through the third quarter. In the fourth quarter, needle coke production at Seadrift resumed this along with a modest increase in graphite electrode production resulted in the amount of such costs recognized in the fourth quarter declining to approximately 10 million.

謝謝傑里米，祝所有淨虧損2.17 億美元或每股0.85 美元的人早上好，其中包括1.71 億美元的商譽減值費用和1200 萬美元的成本或市場庫存估值調整（以較低者為準）。這兩項非現金費用都反映了近期全行業的動態，我們已經談到了軟石墨電極的需求、疲軟的定價，兩者都與我們資產負債表上剩餘的成本較高的庫存相一致。第四季調整後 EBITDA 為負 2,200 萬美元，而 2022 年第四季調整後 EBITDA 為正 8,000 萬美元。EBITDA 的下降首先反映了我們的業務組合持續轉向非零擔運輸量，其次反映了定價下降，第三反映了銷售下降。第四，成本或市場調整較低的影響也導致調整後 EBITDA 下降，即每噸成本較去年同期高。然而，正如我們預期的那樣，我們確實看到該指標較第三季度有所改善，如我們網站上發布的財報電話會議資料中提供的對帳所示。從 2023 年第三季到第四季度，我們每噸的現金銷貨成本下降了約 7%。這項改善的關鍵驅動因素是固定成本水準逐季下降，由於產量較低，固定成本水準正在加速下降。換句話說，這些是當期確認的成本，如果我們以正常生產水準運營，這些成本本應計入庫存。提醒一下，在第三季度，我們記錄了大約 1800 萬美元的此類成本，其中大約一半是由於 Seadrift 在第三季度暫時閒置造成的。第四季度，Seadrift 的針狀焦生產恢復，石墨電極產量小幅增加，導致第四季度確認的此類成本金額下降至約 1000 萬美元。

Now as it relates to 2024, we anticipate a low-teen percentage point decline in our cash COGS per metric ton compared to the full year cash cost per metric ton of 2023. In addition to the timing impact of the lower cost or market valuation adjustment that we recorded in the fourth quarter of 23. We expect the decline in cash COGS into 24 to be driven by three factors.

現在，就 2024 年而言，我們預計與 2023 年全年每噸現金成本相比，每噸現金成本將下降十幾個百分點。除了我們在 23 年第四季記錄的較低成本或市場估值調整的時間影響之外。我們預期現金銷貨成本下降至 24 是由三個因素驅動的。

First, the impact of the cost rationalization activities that Tim discussed of the estimate of the estimated $25 million in annualized cost savings once fully implemented by the end of the second quarter, we expect approximately 15 million of the annualized savings will be reflected as reduced fixed manufacturing costs.

首先，蒂姆討論的成本合理化活動的影響，一旦在第二季度末全面實施，年化成本節省預計將達到 2500 萬美元，我們預計大約 1500 萬美元的年化成本節省將反映為減少的固定成本製造成本。

Second, market pricing for key elements of our cost structure including decant oil, energy and coal tar pitch continues to moderate as expected. Third, we expect a modest year-over-year improvement in our sales and production volume in '24, which would have a two-pronged impact on our cash COGS per metric ton, the anticipated increase in our production volume and capacity utilization rates. This will significantly reduce the amount of fixed costs being recognized on an accelerated basis. In addition, our fixed costs will be recognized over a larger volume base compared to the prior year.

其次，我們成本結構的關鍵要素（包括澄清油、能源和煤焦油瀝青）的市場定價持續如預期放緩。第三，我們預計 24 年的銷售量和產量將比去年同期略有改善，這將對我們每噸的現金銷貨成本、產量和產能利用率的預期成長產生雙管齊下的影響。這將大大減少加速確認的固定成本金額。此外，與前一年相比，我們的固定成本將在更大的數量基礎上確認。

Turning to cash flow. For the fourth quarter of '23, we generated $9 million of cash from operating activities and adjusted free cash flow of $4 million. This cash flow performance was supported by our ongoing focus on managing our cost managing our capital expenditures as well as our working capital levels, including another significant reduction in inventory during the quarter. I'm pleased to note that with our disciplined efforts in this area throughout 2023. This resulted in GrafTech being free cash flow positive for the year.

轉向現金流。2023 年第四季度，我們從經營活動中產生了 900 萬美元的現金，調整後的自由現金流為 400 萬美元。這種現金流表現得益於我們持續關注成本管理、資本支出以及營運資本水平，包括本季庫存的再次大幅減少。我很高興地註意到，2023 年我們在這一領域付出了嚴格的努力。這導致 GrafTech 本年度自由現金流為正。

Moving to the next slide. We ended the year with a liquidity position of $289 million, consisting of $170 million of available cash and $112 million available under our revolving credit facility. This reflects the financial covenants that limit borrowing availability under our revolver in certain circumstances. More importantly, we do not anticipate the need to borrow against the revolver in 2024. And further, we have no debt maturities until the end of 2028.

轉到下一張投影片。截至年底，我們的流動性部位為 2.89 億美元，其中包括 1.7 億美元的可用現金和 1.12 億美元的循環信貸額度。這反映了在某些情況下限制我們的左輪手槍借款可用性的財務契約。更重要的是，我們預計 2024 年不需要以左輪手槍為抵押進行借款。此外，我們在 2028 年底之前沒有債務到期。

Now let me turn the call back over to Tim for some additional comments on our outlook.

現在讓我把電話轉回給提姆，請他對我們的前景發表一些補充評論。

Thanks, Catherine. Thus far, we've discussed the current environment and how we are responding. Let me spend the last few minutes of our prepared remarks by looking further ahead and beyond the near term challenges. To reiterate one of my opening comments, our optimism about the long-term prospects for our Company remains intact. We operate in a cyclical industry with which necessitates making tough decisions at times as we manage the things within our control as a company and a management team we've been here before and the actions that we announced today have been designed to preserve our flexibility to capitalize on future recovery of the market, and we expect the market to recover. Why do we remain confident while cyclical? We also operate in an industry with significant long-term tailwinds, decarbonization efforts are driving a transition in steel with electric arc furnaces continuing to increase share of total steel production.

謝謝，凱瑟琳。到目前為止，我們已經討論了當前的環境以及我們如何應對。讓我在準備好的發言的最後幾分鐘展望未來並超越近期的挑戰。重申我的開場白之一，我們對公司長期前景的樂觀態度依然不變。我們在一個週期性行業中運營，有時需要做出艱難的決定，因為我們作為一家公司和管理團隊管理我們控制範圍內的事情，我們以前就在這裡，我們今天宣布的行動旨在保持我們的靈活性利用未來市場的復甦，我們預期市場將會復甦。為什麼我們在周期性的情況下仍保持信心？我們所處的產業也具有顯著的長期優勢，脫碳努力正在推動鋼鐵業的轉型，電弧爐在鋼鐵總產量中的份額持續增加。

The EAF method of steelmaking now accounts for nearly half of global steel production outside of China and an increase from 44% in 2015 with market share growth near in nearly every region. And this trend of YAS. share growth is expected to continue. In fact, we continue to see examples of governments providing incentives to companies to help fund investments in new EAF capacity. This ongoing transition towards EAF steelmaking is expected to drive demand growth for graphite electrodes over the longer term. Overall, considering planned EAF capacity additions based on steel producer announcements, along with production increases at existing EAF plants, we estimate that this would translate to global graphite electrode demand outside of China growing at a 3% to 4% kegger over the next five years. While we've seen a change in the competitive dynamic dynamics of late. As Jeremy indicated, this isn't entirely unexpected at this point in the cycle. We view these as being largely transitory, and we are well positioned to benefit from the long-term demand growth for graphite electrodes to note a few reasons. First, as prior cycles have demonstrated, the anticipated recovery in graphite electrode demand in coming years will help ease the current competitive pricing pressures. As a historical reference point, over the last 20 years, the selling price to our non-LTL volume has averaged approximately $6,000 per metric ton adjusted for inflation, which is significantly above current market prices.

目前，電弧爐煉鋼法佔中國以外全球鋼鐵產量的近一半，比 2015 年的 44% 增加，幾乎每個地區的市佔率都在成長。還有YAS的這個趨勢。預計份額將繼續增長。事實上，我們不斷看到政府向企業提供激勵措施，幫助為新的漁業生態系統方法產能投資提供資金的例子。從長遠來看，向電弧爐煉鋼的持續轉型預計將推動石墨電極的需求成長。總體而言，考慮到根據鋼鐵生產商公告計劃增加的電弧爐產能，以及現有電弧爐工廠的產量增加，我們估計這將意味著中國以外的全球石墨電極需求在未來五年內以3% 至4 % 的速度成長。雖然我們最近看到競爭動態發生了變化。正如傑里米指出的那樣，在周期的這個階段，這並不完全出乎意料。我們認為這些在很大程度上是暫時的，我們處於有利地位，可以從石墨電極的長期需求成長中受益，需要注意幾個原因。首先，正如先前的周期所證明的那樣，未來幾年石墨電極需求的預期復甦將有助於緩解當前的競爭性定價壓力。作為歷史參考點，在過去 20 年中，根據通貨膨脹調整後，我們的非零擔運輸量的平均售價約為每噸 6,000 美元，這明顯高於目前的市場價格。

Second, anticipated demand growth for petroleum needle coke, the raw material that we used to produce graphite electrodes will also present a pricing tailwind to expand on this point. Needle coke demand is expected to accelerate accelerate, driven by its use to produce synthetic graphite for the anode portion of lithium-ion batteries used in electric vehicle market. Growing demand for needle coke should result in elevated needle coke pricing given the high historical correlation between petroleum needle coke pricing and graphite electrode pricing with an inflation adjusted spread that has averaged approximately $3,900 per metric ton over the last 20 years. This trend should translate to higher market pricing for electrodes.

其次，石油針狀焦（我們用於生產石墨電極的原材料）的預期需求成長也將在這一點上帶來價格上漲的推動力。針狀焦的需求預計將加速成長，主要是由於其用於生產電動車市場所用鋰離子電池陽極部分的合成石墨。鑑於石油針狀焦定價與石墨電極定價之間的歷史高度相關性以及過去20 年通膨調整後的價差平均約為每噸3,900 美元，對針狀焦的需求不斷增長應會導致針狀焦定價上漲。這種趨勢應該會轉化為電極較高的市場定價。

Third, in specific, the competition with Chinese with graphite electrode producers, we continue to view their opportunity for competitive inroads in our key markets to be limited over the longer term, the imposition of customs duties and other tariff protections in key EAF steelmaking regions, including the US and the EU, have served to limit the level of imports from China into these imports from China into these regions. Further, a quality gap still exists between Chinese electrodes and Tier one producers, which will become increasingly evident as new EAFs with more demanding applications come online in the coming years. As it relates to China's domestic graphite electrode demand, the country produces approximately 1 billion tons of match 1 billion metric tons of steel on an annual basis with approximately 90% still produced using the traditional method of steelmaking with even a relatively small percentage shift in the output to the more environmentally friendly EAF model. This would absorb a significant level of domestic graphite electrode production, thereby decreasing incentives for them to explore the export markets.

第三，具體而言，在與中國石墨電極生產商的競爭方面，我們繼續認為，從長遠來看，他們在我們的主要市場的競爭機會受到限制，在主要電弧爐煉鋼地區徵收關稅和其他關稅保護，包括美國和歐盟在內的美國和歐盟，一直在限制從中國進口到這些地區的進口水準。此外，中國電極與一級生產商之間仍然存在品質差距，隨著未來幾年應用要求更高的新型電爐上線，這種差距將變得越來越明顯。由於與中國國內石墨電極需求相關，中國每年生產約10億噸，相當於10億噸鋼，其中約90%仍採用傳統煉鋼方法生產，即使比例變化相對較小。輸出到更環保的電爐模式。這將吸收大量國內石墨電極生產，從而減少他們探索出口市場的動力。

Lastly, and specific to GrafTech for all the reasons that Jeremy referenced, we provide a compelling value proposition to our customers and can compete on more than just price. As such, we continue to believe the GrafTech will get through this challenging period emerge as an industry leader and the preeminent supplier of mission critical products to the electric arc furnace industry.

最後，針對 GrafTech，出於 Jeremy 提到的所有原因，我們為客戶提供了令人信服的價值主張，並且不僅僅在價格上競爭。因此，我們仍然相信 GrafTech 將度過這段充滿挑戰的時期，成為業界領導者和電弧爐行業關鍵任務產品的卓越供應商。

Before concluding our prepared remarks, let me transition to a brief update on our efforts towards participation in the development of a Western EV battery supply chain. We continue to see potential long-term value creation opportunities in this space as we possess key assets, resources and know-how to support this industry. Our activities continue to advance in both the areas we have spoken to previously, first, leveraging our assets and technical know-how in the area of petroleum needle coke production. Given the expected demand growth for this key raw material. Second, leveraging our rapid innovation resources and expertise to produce synthetic graphite material for battery anodes. We remain excited about the opportunity and look forward to sharing more as we can.

在結束我們準備好的發言之前，請允許我簡要介紹我們為參與西方電動車電池供應鏈發展所做的努力。我們繼續看到該領域潛在的長期價值創造機會，因為我們擁有支持該行業的關鍵資產、資源和專業知識。我們的活動繼續在我們之前談到的兩個領域取得進展，首先，利用我們在石油針狀焦生產領域的資產和技術知識。鑑於這種關鍵原材料的預期需求增長。其次，利用我們的快速創新資源和專業知識來生產用於電池陽極的合成石墨材料。我們對這個機會仍然感到興奮，並期待盡可能分享更多。

In closing, we remain optimistic about the long-term outlook for our business and our ability to deliver shareholder value. We are an industry leading provider of a consumable product that is mission critical for the growing electric arc furnace method of steelmaking, we possess a distinct set of assets, capabilities and competitive advantages.

最後，我們對我們業務的長期前景以及我們為股東創造價值的能力保持樂觀。我們是業界領先的消耗品供應商，該產品對於不斷發展的電弧爐煉鋼方法至關重要，我們擁有獨特的資產、能力和競爭優勢。

Lastly, as a result of our disciplined capital allocation strategy, we have ample liquidity to navigate the near term. This concludes our prepared remarks. We'll now open the call for questions.

最後，由於我們嚴格的資本配置策略，我們擁有充足的流動性來應對短期需求。我們準備好的演講到此結束。我們現在開始提問。

(Operator Instructions) Matt Vittorioso, Jefferies.

（操作員說明）Matt Vittorioso，Jefferies。

Yes, good morning and thanks for taking my questions. So I appreciate all the color on the steps that you're taking to navigate this market. Tom, I was hoping maybe we could just trying to frame this. You provided some color on expectations around cash costs down low 10s. If I do some rough math, that kind of seems to get you into the high 4,000, maybe 48 hundreds that kind of matches the current spot price or the non LTA realized price you had in the fourth quarter. That's just very rough kind of leads you to a neutral or zero EBITDA kind of environment. Is that sort of what you guys are picturing for 2024 as you navigate cash costs and realized pricing kind of being in the same ballpark?

是的，早上好，感謝您回答我的問題。因此，我很欣賞你們為駕馭這個市場所採取的所有步驟。湯姆，我希望我們可以嘗試框定這個。您對現金成本下降 10 多美元的預期提供了一些解釋。如果我做一些粗略的計算，這似乎會讓你達到 4,000，也許 4800，與當前現貨價格或第四季度的非 LTA 實現價格相符。這只是一種非常粗暴的方式，會導致您進入中性或零 EBITDA 的環境。當你們考慮現金成本並意識到定價處於同一水平時，這就是你們對 2024 年的設想嗎？

Yes, Matt, thanks for the question and appreciate it. And certainly, I think if you apply the current spot price here at the end of the fourth quarter and do the math the way you do. I think that's what it would suggest. But I would also just remind you that that cost guidance also reflects the fact that while we've said that we're going to improve, we're slightly increase sales volume year over year. We still expect to be running at a utilization rate kind of well below kind of normalized capacity. So we still think there's room for cost to come down as we move through as volumes pick up, we expect the cost to navigate down towards the lower 4,000 range over time. But in the current environment at spot pricing is what you said we recognized in the fourth quarter. I think that's a fair statement.

是的，馬特，謝謝你的提問，並表示感謝。當然，我認為如果你應用第四季末的當前現貨價格並按照你的方式進行數學計算。我想這就是它的建議。但我也想提醒您，成本指導也反映了這樣一個事實：雖然我們說過我們會有所改進，但我們的銷量比去年同期略有增加。我們仍然預期利用率將遠低於正常產能。因此，我們仍然認為，隨著銷售量的增加，成本還有下降的空間，我們預計隨著時間的推移，成本將降至 4,000 美元以下的範圍。但在當前環境下，現貨定價是你所說的我們在第四季度認識到的。我認為這是一個公平的說法。

Okay. And then I was hoping you could just talk about working capital. Obviously, you've done a nice job managing working capital throughout 2023 to ease the actually generate cash. Just what's the working capital or inventory opportunity that you see in 2024 on just as we think about liquidity and how that it sort of progresses over the course of the year?

好的。然後我希望你能談談營運資金。顯然，您在 2023 年管理營運資金方面做得很好，以緩解實際產生的現金。當我們考慮流動性時，您認為 2024 年的營運資金或庫存機會是什麼？以及它在這一年中的進展如何？

Yes. On. So we took out just over 100 million of inventory during the year. But we also commented we offset some of the reduction of our inventory on hand with building additional Penn stock, right? So a little bit of offset there. We think there's opportunities with the footprint optimization that we've just outlined to further reduce inventory levels. I'm not certainly to the order of magnitude that we've seen in 2023, but there's some opportunity to to relieve some additional inventory here in 24. That being said, as volumes pick up both on the sales and production side, over the course of the year, you'll get a little bit of a negative impact on working capital. So net-net, fairly balanced from an overall working capital perspective as we go throughout the year.

是的。在。所以我們這一年就拿出了1億多的庫存。但我們也評論說，我們透過建立額外的賓州大學庫存來抵消部分現有庫存的減少，對嗎？所以那裡有一點偏移。我們認為我們剛才概述的足跡優化有機會進一步降低庫存水準。我不確定我們在 2023 年看到的數量級，但 24 年有機會釋放一些額外的庫存。話雖這麼說，隨著銷售和生產方面的銷售量增加，在這一年中，您將對營運資本產生一些負面影響。因此，從我們全年的整體營運資金角度來看，淨淨額相當平衡。

Okay. And I think we've gotten the comment or question from a lot of investors, just given the current liquidity picture and I think you've outlined some nice steps today to manage and preserve liquidity. But as you see things today, any reason to raise additional capital or borrow additional money.

好的。我認為，考慮到當前的流動性狀況，我們已經收到了許多投資者的評論或問題，我認為您今天概述了一些管理和保持流動性的好步驟。但正如你今天所看到的，任何籌集額外資金或借入額外資金的理由都是如此。

Now in the context of having $290 million of liquidity today?

現在擁有 2.9 億美元的流動性？

Yes.

是的。

I mean, you said at the end there right, we ended the year with $177 million of cash and the availability that's on the revolver. We feel good about the liquidity position and where we stand today. And really it's all in the context of the steps and what we've announced this morning with the idling of St. Mary's, the rationalization of the rest of our footprint as well as kind of the corporate and the overhead side of the business taking a hard look at that as well. We think all of those steps really position us well to manage in the near-term environment.

我的意思是，你在最後說過，我們在這一年結束時擁有 1.77 億美元的現金以及左輪手槍上的可用資金。我們對流動性狀況以及我們今天的處境感到滿意。事實上，這一切都是在我們今天早上宣布的步驟和我們宣布的聖瑪麗的閒置、我們其餘足跡的合理化以及公司和業務管理方面的合理化的背景下進行的。也很難看。我們認為所有這些步驟確實使我們能夠很好地應對短期環境。

Helpful. Last one for me. If I could just squeeze it in the other conversation we have a lot is just around customer relationships and it's contracting as it pertains to customers that have rolled off of those long-term agreements and maybe there being some ill will or just bad taste and certain customers miles post having those long-term agreements in place that were at higher prices. And I'm sure you're not going to provide specifics on conversations, but any commentary or feel or body language you can give us around like is that a persistent problem? Or are you making progress in sort of bridging that, that gap with customers. You talked about the long-term opportunity here, which seems pretty positive assuming you can and sort of get get customers back in your good graces So just any color or thoughts on that would be really helpful. Thanks.

有幫助。最後一張給我。如果我能把它擠到其他談話中，我們有很多只是圍繞客戶關係，它正在收縮，因為它涉及那些已經退出這些長期協議的客戶，也許有一些惡意或只是壞品味和某些客戶里程發布了那些價格較高的長期協議。我確信你不會提供對話的具體細節，但你可以向我們提供的任何評論、感覺或肢體語言，例如這是一個持續存在的問題嗎？或者你在彌合與客戶之間的差距方面是否取得了進展。您談到了這裡的長期機會，假設您可以並讓客戶重新獲得您的青睞，這似乎非常積極，因此任何顏色或想法都會非常有幫助。謝謝。

Yes, Matt, good question. And I know we're not going to comment on any particular customer interactions or relationships but I would say we went into the 24 negotiation process, which continues very it's ongoing throughout the year with a pretty difficult macro backdrop that we've talked to. And I think we're pretty pleased with the way that it's played out in terms of the level of engagement with customers, both in the Americas as well as in Europe and the rest of the world for that matter. So generally speaking, very pleased with where our customer relationships stand, and we're going to continue to focus on those customers where they value the long-term relationship and the value proposition that we bring to the table. It's the technical services. It's the continuous month furnace monitoring that we offer, those customers that value that are the customers that we build these relationships with and we're having the most success with. So we're pleased with where our customers stand at the moment.

是的，馬特，好問題。我知道我們不會對任何特定的客戶互動或關係發表評論，但我想說我們進入了 24 小時談判流程，該流程全年持續進行，我們已經討論過相當困難的宏觀背景。我認為我們對與客戶的互動程度感到非常滿意，無論是在美洲、歐洲或世界其他地區。所以總的來說，我們對我們的客戶關係現狀非常滿意，我們將繼續關注那些重視長期關係和我們帶來的價值主張的客戶。就是技術服務。這是我們提供的連續一個月的熔爐監控，那些重視的客戶是我們與之建立這些關係並且我們取得最大成功的客戶。因此，我們對客戶目前的狀況感到滿意。

Okay, great. Thanks for the time.

好的，太好了。謝謝你的時間。

I appreciate it.

我很感激。

Thank you.

謝謝。

Bill Peterson, JPMorgan.

比爾彼得森，摩根大通。

Yeah, hi. Good morning.

是的，嗨。早安.

Good morning, Bill.

早安，比爾。

Thanks for taking the questions. Yes, thanks. I guess how should we think about the shape of shipments as you see it today as we think about throughout 2024 on masking in the context of one of your Tier one peers now that they provide us some sort of sales outlook and expect the first half of 24 to decline versus the second half of 23, but also decline again in the second half of 24 relative to the first half. And I'm not really sure what their assumptions are on pricing, but they seem to indicate there's no expectation of improvement, at least from a shipment profile in the back half of the year. So just kind of wanted to get a view on how you're thinking about that?

感謝您提出問題。對了謝謝。我想我們應該如何考慮您今天看到的出貨量形狀，因為我們在您的一級同行之一的背景下思考2024 年全年的屏蔽問題，因為他們為我們提供了某種銷售前景，並預計上半年24日較23年下半年下降，但24日下半年相對於上半年也再次下降。我不太確定他們對定價的假設是什麼，但他們似乎表明沒有改善的預期，至少從今年下半年的出貨情況來看是如此。所以只是想了解一下您對此有何看法？

Yes, it's really tough to comment on somebody else's shipping patterns and the way they've contracted and the way that they manage kind of their customer relationships or how they do that. I think as we look out in the '24, as we've commented without providing specific numbers, we do anticipate an increase, modest increase in sales volume next year, and we'd expect sales to be in line Q1 from where we are we did in Q4 and then the new year will progress from there. I think as we look out longer as we head into 2025, we are anticipating volumes to continue to pick up and some months of market recovery.

是的，很難評論別人的運輸模式、他們簽訂合約的方式、他們管理客戶關係的方式或他們的做法。我認為，當我們展望 24 年時，正如我們在未提供具體數字的情況下所評論的那樣，我們確實預計明年的銷量將略有增長，並且我們預計銷量將與第一季的情況一致我們在第四季做到了，然後新的一年將從那裡開始。我認為，隨著我們展望 2025 年，我們預計銷量將繼續回升，市場將出現幾個月的復甦。

Okay. Thanks for that. And I guess from your vantage point against some of our peers industry are responding in terms of supply. That appears directionally at a few of the peers are in fact reducing output, but they also have higher utilization than GrafTech. So I guess what is the risk to your share or may maybe continued price the pricing environment given that your peers are?

好的。感謝那。我想從你的角度來看，我們的一些同行產業正在對供應做出反應。這似乎是一些同行實際上正在減少產量，但它們的利用率也高於 GrafTech。所以我猜你的股票面臨的風險是什麼，或者考慮到你的同行，可能會繼續定價環境？

We're not really trimming capacity, it doesn't appear to be trimming capacity as much as you are.

我們並不是真正在削減容量，它似乎沒有像你那樣削減容量。

Yes. I mean, I think we again, are focused on taking the steps that we believe are right for GrafTech as a business that will not only position us best from a cost perspective, utilize our most efficient assets in the near term, but also allow us to continue to deliver electrodes to our customers in all regions. And we think the plans that we've laid out allow us to do that and absent of what our competitors are doing and what their drivers are in terms of their own respective business. But right now, I would generally say everybody's probably operating at less than optimal utilization levels and we're no different.

是的。我的意思是，我認為我們再次專注於採取我們認為對GrafTech 作為企業來說正確的步驟，這不僅將使我們從成本角度處於最佳位置，在短期內利用我們最高效的資產，而且還使我們能夠繼續為所有地區的客戶提供電極。我們認為，我們制定的計劃允許我們做到這一點，而無需考慮我們的競爭對手正在做什麼以及他們各自業務的驅動因素。但現在，我通常會說每個人的營運效率可能都低於最佳利用率水平，我們也不例外。

Okay. It sounds like you're comfortable with your cash position for the year. But I guess if demand and shipments were, I guess, to take another leg down or declined significantly, are you evaluating or are there other liquidity of alternatives such as asset sales, maybe secured debt issuance or anything else that could be on the table of shipping shipping is actually progressed worse? Just trying to get a sense of what alternatives you have?

好的。聽起來您對今年的現金狀況感到滿意。但我想，如果需求和發貨量再次下降或大幅下降，您是否正在評估或是否有其他替代方案的流動性，例如資產出售，可能是擔保債務發行或其他可能出現的問題航運業實際上進展更糟嗎？只是想了解您有哪些選擇？

Yes. I mean, you know, there's always the risk that the market continues to move sideways or down further at this point in time, we have a fair portion of our order book lock for the year, just given the negotiation process that we just went through. And that certainly is something that we took into account as we we looked at the cost, the cost rationalization and footprint optimization program that we just went through. So again, we feel good about the steps we're taking and how it positions us this year on and you don't the world will play out as the world plays out going forward.

是的。我的意思是，你知道，在這個時間點上總是存在市場繼續橫盤整理或進一步下跌的風險，考慮到我們剛剛經歷的談判過程，我們今年的訂單簿有相當一部分被鎖定。這當然是我們在考慮成本、成本合理化和我們剛剛經歷的佔地面積優化計劃時考慮到的事情。再說一次，我們對我們正在採取的步驟以及它對我們今年的定位感到滿意，而且你不知道世界會隨著世界的發展而發展。

Okay, got it. Thanks for that. I'll leave it there. And take it offline. But good luck with navigating the environment here.

好，知道了。感謝那。我會把它留在那裡。並將其離線。但祝您在此的環境中航行順利。

Thanks, Bill.

謝謝，比爾。

Alex Hacking, Citi.

亞歷克斯哈金，花旗銀行。

Yes, good morning, and I apologize if I missed this, but did you provide any color on the pricing outlook for the first half of this year? Thanks.

是的，早上好，如果我錯過了這一點，我深表歉意，但是您是否提供了有關今年上半年定價前景的任何資訊？謝謝。

Yes, Alex, thanks. And appreciate you joining the call, and we haven't provided any outlook for the pricing environment. And frankly, there's no benefit to us in terms of getting into a discussion around where pricing is you can look at pricing what we reported for the fourth quarter and use that if you want.

是的，亞歷克斯，謝謝。感謝您加入電話會議，我們尚未提供任何定價環境的前景。坦白說，圍繞定價進行討論對我們沒有任何好處，您可以查看我們報告的第四季度的定價，如果您願意的話可以使用它。

Okay. Thanks, Tom. And then I guess regarding India and China exports. Yes, I think as you mentioned, you know, Chinese steel production was probably up a little bit last year. Indian steel production was up strongly last year, yet they seem to be exporting more graphite electrodes. Do you have any color on what's happened? So capacity adds there? I guess what's driving the increase in and exports from those regions?

好的。謝謝，湯姆。然後我想關於印度和中國的出口。是的，我認為正如您所提到的，去年中國的鋼鐵產量可能有所上升。印度去年的鋼鐵產量強勁成長，但他們似乎出口了更多的石墨電極。你對發生的事情有什麼看法嗎？那麼容量會增加嗎？我想是什麼推動了這些地區的出口成長？

Yes. So I think our commentary about exports was on the steel side. I think Chinese graphite electrode exports are maybe introducing some pricing pressures in the market, which we talked a little bit about in the third quarter from the year over year, Chinese electrode exports are actually down kind of double digit percentage. Indian exports, again, maybe up slightly year over year. But on a scale, there are a fraction of what the Chinese export market looks like. So So net-net, I don't think there's that much more material being put into the export market. But I think the pricing has been more aggressive, certainly and.

是的。所以我認為我們對出口的評論是針對鋼鐵方面的。我認為中國石墨電極出口可能會給市場帶來一些定價壓力，我們在第三季度談到了這一點，與去年同期相比，中國電極出口實際上下降了兩位數百分比。印度出口可能再次較去年同期小幅成長。但從規模來看，這只是中國出口市場的一小部分。所以，我認為沒有那麼多材料被投入出口市場。但我認為定價肯定更激進。

I'm okay, thanks. So I guess you say you haven't lost market share in India and Chinese material last year. In fact, if anything, you would have gained share against that if exports are down?

我沒事，謝謝。所以我猜你說你去年並沒有失去印度和中國材料的市場份額。事實上，如果有的話，如果出口下降，你會增加份額嗎？

No, I mean is it fair? I don't know if that's the way I would look at it. There are certain areas some in the non-tariff protected regions where you see more activity from those those players in those markets that we otherwise would not want to sell into, and we would otherwise import material into our core markets of the US and the EU.

不，我的意思是這樣公平嗎？我不知道我是否會這麼看。在非關稅保護區的某些領域，您會看到這些市場中的參與者有更多的活動，否則我們不想向這些市場銷售產品，否則我們會將材料進口到我們的美國和歐盟核心市場。

Okay, thanks. And then I guess just finally, any comments around your market share in the US market in particular? I think it's the most attractive market for electrodes. We know that you've potentially lost some market share beginning of last year given the Monterey issues. And so any update on your US market share? Thanks.

好的謝謝。最後，我想您對您在美國市場的市佔率有什麼評論嗎？我認為這是電極最有吸引力的市場。我們知道，由於蒙特利問題，去年年初您可能會失去一些市場份額。那麼你們的美國市佔率有什麼更新嗎？謝謝。

Yes. And I think we commented in the third quarter on this in particular about how the first step for us was to be able to go into the Q4 negotiation window with all of our customers, not just those customers in the US with the ability to commit to volumes for the full year. And we've done that. And as I said earlier in one of my responses to a question, we're very pleased with the way the those negotiations went in the volumes that we were allocated from all of our customers and we don't necessarily give specifics in terms of market share. And but again, the Americas is a substantial part of our business and will continue to be going forward.

是的。我認為我們在第三季對此發表了評論，特別是我們的第一步是如何與所有客戶進入第四季度的談判窗口，而不僅僅是那些有能力承諾的美國客戶全年銷售。我們已經做到了。正如我之前在回答一個問題時所說的那樣，我們對所有客戶分配給我們的談判進行的方式感到非常滿意，並且我們不一定給出市場方面的具體信息分享。但同樣，美洲是我們業務的重要組成部分，並將繼續向前發展。

Okay. Thank you.

好的。謝謝。

Arun Viswanathan, RBC Capital Markets.

阿倫‧維斯瓦納坦 (Arun Viswanathan)，加拿大皇家銀行資本市場部。

Great. Thanks for taking my question. And I guess the first question would be you noted that there's a significant cost per ton reduction. I understand the footprint optimization will help in that. But what kind of utilization rates should we think about as you move through the year and on our math, it would seem that you'd need to get into the 70s or 80s in order to get those that that cost per ton down into the 45 hundred or $5,000 per ton range. Is that required? And I know that you're shutting down St. Marys, but are there greater actions you can take, I mean running at 47%, it would it would imply that there's 50% or so of your capacity that's that's really not being utilized. If yes, would you consider shutting down maybe some of the other plants like Pamplona Calais? Or if you can just walk us through that.

偉大的。感謝您提出我的問題。我想第一個問題是您注意到每噸成本大幅降低。我知道足跡優化將對此有所幫助。但是，隨著一年的推移，我們應該考慮什麼樣的利用率，根據我們的數學計算，似乎需要進入 70 或 80 年代，才能將每噸成本降至 45 左右。每噸100 或5,000 美元不等。有這個要求嗎？我知道你們要關閉 St. Marys，但是你們可以採取更大的行動嗎？我的意思是以 47% 的速度運行，這意味著你們有 50% 左右的容量實際上沒有被利用。如果是，您是否會考慮關閉其他一些工廠，例如潘普洛納加來工廠？或者您可以引導我們完成這個過程嗎？

Yes. Thanks, Arun. And kind of a lot in that question. So if I miss apart, you please let me know. I guess first question with respect to your question on cost and how we get to levels below kind of what we're otherwise guiding to. And remember, that's not all going to come on the back of fixed cost leverage or fixed cost reductions, right? Fixed costs represent roughly 25% or so of our overall cost structure. So any increase in utilization will improve the cost structure, but we do anticipate further improvement from the price of needle coke as well as our other variable costs, right? So we're seeing kind of favorable trends in the market for all of those. And those will continue to to benefit us going forward, particularly in terms of energy prices in Europe.

是的。謝謝，阿倫。這個問題涉及很多。所以如果我錯過了，請告訴我。我想第一個問題是關於你的成本問題以及我們如何達到低於我們原本指導的水平的問題。請記住，這並不是全部靠固定成本槓桿或固定成本削減來實現，對吧？固定成本約占我們整體成本結構的 25% 左右。因此，利用率的任何增加都會改善成本結構，但我們確實預計針狀焦的價格以及我們的其他可變成本將進一步改善，對吧？因此，我們看到市場上所有這些都出現了有利的趨勢。這些將繼續使我們受益，特別是在歐洲的能源價格方面。

In terms of I think your second part of the question was around would we shut another plant down again from the actions we've taken today with St. Mary's in our corporate overhead. It's predicated on our view of the world and our understanding of our business in market and don't necessarily, you know, let me say it this way we think we've taken the steps needed to be successful to navigate through this trough and get to the other side when we anticipate the market picking back up us running our plants in Europe and in Monterrey are important in our ability to deliver all of the products and make deliver on our commitments to our customers, but as well as being able to otherwise capitalize when the market picks up longer term, which again and we've said it a few times, we firmly believe that the market will pick up as we move forward both because of the decarbonization of steel as well as the demand for needle coke through to the EV market. So we're going to continue to run those assets. And but we're going to run them as efficiently as we can and the only refinement that has.

就我認為問題的第二部分而言，我們是否會根據今天對聖瑪麗在公司管理費用中採取的行動再次關閉另一家工廠。它基於我們對世界的看法以及我們對市場業務的理解，不一定，你知道，讓我這樣說，我們認為我們已經採取了成功渡過這個低谷並獲得成功所需的步驟。另一方面，當我們預計市場會恢復我們在歐洲和蒙特雷運營工廠的能力時，這對於我們交付所有產品並兌現我們對客戶的承諾的能力很重要，但也能夠以其他方式從長遠來看，我們堅信市場將會回暖，因為鋼鐵的脫碳以及針狀焦的需求。到電動車市場。因此，我們將繼續經營這些資產。但我們將盡可能有效率地運行它們，也是唯一的改進。

I'm sorry about that as unmute mute. Just one other question. Just could you elaborate on your plans to pursue commercialization of your needle coke into the EV market. Is there any support you can get from higher rates or any other strategic initiatives there?

我很抱歉取消靜音。還有一個問題。您能否詳細說明將針狀焦商業化進入電動車市場的計畫。您可以從更高的利率或任何其他策略舉措中獲得任何支持嗎？

Thanks, Arun. I'll let Jeremy take that one.

謝謝，阿倫。我會讓傑里米拿走那個。

Yes, right. So a couple of a couple of things there. First of all, you'll recall that as we previously noted in July, we did file a permit application to significantly expand the capacity of production at Seadrift excuse me. And at the time we said that we would be able to add that if we went forward with the project, we would have the ability to increase the 140,000 tonne nameplate capacity by about 40% through a combination of calcine and pre calcine needle coke and so at the time we said that we would we would anticipate that process taking about a year and we don't have any reason to think that the permitting process will be any longer or shorter than that at this point. So continuing, we're continuing down that path.

是的，沒錯。所以有幾件事。首先，您會記得，正如我們之前在 7 月所指出的，我們確實提交了一份許可證申請，以大幅擴大 Seadrift 的生產能力，抱歉。當時我們說，我們可以補充說，如果我們繼續推進該項目，我們將有能力通過煅燒和預煅燒針狀焦的組合，將 14 萬噸銘牌產能增加約 40%。當時我們表示，我們預計該過程需要大約一年的時間，我們沒有任何理由認為許可程序會比此時更長或更短。因此，我們將繼續沿著這條路走下去。

In terms of actually commercializing in engaging with that with potential customers. We continue down that path, both from a needle coke as well as a graphic position perspective, we have as we have done trials with several customers and AMP, and I would say that the pace of activity there is increasing. And so we feel good about where we're at, but and nothing to nothing to announce at this point.

就與潛在客戶的互動進行實際商業化而言。我們繼續沿著這條道路走下去，無論是從針狀焦還是圖形位置的角度來看，我們已經與幾個客戶和 AMP 進行了試驗，我想說那裡的活動步伐正在加快。因此，我們對自己所處的位置感覺良好，但目前沒有什麼可以宣布的。

Great. And then just lastly, on the first, just wanted to ask again on that issue of potential electrode substitutes or of competition from Chinese and Indian electrodes. Presumably during the shutdown at Monterrey, there was some potential of your customers to maybe source electrodes from from other suppliers? What's the strategy to kind of get back that those volumes? I know you said in other cases, there's a value proposition and service that you provide, but it would appear that just given the pricing environment, that price would be the main lever to trying to get back from that share. Maybe just elaborate on some of the other services that you think would be helpful in regaining that share? Thanks.

偉大的。最後，首先，我想再次詢問潛在的電極替代品或來自中國和印度電極的競爭問題。想必在蒙特雷停工期間，您的客戶有可能從其他供應商採購電極嗎？收回這些銷售量的策略是什麼？我知道您在其他情況下說過，您提供了價值主張和服務，但似乎在考慮到定價環境的情況下，該價格將成為試圖從該份額中收回的主要槓桿。也許只是詳細說明您認為有助於重新獲得這一份額的其他一些服務？謝謝。

Yes, Arun, I mean, I think ultimately getting commercial relationship, right? It's the relationship and it's providing a compelling value proposition, not only through a quality product, which again, we think our electrodes are the best in the world in terms of quality, but it's also what else you offer your customers and how they view you as well. And I think it's important to remember that especially in the US market, in particular on prices and always the bottom line in terms of the determination, just given the fact that the US mills are still running at very healthy utilization rates, any sort of quality issues or breakage or interruption to their furnaces, ultimately cost them money. They're going to continue to err on the side of producing quality electrodes, and that's what we remain focused on.

是的，阿倫，我的意思是，我認為最終會建立商業關係，對嗎？這就是這種關係，它提供了令人信服的價值主張，不僅透過優質產品，我們再次認為我們的電極在品質方面是世界上最好的，而且還體現了您為客戶提供的其他內容以及他們對您的看法以及。我認為重要的是要記住，特別是在美國市場，特別是在價格方面，並且始終是決定的底線，考慮到美國鋼廠仍然以非常健康的利用率運行，無論質量如何熔爐出現問題、破損或中斷，最終讓他們損失了金錢。他們將繼續在生產優質電極方面犯錯，而這正是我們仍然關注的重點。

Well, thanks a lot. Thank you.

嗯，非常感謝。謝謝。

Thank you.

謝謝。

[Craig from Imperial Capital]

【來自帝都的克雷格】

Hello, everyone. Thank you for the call. I'm just a few follow-ups. If I may on the competitive landscape, I completely recognize it's not all about price and cost can be a moving target. But where do you think your three plants are on the cost curve, maybe just which quartile do you think they are in yet?

大家好。謝謝您的來電。我只是一些後續行動。如果我可以在競爭格局中，我完全認識到這並非全是價格和成本可以成為一個移動目標。但您認為您的三個工廠在成本曲線上處於什麼位置，也許您認為它們目前處於哪個四分位數？

Sorry, I ahead outside the US, I thought you had a first further question or more more to that yes, again, we don't necessarily break our plants down separately. We look at the overall manufacturing footprint footprint as kind of a global net network. And we think we're very cost competitive we're exactly on the cost curve. I won't speculate, but we think we're well positioned from a cost perspective. And certainly as we continue to drive up our utilization at the plants that just makes those plants even more competitive given their overall size and scale.

抱歉，我在美國境外，我想您還有第一個或更多問題，是的，我們不一定要單獨分解我們的工廠。我們將整體製造足跡視為一種全球網路。我們認為我們的成本非常有競爭力，我們正好處於成本曲線上。我不會猜測，但我們認為從成本角度來看我們處於有利位置。當然，隨著我們繼續提高工廠的利用率，考慮到它們的整體規模和規模，這只會使這些工廠更具競爭力。

Got it. Thank you. And with respect to competitors' idling electrode capacity is can you expand on that or do you have any any estimates of what what might be happening on that front?

知道了。謝謝。關於競爭對手的閒置電極容量，您能否對此進行擴展，或者您對這方面可能發生的情況有任何估計嗎？

I can't comment on what our competitors are doing. It would just be pure speculation, but if they want idle capacity, I'm okay, I'm okay with that.

我無法評論我們的競爭對手正在做什麼。這只是純粹的猜測，但如果他們想要閒置產能，我沒問題，我同意。

Okay, great. Thanks. On a last call, you mentioned that China was limiting the export of synthetic graphite is that any comments on that front?

好的，太好了。謝謝。在上次通話中，您提到中國限制合成石墨的出口，對此有何評論？

Yes. So I think I think the specific comment, what I had to do is synthetic graphite for use in anode materials and a it is kind of a recognition of the value of synthetic graphite as we start seeing further electrification of the fleet. And so and that continues to be continues to be the case perhaps a restricting or at least there at least requiring licenses from the producers before they're allowed to export that material. And you say now it's not something that we've got direct experience with. But we do know that that is a key driver of potential exports from there and kind of a recognition of the importance of synthetic graphite in the in the overall electric vehicle supply chain.

是的。因此，我認為我認為具體的評論是，我必須做的是用於陽極材料的合成石墨，當我們開始看到車隊進一步電氣化時，這是對合成石墨價值的認可。因此，這種情況仍然存在，這可能是一種限制，或至少要求生產商在允許出口該材料之前獲得許可證。你現在說這不是我們有直接經驗的事。但我們確實知道，這是那裡潛在出口的關鍵驅動力，也是對合成石墨在整個電動車供應鏈中重要性的認知。

Great, thank you. And on Seadrift, how much would a 40% increase in capacity costs?

太好了謝謝。而在 Seadrift 上，容量增加 40% 會花費多少成本？

Yes. So we haven't provided a specific number, but what we've guided to in the past is that a full replication of Seadrift would be north of $750 million and the the replication or the addition of that 40% isn't linear, right? If it's not 40% of seven 50, we can do it much more efficient than that. So yes, got it.

是的。所以我們沒有提供具體的數字，但我們過去的指導是，完整複製《Seadrift》將花費 7.5 億美元以上，而複製或增加這 40% 並不是線性的，對吧？如果不是7個50的40%，我們可以做得比這更有效率。所以是的，明白了。

Super helpful. Last one on the order book, how much have you sold for fiscal 20 for how much volume?

超有幫助。訂單簿上的最後一項，20 財年的銷售量是多少？

Yes. So we're at, but we haven't provided the exact numbers in terms of what total volume we expect for the full year. But we're we're well over 50% committed at this point and into it for the first quarter.

是的。所以我們已經做到了，但我們還沒有提供全年預期總銷量的確切數字。但我們目前已經完成了超過 50% 的承諾，並將在第一季投入使用。

For the full year?

全年？

For the full year.

全年。

Great. Thank you very much. Appreciate it.

偉大的。非常感謝。欣賞它。

Thanks.

謝謝。

Curt Woodworth from UBS.

瑞銀集團的科特·伍德沃斯。

Yeah, good morning, Tim. So just wanted to follow and Kurt on. So in terms of cracking the code around sort of the EV anode market, right? You have PSX that signed some deals with bottlenecks on the coke side. You've got some a lot of and EV anode development underway. And so on the one hand, you have competitive advantage on the petroleum coke side going into synthetic. And then you also have capability just on the pure equipment machining material process side of the business. So I guess the question is what where do you think the value in use is the most compelling in your portfolio, do you think it's more processing on the coke side? And then how should we think about like next steps on? Is it more likely that you would partner with someone to potentially expand the drift or and you have access to machining capacity that can be utilized to make synthetic. It's hard for us to really frame kind of the relative economics? And I know that it's early stages, but anything you could and help us think about would be greatly appreciated. Thanks.

是的，早上好，提姆。所以只想跟隨科特繼續前進。那麼，就破解電動車陽極市場的密碼而言，對嗎？PSX 簽署了一些針對焦炭方面瓶頸的協議。您正在進行大量電動車陽極開發。因此，一方面，您在合成石油焦方面具有競爭優勢。然後，您還擁有業務的純設備加工材料工藝方面的能力。所以我想問題是，您認為您的投資組合中哪裡的使用價值最引人注目，您認為更多的是焦炭方面的加工嗎？那我們應該如何考慮下一步？您是否更有可能與某人合作以擴大漂移，或者您可以獲得可用於製造合成材料的加工能力。我們很難真正建構相對經濟學的框架嗎？我知道現在還處於早期階段，但如果您能提供任何幫助我們思考的信息，我們將不勝感激。謝謝。

Yes. So let me start and then Jeremy, I'll ask you to chime in as well. And you know, the two areas that I commented on in particular, where we see the opportunity as it relates to us, is utilization of our graph innovation assets as well as our expertise and Seadrift as a facility, whether as it is constructed today or if we were to pursue an expansion on both of those are pretty compelling because both sets of assets are really dual use assets, right? The process for graphite anode material isn't really any different than the process for creating electrodes that we do and have been doing for decades and decades. So really, it's an opportunity for us to not only maximize our utilization of our assets, but also there's an arbitrage opportunity to go after the markets that have the best margin longer term?

是的。讓我開始吧，然後傑瑞米，我也會請你插話。你知道，我特別評論的兩個領域，我們看到與我們相關的機會，是利用我們的圖形創新資產以及我們的專業知識和 Seadrift 作為設施，無論是今天建造的還是如果我們要對這兩套資產進行擴展，那是非常引人注目的，因為這兩套資產實際上都是雙重用途資產，對嗎？石墨陽極材料的工藝與我們幾十年來一直在做的電極製造過程沒有任何不同。那麼，這真的是我們的一個機會，不僅可以最大限度地利用我們的資產，而且還有一個套利機會，可以追逐長期利潤率最高的市場？

Yes, in the short run rate, there's really no benefit or upside in 24, right? These are all kind of longer-term opportunities in place for us, but but still are certainly exciting ventures as we head out the way we think about it from a balance sheet perspective and what the construct looks like there's a dozen different ways that this could play out or more than a dozen different ways this could play out. But but certainly given kind of the challenging environment right now, we wouldn't do this on our own in most cases, right. Given the capital outlay or any sort of significant expansion of Seadrift, we wouldn't be in a position nor would we want to take on that, that cost on our own. Jeremy, do you want to add to that?

是的，從短期來看，24 確實沒有任何好處或上升空間，對嗎？這些對我們來說都是長期的機會，但仍然是令人興奮的冒險，因為我們從資產負債表的角度出發思考它，以及結構是什麼樣的，有十幾種不同的方式可以實現這一點或者有十幾種不同的方式可以實現這一點。但當然，考慮到目前充滿挑戰的環境，在大多數情況下我們不會自己這樣做，對吧。考慮到 Seadrift 的資本支出或任何形式的重大擴張，我們沒有能力也不想獨自承擔這一成本。傑里米，你想補充嗎？

Yes, I think I think you've hit the key points, Tim this is this is an opportunity that will be comparatively small in the near term, thinking 2024. And as we accelerate through 2025 and into a later the latter part of the decade is really when we see the Western supply chains developing it and are seeking to be a participant.

是的，我想你已經抓住了關鍵點，蒂姆，這是一個機會，但在短期內相對較小，考慮到 2024 年。隨著我們加速到 2025 年並進入這個十年的後半段，我們實際上會看到西方供應鏈正在開發它並尋求成為參與者。

Okay. And then in terms of needle coke in the past, you've commented on third party pricing data that you have. Can you give us a sense for where you think needle coke is at? And then I know you're hesitant to provide any commentary on pricing for electrodes, but directionally speaking, order of magnitude, should we think that your 1Q non non LTA price will fall similarly in fashion as the last Q on Q or any comments would be helpful. Thanks.

好的。然後就過去的針狀焦而言，您對所擁有的第三方定價資料進行了評論。您能否告訴我們您認為針狀焦的位置？然後我知道您對提供有關電極定價的任何評論猶豫不決，但從方向上來說，數量級，我們是否應該認為您的 1Q 非非 LTA 價格會像 Q 上的最後一個 Q 或任何評論一樣下降樂於助人。謝謝。

Yes. So let me start on the electric side, and then I'll let Jeremy comment on the needle coke. Yes, we're not going to provide kind of any sort of specific outlook, whether directional or not beyond the macro kind of commentary we provided, right. We're still negotiating orders on a daily basis and it doesn't benefit us to signal where we think those prices are going to go.

是的。讓我從電動方面開始，然後讓傑里米評論針狀焦。是的，我們不會提供任何具體的前景，無論是方向性的還是超出我們提供的宏觀評論的，對吧。我們仍在每天協商訂單，表明我們認為這些價格將走向何方對我們沒有好處。

And if we look at to look at needle coke, we did see some further softening of the needle coke market. Again, we rely on some import export data to tell us where the market's trading, and that does tend to lag by a couple of months, but we did see Q4 spot pricing for needle coke in the $1,300 range, which was a further decline from from where we were in the third quarter. But this is something that is a very highly volatile market. We can that we can see in the recent past prices as high as $3,000 a ton in 2022 when in fact, they were closer to $1,000 the year before that. So where it's pretty volatile, we still believe in the long-term trends on needle coke, but really the softness right now, I think is a reflection of the soft graphite electrode market without an offset in the form of the expanding Western EV supply chain yet.

如果我們觀察針狀焦，我們確實看到針狀焦市場進一步疲軟。同樣，我們依靠一些進出口數據來告訴我們市場的交易情況，這往往會滯後幾個月，但我們確實看到第四季度針狀焦現貨定價在 1,300 美元範圍內，比去年同期進一步下降。從我們第三季的情況來看。但這是一個非常不穩定的市場。我們可以看到，最近的價格在 2022 年高達每噸 3,000 美元，而事實上，前一年價格接近 1,000 美元。因此，在波動相當大的情況下，我們仍然相信針狀焦的長期趨勢，但實際上目前的疲軟，我認為是軟石墨電極市場的反映，沒有以不斷擴大的西方電動車供應鏈的形式抵消然而。

And would you would your captive cost as Seadrift be below as well, below 1,000?

您希望 Seadrift 的自保成本也低於 1,000 嗎？

Yes. So again, we didn't we haven't historically given a lot of detail on Seadrift because we do see it as a competitive advantage, a competitive advantage for us, even in this sort of needle coke market, given the quality of the Seadrift needle coke, it is still cost competitive in this market.

是的。再說一遍，我們歷史上並沒有提供有關Seadrift 的大量細節，因為我們確實將其視為一種競爭優勢，即使在這種針狀焦市場中，考慮到Seadrift 的質量，這對我們來說也是一種競爭優勢。針狀焦在這個市場上仍然具有成本競爭力。

Thank you very much.

非常感謝。

Thanks.

謝謝。

Abby Landa, Bank of America.

艾比·蘭達，美國銀行。

Good morning. Thanks for squeezing me in just a few questions for me. I kind of want to maybe touch on for regional differences, what you're seeing and kind of on the outlook side, primarily between U.S. and Europe. Like just what do you see in terms of competition differences between those two areas, maybe how it relates to what you're seeing graphite electrode pricing there and kind of maybe a sense of your capacity utilization by regions? Thanks.

早安.感謝您向我提出幾個問題。我想談談地區差異、你所看到的以及前景上的差異，主要是美國和歐洲之間的差異。就像您對這兩個領域之間的競爭差異有何看法，也許它與您所看到的石墨電極定價有何關係，以及您對各地區產能利用率的了解？謝謝。

Yes, thanks, Dave. And in terms of the outlook by region again, I mean, it really follows the macro story more broadly, right? The US has remained to be a fairly healthy market for U.S. steel utilization rates continue to be in the mid 70s. Europe is a market that is certainly more challenged from an economic standpoint, I think capacity utilization in Europe, it ended the year in the 50% or 53% range. So there, thereby you can kind of deduce kind of the overall quality or intensity of those markets.

是的，謝謝，戴夫。再次就各地區的前景而言，我的意思是，它確實更廣泛地遵循宏觀故事，對吧？美國仍然是一個相當健康的市場，美國鋼鐵利用率繼續保持在 70 年代中期。從經濟角度來看，歐洲肯定是一個面臨更多挑戰的市場，我認為歐洲的產能利用率，年底在 50% 或 53% 的範圍內。因此，您可以由此推斷出這些市場的整體品質或強度。

In terms of other competition from, you know, we do have tariff protections in the US and in Europe on U.S. where there's tariffs in place against Chinese imports in Europe. It's both the Indian and Chinese imports. So some of the markets are kind of where they're at. Again, capacity utilization. We look at our network certainly I have and will continue to going forward as a global manufacturing footprint. So we don't provide kind of capacity utilization by plant. You don't I don't think is really relevant in terms of how we look at our business.

就其他競爭而言，我們在美國和歐洲確實有關稅保護，美國對歐洲的中國進口產品徵收關稅。這是印度和中國進口的。所以有些市場就在他們所處的位置。再次，產能利用率。我們的網路確實已經並將繼續作為全球製造足跡向前發展。因此，我們不提供工廠的產能利用率。我不認為這與我們如何看待我們的業務真正相關。

Is that non-Tier one is competition kind of different in Europe versus the U.S. or the intensity of it and its impact on pricing. Do you notice any differences or not?

歐洲與美國的非一級競爭是否有所不同，或者其強度及其對定價的影響是否有所不同？您是否注意到任何差異？

No. I mean, I you don't see much of a presence in Europe of either the Chinese or the Indians, right. That's the your Tier one players are the ones that are there are for the most part, the incumbents in that market. You do see a small Indian presence in the US, but I don't know if I would say that the intensity is any different.

不。我的意思是，你在歐洲看不到多少中國人或印度人，對吧。這就是您的一級參與者，其中大部分是該市場的現有參與者。你確實看到印度在美國有少量存在，但我不知道我是否會說強度有什麼不同。

Right, got it. And then kind of on your view on your OR cost rationalization and footprint plan, you kind of mentioned on this, the third point, the operating at reduced levels, and I think you kind of mentioned taken your from 200 to 200, 78 times. Can you just walk us through that, how you're thinking about implementing that and how you expect that different kind of over the year?

對了，明白了。然後，關於您對手術室成本合理化和足跡計劃的看法，您提到了第三點，即降低水平的運營，我認為您提到了從 200 到 200，78 次。您能否向我們介紹一下您是如何考慮實施該計劃的，以及您對這一年的不同情況有何期望？

Yes. So really, there's there's three things there on. One is the idling of St. Mary's, right? So we're taking down most of the production activities at our St. Mary's location. We also looked at all of our assets across the again, our entire footprint of assets and said, which are the ones that are most efficient and how can we best optimize utilization of our assets. So there's another subset of assets in the other plants that we're continuing to run and that that will stop running and won't otherwise consider those as part of our productive capacity. The combination of those two things and the remaining footprint is what will inform the 178 million sorry, 178,000 metric ton capacity that we'll measure our utilization against going forward with respect to the commentary around matching our production of our operating footprint relative to ARM commercial demand. Again, it's the 178,000 tons that are part of our capacity, we will we will scale our production to our demand, right? We need to be conscious of our working capital where we on a run as efficiently as possible, and we'll continue to operate much like we've done here in 23 where and we've scaled back operations at various points in time to ensure that we're in alignment with overall demand.

是的。確實，那裡有三件事。一是聖瑪麗的閒置吧？因此，我們將取消聖瑪麗工廠的大部分生產活動。我們也全面審視了我們的所有資產，我們的整個資產足跡，並表示哪些是最有效的，以及我們如何才能最好地優化我們的資產的利用率。因此，我們正在繼續運營的其他工廠中還有另一部分資產，它們將停止運行，並且不會將其視為我們生產能力的一部分。這兩件事和剩餘足跡的結合將決定 1.78 億噸產能，抱歉，178,000 公噸產能，我們將根據有關將我們的生產與 ARM 商業運營足跡相匹配的評論來衡量我們的利用率。要求。再說一遍，178,000 噸是我們產能的一部分，我們會根據需求擴大生產規模，對吧？我們需要意識到我們的營運資金盡可能高效地運行，我們將繼續像 23 年那樣運營，並且我們在不同時間點縮減了運營規模，以確保我們與整體需求保持一致。

So it seems like you potentially have some room to maybe at all certain assets for longer to kind of better match it. If for some reason, the market takes a further downturn but the right way to maybe look at it?

因此，看起來你可能有一些空間來保留某些資產更長的時間，以便更好地匹配它。如果由於某種原因，市場進一步低迷，但看待它的正確方法是什麼？

Yes. I mean, again, I would say that we've idled the assets that we think best position us to navigate our view on the market as it exists today. And as we look out forward, you certainly we can we can slow down other assets at various points in time during the year. But again, we want to have those assets ready in a position to and begin production or continued production as the market recovers. And as we look out over the long term and my last one. It's kind of a follow-up to some previous questions.

是的。我的意思是，我想說，我們已經閒置了我們認為最適合我們對當今市場進行看法的資產。展望未來，我們當然可以在一年中的不同時間點放慢其他資產的速度。但同樣，我們希望這些資產能夠在市場復甦時準備好開始生產或繼續生產。當我們著眼於長期和我的最後一個目標。這是之前一些問題的後續。

When you think about your liquidity, especially on the cash side, is there like a minimum operating cash number they you'd be comfortable operating?

當您考慮您的流動性時，特別是在現金方面，是否存在您可以輕鬆操作的最低營運現金數量？

Yes. I mean, I think we've said in the past, the 50 million just from an operational standpoint is a very effective or easy number for us to manage the business on. But I think just to overall liquidity, we're sitting again and a very healthy liquidity position as we look out into 2024.

是的。我的意思是，我想我們過去說過，僅從營運角度來看，5000 萬對於我們管理業務來說是一個非常有效或容易的數字。但我認為，就整體流動性而言，展望 2024 年，我們再次處於非常健康的流動性狀況。

That's it for me. Thank you very much. Thanks a lot.

對我來說就是這樣。非常感謝。多謝。

Thank you. This concludes our question and answer session. I will now hand the call back over to you, Joe Flanagan for closing comments.

謝謝。我們的問答環節到此結束。現在，我將把電話轉回給喬·弗拉納根 (Joe Flanagan)，請您發表結束意見。

Thanks, Dean. And I'd like to thank everyone for your call or your interest in our call today, and we look forward to speaking with everyone next quarter. Have a great day.

謝謝，迪恩。我要感謝大家的來電或對我們今天的電話會議的興趣，我們期待下個季度與大家交談。祝你有美好的一天。

Thank you. That does conclude the conference for today. Thank you all for participating. You may all disconnect.

謝謝。今天的會議到此結束。感謝大家的參與。你們都可以斷開連線。