GrafTech International Ltd (EAF) 2024 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the GrafTech first-quarter 2024 earnings conference call and webcast and conference call. (Operator instructions) This call is being recorded on Friday, April 26, 2024.

早安，女士們先生們，歡迎參加 GrafTech 2024 年第一季財報電話會議以及網路廣播和電話會議。（接線生說明）此通話錄音時間為 2024 年 4 月 26 日星期五。

I would now like to turn the call and turn it over to Mike Dillon. Please go ahead.

我現在想把電話轉給麥克狄龍。請繼續。

Thank you, Constantine. Good morning, and welcome to GrafTech International's first-quarter 2024 earnings call. On with me today are Tim Flanagan, Chief Executive Officer; Jeremy Halford, Chief Operating Officer; and Catherine 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.

謝謝你，康斯坦丁。早安，歡迎參加 GrafTech International 的 2024 年第一季財報電話會議。今天和我一起的是執行長 Tim Flanagan；傑里米·哈爾福德，營運長；臨時財務長凱瑟琳‧德爾加多 (Catherine Delgado)。提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；最後，蒂姆將對我們的前景發表評論。然後我們將開始提問。

As you are likely aware, GrafTech is currently involved in a proxy contest related to its upcoming annual meeting. The purpose of today's call is to discuss our earnings, outlook, and other business updates. As such, we will not be commenting on nor taking questions on the proxy contest during this call. If stockholders have questions on the proxy contest that you would like to discuss with management, please reach out to me after this call.

您可能知道，GrafTech 目前正在參與與其即將舉行的年會相關的代理權競賽。今天電話會議的目的是討論我們的收益、前景和其他業務更新。因此，我們不會在本次電話會議期間就代理權競賽發表評論或提出問題。如果股東對代理權爭奪有疑問並希望與管理層討論，請在本次電話會議後與我聯繫。

Turning to the next slide. As a reminder, some of the matters discussed on this call may include forward-looking statements regarding, among other things, performance, trends, and strategies. 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.

轉到下一張投影片。提醒一下，本次電話會議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 this morning's call. In the first quarter, GrafTech delivered on our outlook and on the initiative discussed on our last earnings call. That said, we are not satisfied nor will we ever be satisfied with breakeven EBITDA performance and negative free cash flow. This is a pivotal time for GrafTech with many challenges still in front of us, yet, we’re up to the challenge and remain excited about the path we are on and the opportunities lie ahead. We are confident that GrafTech can return to the position of generating great value for its shareholders. And on a personal note, I am honored and excited to have the opportunity to lead the company and the talented team.

大家早安，感謝您參加今天早上的電話會議。在第一季度，GrafTech 傳達了我們的前景以及我們上次財報電話會議上討論的舉措。也就是說，我們對損益平衡的 EBITDA 績效和負自由現金流不滿意，也永遠不會滿意。對於 GrafTech 來說，這是一個關鍵時刻，我們仍然面臨著許多挑戰，但我們已經做好迎接挑戰的準備，並對我們所走的道路和未來的機會保持興奮。我們相信 GrafTech 能夠重新回到為股東創造巨大價值的位置。就我個人而言，我很榮幸也很興奮有機會領導公司和有才華的團隊。

As I move into this role on a permanent basis, let me highlight three of the key reasons I'm optimistic about the future of GrafTech. First, we’re confident about our ability to meet needs of our customers now and into the future. We continue to proactively engage with our customers, reinforcing the importance of our relationship with them and a shared view that this is a mutual partnership.

當我永久擔任這一職位時，讓我強調一下我對 GrafTech 的未來樂觀的三個關鍵原因。首先，我們對滿足客戶現在和未來需求的能力充滿信心。我們繼續積極與客戶互動，強化我們與他們關係的重要性，並一致認為這是一種相互的夥伴關係。

In addition, we are investing in our customer value proposition to further differentiate GrafTech from our competitors. Our initiative to expand our product offerings by adding 800-millimeter supersized electrodes to our portfolio is proceeding well. We’re on track for the initial trials to occur in the third quarter of this year. In addition, we are expanding the breadth of our architect system, building upon our best-in-class technical service capabilities. And with the majority of our original long-term agreements coming to an end, we are broadening our range of contract terms, which can be tailored to meet the needs of our customers.

此外，我們正在投資我們的客戶價值主張，以進一步使 GrafTech 與我們的競爭對手區分開來。我們透過在產品組合中添加 800 毫米超大電極來擴大產品範圍的舉措進展順利。我們預計在今年第三季進行初步試驗。此外，我們正在擴大架構師系統的廣度，以我們一流的技術服務能力為基礎。隨著我們大部分原來的長期協議即將結束，我們正在擴大合約條款的範圍，可以根據客戶的需求進行客製化。

Lastly, on the commercial front. As it relates to the LTAs, we are pleased to recent -- we are pleased to have received the final award in a long-standing and our largest of our LTA arbitrations. In March, the Sole Arbitrator ruled in GrafTech's favor. Importantly, as we turn the page and move forward, we are focused on strengthening relationships with existing customers, while also fostering new ones with prospective customers.

最後，在商業方面。由於它與長期協議有關，我們很高興最近在我們最大的長期協議仲裁中獲得了最終裁決。3 月，獨任仲裁員做出了有利於 GrafTech 的裁決。重要的是，當我們翻過這一頁並繼續前進時，我們專注於加強與現有客戶的關係，同時也與潛在客戶建立新的關係。

Secondly, we have taken the right actions to improve our cost structure, and we’re successfully executing these plans. We are safely and thoughtfully winding down the production activities at St. Marys and are on track to conclude the work by the end of the second quarter.

其次，我們採取了正確的行動來改善成本結構，並且我們正在成功執行這些計劃。我們正在安全、深思熟慮地結束聖瑪麗的生產活動，並預計在第二季末完成工作。

In addition, we have completed the activities related to the reduction in our overhead structure. And while actions that impact employees are never easy, these are the right steps for the long-term health of the company and for the collective benefit of our stakeholders. The steps we are taking to manage working capital levels are evident in the further reduction of inventory during the first quarter. Overall, we are on track to achieve the stated benefits from these initiatives, including the anticipated $25 million of annualized cost savings, comprised of $15 million reduction in our fixed manufacturing costs and $10 million in lower administrative costs.

此外，我們也完成了與減少管理費用結構相關的活動。儘管影響員工的行動絕非易事，但為了公司的長期健康發展和利害關係人的集體利益，這些都是正確的步驟。我們為管理營運資金水準所採取的措施在第一季進一步減少庫存中顯而易見。總體而言，我們預計從這些措施中實現既定的效益，包括預計每年節省 2,500 萬美元的成本，其中固定製造成本減少 1,500 萬美元，管理成本減少 1,000 萬美元。

Third, with our cost savings and optimization initiatives having been designed to preserve our ability to capitalize on long-term industry tailwinds, [we're] actively pursuing growth opportunities. I already spoke to some of the actions we are taking to reinforce customer confidence in our graphite electrode business. As a result, we believe we are well-positioned to benefit as the global steel market inevitably rebounds.

第三，我們的成本節約和優化措施旨在維持我們利用長期行業順風的能力，[我們]正在積極尋求成長機會。我已經談到了我們為增強客戶對我們石墨電極業務的信心而採取的一些行動。因此，我們相信，隨著全球鋼鐵市場不可避免的反彈，我們處於有利地位，能夠受益。

Longer-term, as decarbonization efforts further -- as decarbonization efforts drive a further shift to electric arc furnace steelmaking, this will be supportive of increased graphite electrode demand, and we are poised to capitalize on the anticipated growth. Beyond graphite electrodes, we remain proactive in pursuing opportunities in the battery anode space. We continue to engage with a number of third parties on initiatives, which would leverage GrafTech's unique capabilities related to both needle coke and graphitization.

從長遠來看，隨著脫碳工作的進一步推進，脫碳工作推動進一步轉向電弧爐煉鋼，這將支持石墨電極需求的增加，我們準備充分利用預期的成長。除了石墨電極之外，我們仍然積極尋求電池陽極領域的機會。我們繼續與許多第三方就一些倡議進行合作，這些倡議將利用 GrafTech 在針狀焦和石墨化方面的獨特能力。

Against this backdrop, we have not lost sight of where I started my comments. We are still facing many challenges as the industry remains in a cyclical downturn. While there is much work to be done, we are confident in emerging from this period as a stronger GrafTech.

在此背景下，我們並沒有忘記我的評論是從哪裡開始的。產業仍處於週期性低迷狀態，我們仍面臨諸多挑戰。雖然還有很多工作要做，但我們有信心在這段時期成為更強大的 GrafTech。

Let me now turn it over to Jeremy to provide more color on the current state of the industry and our commercial performance.

現在讓我將其交給 Jeremy，以提供有關行業當前狀況和我們的商業表現的更多資訊。

Thank you, Tim, and good morning, everyone. Before I provide an industry update, I'll start with a brief comment on our safety performance, which is a core value at GrafTech. We are pleased to have ongoing momentum with a first quarter recordable incident rate that showed further improvement over our solid performance in 2023. And I’d like to commend all of our team members for their efforts. While encouraged by this performance, we will not be satisfied until we achieve our ultimate goal of zero injuries.

謝謝蒂姆，大家早安。在提供行業最新動態之前，我將首先簡要評論我們的安全績效，這是 GrafTech 的核心價值。我們很高興能夠保持持續的勢頭，第一季可記錄事故率比 2023 年的穩健表現進一步改善。我要讚揚我們所有團隊成員的努力。儘管受到這一表現的鼓舞，但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 discuss the commercial environment. As you know we operate in a cyclical industry and currently find ourselves in a challenging part of the cycle. The macro environment continues to be impacted by economic uncertainty and geopolitical conflict, which has contributed to the constrained global steel industry. Looking at the numbers, using data published by the World Steel Association earlier this week, on a global basis, steel production outside of China was approximately 213 million tons in the first quarter of 2024. This represents a nearly 4% year-over-year increase with approximately three-quarters of the growth attributable to Turkey and India.

現在讓我轉到下一張投影片來討論商業環境。如您所知，我們在一個週期性行業中運營，目前發現自己處於週期的一個具有挑戰性的部分。宏觀環境持續受到經濟不確定性和地緣政治衝突的影響，導致全球鋼鐵業受到限制。從數字來看，根據世界鋼鐵協會本週稍早公佈的數據，全球範圍內，2024年第一季中國以外的鋼鐵產量約為2.13億噸。這意味著同比增長近 4%，其中約四分之三的增長來自土耳其和印度。

As it relates to Turkey, with the first-quarter 2023 production having been significantly impacted by the earthquake that occurred in February of last year, this year-over-year growth represents a recovery to historic first-quarter norms. Commensurate with the global increase in steel production, the global steel capacity utilization rate outside of China ticked up slightly to 68%.

就土耳其而言，2023 年第一季的產量受到去年 2 月發生的地震的嚴重影響，這一同比增長代表著第一季歷史正常水平的恢復。與全球鋼鐵產量的成長相適應，中國以外的全球鋼鐵產能利用率小幅上升至68%。

Looking at some of our key commercial regions. For North America, steel production was down 2% in the first quarter on a year-over-year basis, reflecting a slight reversal of recent trends in what has been a relatively stable steel market. Steel output in the EU declined 1% as the market remains relatively stagnant, reflecting a weak construction sector and high interest rates that continue to weigh on demand. Further, steel output in the EU remains well below historic production and utilization rates for that region.

看看我們的一些主要商業區域。北美地區第一季鋼鐵產量年減 2%，反映出相對穩定的鋼鐵市場近期趨勢略有逆轉。由於市場仍相對停滯，歐盟的鋼鐵產量下降了 1%，反映出建築業疲軟和高利率持續打壓需求。此外，歐盟的鋼鐵產量仍遠低於該地區的歷史產量和利用率。

These dynamics within the global steel industry have, in turn, resulted in persistent challenges in the commercial environment for graphite electrodes. Specifically, industry-wide demand for graphite electrodes has remained weak, with challenging pricing dynamics persisting in most regions. To expand further, the graphite electrode industry continues to suffer from low-capacity utilization. While our competitors in the graphite electrode industry have also acknowledge near-term industry-wide headwinds, we were the first and thus far only industry participant to announce definitive actions to reduce capacity.

全球鋼鐵業的這些動態反過來又為石墨電極的商業環境帶來了持續的挑戰。具體而言，全產業對石墨電極的需求仍然疲軟，大多數地區的定價動態仍有挑戰。石墨電極產業進一步擴張，產能利用率持續低迷。雖然我們在石墨電極行業的競爭對手也承認整個行業近期面臨的阻力，但我們是第一個也是迄今為止唯一一個宣布削減產能的明確行動的行業參與者。

Conversely, despite the weak demand environment, we continue to see a healthy level of electrodes exported 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 declined further of weight.

相反，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出口的電極保持健康水準。這些通常是價格較低的電極，其價格隨著重量的增加而進一步下降。

As we have spoken to in the past, these export dynamics, we see a knock-on pricing effect in tariff-protected countries, such as within the EU, as Tier 1 competitors have continued to lower prices in these regions to support volume. We’re also seeing this dynamic play out in the US, with prices softening of weight, all of which represent challenges we must manage in the near term.

正如我們過去所談到的，這些出口動態，我們看到了受關稅保護的國家（例如歐盟內部）的連鎖定價效應，因為一級競爭對手繼續降低這些地區的價格以支持銷售。我們也看到這種動態在美國上演，價格權重減弱，所有這些都是我們在短期內必須應對的挑戰。

With that background, let's turn to the next slide for more details on our results. Our production volume in the first quarter of 2024 was 26,000 metric tons. Our sales volume was 24,000 metric tons, a year-over-year increase of 43% and in line with our stated outlook for the first quarter. As a reminder, sales volume for the first quarter of 2023 was significantly impacted by the temporary suspension of our operations in Monterrey, Mexico that occurred in late 2022.

有了這個背景，讓我們轉向下一張投影片，以了解有關我們結果的更多詳細資訊。2024 年第一季我們的產量為 26,000 噸。我們的銷量為 24,000 噸，年增 43%，符合我們對第一季的預期預期。謹此提醒，2023 年第一季的銷售量受到 2022 年底墨西哥蒙特雷業務暫時暫停的嚴重影響。

Shipments for the first quarter of 2024 included 20,000 metric tons of non-LTA sales at a weighted average realized price of approximately $4,400 per metric ton, and approximately 4,000 metric tons sold under our LTAs, at a weighted average realized price of $8,700 per metric ton.

2024 年第一季的出貨量包括 20,000 噸非長期協議銷售，加權平均實現價格約為每噸 4,400 美元，以及根據我們的長期協議銷售的約 4,000 噸，加權平均實現價格為每噸 8,700 美元。

Expanding on our weighted average price for non-LTA sales, this represented a 27% year-over-year decline from the sequential decline from the fourth quarter of 2023 of approximately 8%, reflecting the pricing dynamics I referenced earlier.

擴大非長期協議銷售的加權平均價格，與 2023 年第四季約 8% 的環比下降相比，同比下降了 27%，反映了我之前提到的定價動態。

Net sales in the first quarter of 2024 decreased 2% compared to the first quarter of 2023. The decline in pricing, along with the ongoing shift in the mix of our business from LTA to non-LTA volume, led to the slight year-over-year decline in net sales as these factors were mostly offset by the higher sales volume.

2024年第一季淨銷售額較2023年第一季下降2%。定價的下降，以及我們的業務組合從長期協議向非長期協議的持續轉變，導致淨銷售額同比略有下降，因為這些因素大部分被銷售的增加所抵消。

Looking forward, for the reasons already mentioned, we expect that industry-wide demand for graphite electrodes in the near term will remain weak, and pricing pressures will persist in most regions. In response, we remain selective in the commercial opportunities we're choosing to pursue with a focus on competing responsibly. We expect our sales volume in the second quarter of 2024 to be broadly in line with the sales volume for the first quarter. Further, we continue to expect a modest year-over-year improvement in sales volume for the full year.

展望未來，基於上述原因，我們預期短期內全產業對石墨電極的需求仍將疲軟，大部分地區的價格壓力仍將持續。作為回應，我們仍然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。我們預計 2024 年第二季的銷售量將與第一季的銷售量大致一致。此外，我們繼續預期全年銷售量將年比小幅改善。

Let me now turn it over to Catherine to cover the rest of our financial details.

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. For the first quarter of 2024, we had a net loss of $31 million or $0.12 per share. Adjusted EBITDA was essentially breakeven in the first quarter compared to adjusted EBITDA of $15 million in the first quarter of 2023. The decline reflected lower weighted average pricing and the continued shift in the mix of our business toward non-LTA volume. These factors were, however, partially offset by year-over-year reduction in cash costs on a per metric ton basis, as well as with the benefit of higher sales volume.

謝謝你，傑里米，早安。2024 年第一季度，我們的淨虧損為 3,100 萬美元，即每股虧損 0.12 美元。與 2023 年第一季調整後 EBITDA 1,500 萬美元相比，第一季調整後 EBITDA 基本達到損益兩平。這一下降反映了加權平均定價的下降以及我們的業務組合持續轉向非長期協議數量。然而，這些因素被每噸現金成本同比下降以及銷量增加的好處部分抵消。

As Jeremy previously provided color on most of these drivers, let me expand on the topic of costs. As shown in the reconciliation provided in our earnings call materials posted on our website, our first-quarter 2024 cash COGS per metric ton declined 18% on a year-over-year basis. On a sequential basis, it declined 16% from the fourth quarter of 2023. Contributing to the sequential decline was a $5 million benefit, or approximately $200 per metric ton, reflecting the portion of the lower cost to market inventory write-down recorded in the fourth quarter of 2023, which is now related to the inventory sold in the first quarter of this year.

由於 Jeremy 之前對大多數驅動程式提供了詳細說明，因此讓我詳細討論成本主題。正如我們網站上發布的財報電話會議資料中提供的調節表所示，我們 2024 年第一季每噸現金 COGS 年比下降 18%。環比來看，較 2023 年第四季下降 16%。造成環比下降的是 500 萬美元的收益，即每噸約 200 美元，反映了 2023 年第四季度記錄的較低市場成本庫存減記的部分，該部分目前與第一季度銷售的庫存相關。季度。

Beyond this, the majority of the sequential cost improvement reflected two key drivers. Let me provide some color on each one. First, as we mentioned in our fourth-quarter call, we are addressing all elements of our cost structure. Our efforts related to variable costs are yielding benefits this quarter. Specifically, our technical team continues to work on engineering cost out of our manufacturing processes without compromising quality or performance. Additionally, we are aggressively working with our existing supplier base and qualifying new suppliers as we enhance our procurement practices related to certain key input costs. We’re pleased to see these benefits beginning to flow through our variable costs.

除此之外，大部分連續成本改善反映了兩個關鍵驅動因素。讓我為每一個提供一些顏色。首先，正如我們在第四季度電話會議中提到的，我們正在解決成本結構的所有要素。我們在變動成本方面的努力在本季取得了成效。具體來說，我們的技術團隊在不影響品質或效能的情況下，持續致力於降低製造流程中的工程成本。此外，我們正在積極與現有供應商基礎合作，並在加強與某些關鍵投入成本相關的採購實踐的同時，對新供應商進行資格審查。我們很高興看到這些效益開始透過我們的變動成本體現。

Second, we had a quarter-over-quarter reduction in the level of fixed costs being recognized on an accelerated basis due to low production levels. As a reminder, these are costs recognized in the current period that would have been inventoried if we were operating at normal production levels.

其次，由於生產水準較低，我們加速確認固定成本水準季減。提醒一下，這些是當期確認的成本，如果我們以正常生產水準運營，這些成本將被列入庫存。

In the first quarter, as utilization rates at both our graphite electrode and Seadrift facilities increased sequentially, we recognized approximately $6 million of such costs compared to approximately $10 million in the fourth quarter of 2023. Then while not materially benefiting the first-quarter cash cost performance, our initiatives to reduce fixed costs are on track to generate cost savings as we proceed through the year. Reflecting the progress we are making on our cost structure as it relates to the full year, we now anticipate a mid-teen percentage point decline in our cash COGS per metric ton for 2024 compared to the full-year cash COGS per metric ton for 2023. This compares to our original guidance provided on the fourth quarter call of a year-over-year low-teen percentage point decline.

第一季度，隨著石墨電極和 Seadrift 設施的利用率連續增加，我們確認了約 600 萬美元的此類成本，而 2023 年第四季度約為 1000 萬美元。然後，雖然沒有為第一季的現金成本績效帶來實質好處，但我們降低固定成本的措施有望在全年實現成本節約。反映我們在與全年相關的成本結構方面取得的進展，我們現在預計 2024 年每公噸現金 COGS 與 2023 年全年每公噸現金 COGS 相比將下降 15 個百分點左右。相較之下，我們在第四季電話會議中提供的原始指導意見顯示，年減幅度較低。

Turning now to cash flow. For the first quarter of 2024, cash from operating activities was essentially breakeven as the net loss was offset by, among other factors, a further reduction in working capital, most notably inventory. Reflecting our first-quarter capital expenditures, adjusted cash flow was negative $11 million. We continue to anticipate our full-year 2024 capital expenditures will be in the range of $35 million to $40 million.

現在轉向現金流。2024 年第一季度，經營活動產生的現金基本上達到損益平衡，淨虧損被營運資本（尤其是庫存）進一步減少等因素所抵銷。反映我們第一季資本支出的調整後現金流為負 1,100 萬美元。我們繼續預期 2024 年全年資本支出將在 3,500 萬美元至 4,000 萬美元之間。

Now, moving to the next slide. We ended the first quarter with a liquidity position of $275 million, consisting of $165 million of cash and $110 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 know that we have no debt maturities until the end of 2028.

現在，轉到下一張投影片。截至第一季末，我們的流動性部位為 2.75 億美元，其中包括 1.65 億美元現金和循環信貸額度下的 1.1 億美元。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，我們知道到 2028 年底我們沒有債務到期。

Let me turn the call back over to Tim for some final comments on our outlook.

讓我把電話轉回給提姆，請他對我們的前景做一些最後的評論。

Thanks, Catherine. Let me reiterate my earlier comment that there are many reasons for optimism about the long-term prospects for our company. As we look to the near term, we recognize that a significant amount of global economic uncertainty remains as an overhead on steel demand and, therefore, graphite electrode demand. While it's prudent to remain cautious on near-term industry trends, we can't lose sight of the fact that all cyclical downturns eventually come to an end.

謝謝，凱瑟琳。讓我重申我先前的評論，即有很多理由對我們公司的長期前景感到樂觀。展望近期，我們認識到全球經濟的大量不確定性仍然對鋼鐵需求以及石墨電極需求造成影響。雖然對近期行業趨勢保持謹慎是謹慎的做法，但我們不能忽視這樣一個事實：所有周期性衰退最終都會結束。

Earlier this month, the World Steel Association published their updated short-term forecast on global steel demand. The forecast calls for low- to mid-single-digit percentage increases in steel demand in both 2024 and 2025 for nearly all of our key regions, including the EU, the US, and Middle East. As I mentioned earlier, we are well-positioned to benefit as the global steel market recovers. We believe we provide a compelling value proposition to our customers, and we can compete on more than just price.

本月早些時候，世界鋼鐵協會發布了最新的全球鋼鐵需求短期預測。預測預計 2024 年和 2025 年幾乎所有關鍵地區（包括歐盟、美國和中東）的鋼鐵需求將出現低至中個位數百分比成長。正如我之前提到的，隨著全球鋼鐵市場的復甦，我們已經做好了受益的準備。我們相信，我們為客戶提供了令人信服的價值主張，而且我們的競爭不僅僅是價格。

Our value proposition includes 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, best-in-class customer technical services and solutions, and a focus on continually expanding our commercial and product offerings.

我們的價值主張包括策略定位的製造足跡，提供營運靈活性並涵蓋主要煉鋼地區。作為唯一一家大規模垂直整合到石油針狀焦中的大型石墨電極生產商，提供一流的客戶技術服務和解決方案，並專注於不斷擴大我們的商業和產品供應。

Longer term, as I noted earlier, decarbonization efforts are driving a transition in steel with electric arc furnaces continuing to increase share of total steel production. The 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 will translate to global graphite electrode demand outside of China growing at a 3% to 4% CAGR over the next five years.

從長遠來看，正如我之前指出的，脫碳工作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。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，我們估計這將轉化為中國以外的全球石墨電極需求在未來五年內以3% 至4 % 的複合年增長率成長。

As the strategic actions we are taking to reduce costs have been designed to preserve our ability to capitalize on long-term industry tailwinds, we view GrafTech as being well-positioned to benefit from this trend. Further, anticipated demand growth for petroleum needle coke, the key raw material we use to produce graphite electrodes, will also present a tailwind for our business given our substantial vertical integration. To expand on this point, needle coke demand is expected to accelerate driven by its use to produce synthetic graphite for the anode portion of lithium-ion batteries using the electric vehicle market. Growing demand for needle coke should result in elevated needle coke pricing. And given the high historical correlation between petroleum needle coke pricing and graphite electrode pricing, this trend should translate to higher market pricing for electrodes.

由於我們採取的降低成本的策略行動旨在保持我們利用長期行業順風車的能力，因此我們認為 GrafTech 處於有利地位，可以從這一趨勢中受益。此外，鑑於我們大量的垂直整合，石油針狀焦（我們用於生產石墨電極的關鍵原料）的預期需求成長也將為我們的業務帶來推動力。為了擴大這一點，針狀焦的需求預計將加速成長，因為針狀焦用於生產電動車市場鋰離子電池陽極部分的合成石墨。針狀焦需求的成長將導致針狀焦價格上漲。鑑於石油針狀焦定價與石墨電極定價之間的高度歷史相關性，這一趨勢應會轉化為電極更高的市場定價。

Additionally, we continue to see potential long-term value creation opportunities by directly participating in the development of Western supply chain for the EV battery market. With our needle coke and graphitization capabilities, we possess key assets, resources, and know-how that uniquely position GrafTech to participate in this industry. We remain excited about the development of the supply chain and our associated prospects.

此外，我們繼續看到透過直接參與西方電動車電池市場供應鏈的發展潛在的長期價值創造機會。憑藉我們的針狀焦和石墨化能力，我們擁有關鍵資產、資源和專業知識，使 GrafTech 在參與該行業方面處於獨特地位。我們對供應鏈的發展和相關前景仍然感到興奮。

In closing, we’re working through the challenges we face but have many reasons for optimism as we look ahead. We continue to believe GrafTech will successfully manage through the near-term challenges and remain an industry-leading supplier of mission-critical products to the EAF industry. Longer term, we possess a distinct set of assets, capabilities, and competitive advantages to capitalize on growth opportunities.

最後，我們正在努力應對所面臨的挑戰，但展望未來，我們有許多理由保持樂觀。我們仍然相信 GrafTech 將成功應對近期挑戰，並繼續成為電弧爐行業關鍵任務產品的行業領先供應商。從長遠來看，我們擁有一套獨特的資產、能力和競爭優勢來利用成長機會。

As we think about the company's key stakeholders, we’re instilling a renewed focus on a customer-first mantra, as meeting the needs of our customers must be central to everything we do. At the same time, we must ensure the safety and professional growth of our more than 1,200 employees, our most valuable asset. We must act responsible as stewards in our local communities, protecting our environment and investing in community programs. If we do right by our customers, our employees, and the communities in which we operate, we are confident we can deliver long-term value for our shareholders.

當我們考慮公司的主要利害關係人時，我們正在重新關注客戶至上的口號，因為滿足客戶的需求必須成為我們所做一切的核心。同時，我們必須確保 1,200 多名員工的安全和專業成長，這是我們最寶貴的資產。我們必須充當當地社區的管家，保護我們的環境並投資社區計畫。如果我們正確對待我們的客戶、員工和我們經營所在的社區，我們就有信心為股東創造長期價值。

This concludes our prepared remarks. We'll now open up the call for questions.

我們準備好的演講到此結束。我們現在開始提問。

(Operator instructions) Curt Woodworth, UBS.

（操作員說明）Curt Woodworth，UBS。

I was wondering if you could help us understand maybe some of the relative profitability differences between what you see in your EU operations relative the facility in Mexico? I mean, our understanding is that pricing is significantly below North America and Europe. And can you comment on if there is any discussion around potentially taking more permanent capacity actions in Europe to accelerate fixed cost reduction and potentially baseload other facilities?

我想知道您是否可以幫助我們了解您在歐盟業務中看到的相對於墨西哥設施之間的一些相對盈利能力差異？我的意思是，我們的理解是定價遠低於北美和歐洲。您能否評論一下是否有任何討論可能在歐洲採取更持久的產能行動，以加速固定成本削減並可能對其他設施進行基本負荷？

And then just with respect to pricing in Europe and incremental competition from China, has there been any further capacity rationalization you've seen in Europe? And have there been any discussions on potential more trade actions or things that Europe could do to try to safeguard the profitability of local suppliers in Europe?

那麼，就歐洲的定價和來自中國的競爭加劇而言，您在歐洲是否看到了進一步的產能合理化？是否就潛在的更多貿易行動或歐洲可以採取哪些措施來保護歐洲當地供應商的獲利能力進行過討論？

Thanks, Curt. Appreciate that question. And if I miss a piece of it, please let me know because there was a lot there. I think first and foremost, let's start with kind of the EU and the current state of the market there. As Jeremy noted, the EU remain stagnant from an overall steel demand. I think we're down probably 15% from the high back in 2021. And while there's some anticipated demand growth here this year and into 2025, based on the latest world steel projections, it's still a relatively muted environment and that obviously has an impact on pricing and electrode demand as well.

謝謝，柯特。感謝這個問題。如果我錯過了其中的一部分，請告訴我，因為那裡有很多東西。我認為首先也是最重要的，讓我們從歐盟的情況以及那裡的市場現狀開始。正如傑里米指出的那樣，歐盟的整體鋼鐵需求仍然停滯不前。我認為我們可能比 2021 年的高點下降了 15%。儘管根據最新的世界鋼鐵預測，今年和 2025 年的需求預計將出現一些增長，但環境仍然相對平靜，這顯然也會對定價和電極需求產生影響。

In terms of capacity in Europe right now, I'm not going to speak to anything that anybody else is doing. Back in Q1, we took the steps that we felt were the right steps to align our production capacity to how we see demand evolving over the short term, midterm, and longer term, and we'll continue to rationalize our production accordingly.

就目前歐洲的能力而言，我不會談論其他人正在做的任何事情。早在第一季度，我們就採取了我們認為正確的措施，使我們的生產能力與我們對短期、中期和長期需求變化的看法保持一致，我們將繼續相應地合理化我們的生產。

Back in fourth-quarter conference call, we talked about the actions in St. Marys in particular, but then, as it relates to the EU, we will be taking normalized summer outages in Europe, again, to match our production with the demand forecast.

回到第四季度的電話會議，我們特別討論了聖瑪麗斯的行動，但由於這與歐盟有關，我們將再次在歐洲進行正常化的夏季停電，以使我們的生產與需求預測相匹配。

As we think about our overall production network, we think about it globally, right? We don't necessarily say the EU versus Monterey or vice versa. So right now, certainly, there are markets that are more challenged in other markets from a pricing perspective, but we'll continue to remain focused on what we can control, which is the efforts on the cost front as well as operating our plants as efficiently as we can in the interim, and then pricing down the road will take care of itself.

當我們思考我們的整體生產網絡時，我們會在全球範圍內思考，對吧？我們不一定說歐盟與蒙特雷，反之亦然。因此，目前，當然，從定價角度來看，其他市場中的某些市場面臨更大的挑戰，但我們將繼續專注於我們可以控制的事情，即成本方面的努力以及運營我們的工廠在此期間，我們會盡力提高效率，之後的定價就會水到渠成。

Okay. And then as a follow-up, just on the cost guidance. for down mid-teens, it would seem to imply that you'd be roughly where you are this quarter. And I know in 1Q, you also had a roughly $10 million benefit from by-product credit. Can you just elaborate on how you see by-products benefits this year?

好的。然後作為後續行動，只是關於成本指導。對於十幾歲左右的人來說，這似乎意味著你將大致處於本季的狀態。我知道在第一季度，您還從副產品信貸中獲得了大約 1000 萬美元的收益。能否詳細說明一下您如何看待今年的副產品？

And then in terms of the arbitration settlement, can you kind of quantify what the benefit to the business would be for that?

然後就仲裁和解而言，您能否量化一下這會為企業帶來什麼好處？

Yeah. So let me start with the cost, and then we'll go to the arbitration. On the cost side, you mentioned the by-product credit. That actually gets backed out of our cash COGS per ton, so roughly $9 million. So that doesn't factor into the cost numbers that we're otherwise putting out as we look.

是的。所以讓我從成本開始，然後我們再去仲裁。在成本方面，您提到了副產品信用。這實際上是從我們每噸的現金銷貨成本中扣除的，大約是 900 萬美元。因此，這並沒有考慮到我們所公佈的成本數字。

So Catherine, anything you want to add on the cost side?

凱瑟琳，您在成本方面還有什麼要補充的嗎？

Yeah. So just as I indicated, we do expect now our estimates, say, that we will have a cost decrease in the mid-teen percentage point versus last year. And essentially, this is due in part to our overachievement on cost in the first quarter. And I talked to that overachievement in my prepared remarks.

是的。正如我所指出的，我們現在確實預計我們的成本將比去年下降百分之十左右。從本質上講，這在一定程度上是由於我們第一季的成本超額完成。我在準備好的演講中談到了這項超額成就。

We also continue to expect the benefit of the initiatives to rationalize our fixed cost structure as we indicated in our February earnings call, and so we expect that our costs would show the impact of the decline in fixed cost. We talked about the $15 million annualized benefit to our fixed cost, which fully implemented -- will be fully implemented by the end of the second quarter. And then with the modest year-over-year improvement that we expect in our sales and production volume in 2024 that will also benefit our cash COGS per metric ton. So this was to add a bit of color on the mid-teen percentage point decline expected on cash COGS for the full year as compared to last year.

正如我們在 2 月的財報電話會議中所指出的那樣，我們也繼續預期這些舉措將有助於合理化我們的固定成本結構，因此我們預計我們的成本將顯示出固定成本下降的影響。我們談到了我們固定成本的 1500 萬美元年化收益，該收益已完全實施 - 將在第二季末完全實施。我們預計 2024 年的銷售量和產量將比去年同期略有改善，這也將有利於我們每噸的現金銷售成本。因此，與去年相比，全年現金銷售成本預計將下降 10%左右，這為這一數字增添了色彩。

And then with respect to the arbitration, as I noted in my prepared remarks, the final award was issued. All of the claims against GrafTech were dismissed, and we were awarded reimbursement of legal fees and expenses. We expect that to be about $9 million once that gets settled. But, I mean, I think the important thing is in arbitration is really a means of resolving a contractual dispute, and we've maintained commercial relationships through this process. And really, I think we are happy to have this behind us so that we can focus all of our efforts on the commercial relationship going forward.

然後關於仲裁，正如我在準備好的發言中指出的，最終裁決已經發布。所有針對 GrafTech 的索賠均被駁回，我們獲得了法律費用和開支的賠償。一旦解決，我們預計該金額約為 900 萬美元。但是，我的意思是，我認為重要的是仲裁實際上是解決合約糾紛的一種手段，而我們透過這個過程維持了商業關係。事實上，我認為我們很高興能把這件事拋在腦後，這樣我們就可以將所有的努力集中在未來的商業關係上。

Great. Thank you very much.

偉大的。非常感謝。

Thanks.

謝謝。

Bill Peterson, JPMorgan.

比爾彼得森，摩根大通。

Yeah, hi. Thanks for taking the questions. Maybe piggybacking on the cost improvements. If we were just even, I guess, flat line the cost improvements in the first quarter, it would seem to kind of indicate a high-teens, maybe closer to 17% year-on-year cost decline. So I'm trying to understand, is that right? And I guess, are there -- is this mid-teens? Is that kind of the way you think about it, or is there further upside there? Just trying to get a better sense of how to think about the cost down from here as we look ahead.

是的，嗨。感謝您提出問題。也許會利用成本的改善。我猜想，如果第一季的成本改善持平，這似乎表明成本年減幅度可能接近 17%。所以我試著去理解，是這樣嗎？我想，這是──這是十幾歲的孩子嗎？您是這樣想的嗎？只是想更了解如何在展望未來時考慮從現在開始降低成本。

Yeah, Bill. Thanks for the question. Certainly, we feel confident in the mid-teen number that we're putting out there. There is some variability of our cost structure as we move through the year as we think about the summer outages that I referenced earlier that will take in Europe. Some of the pricing dynamics with our power contracts, they're not flat over the course of the year. So that's why I would say that the mid-teens is a good number given those considerations.

是的，比爾。謝謝你的提問。當然，我們對我們發布的中位數數字充滿信心。當我們考慮到我之前提到的歐洲將發生的夏季停電時，我們的成本結構在一年中會發生一些變化。我們的電力合約的一些定價動態在一年中並不穩定。因此，考慮到這些因素，我會說十幾歲的孩子是一個不錯的數字。

Yeah. I will add to that, that the recognition of the lower cost of market write-down in the fourth quarter of 2023, as you heard earlier, benefited the first quarter cost of sales by about $5 million or $200 per metric ton. So we see a higher impact of that write-down in the first half of the year than in the second half of the year.

是的。我還要補充一點，正如您之前所聽到的，對 2023 年第四季市場減記成本較低的認識使第一季的銷售成本受益約 500 萬美元或每噸 200 美元。因此，我們認為上半年減記的影響力高於下半年。

Okay, thanks for that color. Maybe, kind of turning into the US, not asking for pricing per se, but I think you mentioned that the market spend, you're seeing weakness there, too. But if we think about the US market, the utilization trends have been relatively better, maybe stable, maybe even upper bias, depending on how you look at it over the last few months. With some new capacity coming online, too, that should help as well. But trying to understand how you -- to reconcile the weaker price environment, again, given the utilization trends are, have been relatively steady year with some add a benefit of capacity coming online?

好的，謝謝你的顏色。也許，有點轉向美國，而不是詢問定價本身，但我認為你提到了市場支出，你也看到了那裡的疲軟。但如果我們考慮美國市場，利用率趨勢相對較好，也許穩定，甚至可能偏上，這取決於你如何看待過去幾個月的情況。隨著一些新產能的上線，這也會有所幫助。但是，考慮到利用率趨勢，試圖了解您如何協調較弱的價格環境，今年相對穩定，並且增加了產能上線的好處？

Yeah. I would describe the US market from a demand perspective is stable, right? You see it in the statistics, both in terms of production and utilization rate. But the fact is, is when you've got weakness in the other markets around the world, everybody pushes towards the strongest market, which has historically been the US, and we are seeing increased competition in the US now that maybe people had outlets in other parts of the world differently. So it is not certainly a weak demand environment by any means, but we’re seeing more competition in the US than what we've historically seen.

是的。我從需求角度形容美國市場是穩定的吧？你可以從產量和利用率的統計數據中看到這一點。但事實是，當世界其他市場疲軟時，每個人都會向最強大的市場推進，這在歷史上一直是美國，我們看到美國的競爭加劇，因為也許人們在世界其他地區的情況有所不同。因此，無論如何，這肯定不是一個疲軟的需求環境，但我們看到美國的競爭比我們歷史上看到的更激烈。

Okay, thanks. I'll pass and re-queue.

好的謝謝。我會過去並重新排隊。

Arun Viswanathan, RBC.

阿倫·維斯瓦納坦，加拿大皇家銀行。

Great. Thanks for taking my questions. Good morning. Okay, well, so yeah, I guess first off, just carrying a further on that last question. I guess there is a heightened level of competitive activity in US electrode markets, and you alluded to maybe some of the weaker regions domestically exporting some of those volumes maybe out of China and India. So I guess implicit in that comment also is an acknowledgment that those Chinese electrodes are now at equal competitive levels. Maybe, could you just comment on maybe the quality of the product that's coming out of China to your knowledge? I mean, in the past, we had always kind of assumed that those electrodes were smaller in diameter and they would break, and there was a maybe a little bit of an inherent [shield] there, but it sounds like now that customers are okay using those electrodes and so that would kind of imply that some of this share has been structurally displaced. Is that is that a fair characterization? Or how do you expect to see a decline in this competitive activity or at least win back that share?

偉大的。感謝您回答我的問題。早安.好吧，是的，我想首先，對最後一個問題進行進一步的討論。我猜想美國電極市場的競爭活動水平很高，您提到國內一些較弱的地區可能會從中國和印度出口其中一些量。因此，我想該評論中也隱含著一種承認，即這些中國電極現在處於同等的競爭水平。也許，您能評論一下據您所知來自中國的產品品質嗎？我的意思是，在過去，我們總是假設這些電極的直徑較小，它們會破裂，並且那裡可能有一點固有的[屏蔽]，但聽起來現在客戶沒問題使用這些電極，這意味著其中一些份額在結構上已被取代。這是一個公平的描述嗎？或者您預計如何看到這種競爭活動的下降或至少贏回該份額？

Yeah. So I don't think that's a fair characterization because I don't think we are implying that the Chinese are the driver of the increased competition, right? I would still suggest and I still think we strongly believe that there is a marks differentiation in terms of what we provide, not only in the quality of the electrodes that we produce, but also the other elements of our value proposition versus the Chinese competitors and think that longer term that we compete on more than just price with the Chinese.

是的。所以我認為這是一個不公平的描述，因為我認為我們並不是暗示中國人是競爭加劇的推動者，對嗎？我仍然建議並且我仍然認為我們堅信我們提供的產品存在明顯差異，不僅在我們生產的電極的質量方面，而且在我們價值主張的其他要素方面與中國競爭對手和認為從長遠來看，我們與中國人的競爭不只是價格。

Right now, if you look across the globe, it's a challenging market just about everywhere where competition is pretty fierce. But we'll continue to focus on those things that we can control and, again, operating our plants as efficiently as possible, continuing to improve our overall cost position and move from there. But, again, longer term and our views around quality and where demand goes haven't changed, and we think that the market will recover.

現在，如果你放眼全球，你會發現幾乎所有地方都是一個充滿挑戰的市場，競爭相當激烈。但我們將繼續關注那些我們可以控制的事情，並再次盡可能有效地運作我們的工廠，繼續改善我們的整體成本狀況並以此為基礎。但是，從長遠來看，我們對品質和需求走向的看法沒有改變，我們認為市場將會復甦。

Great, thanks. And then another question along those lines. Just given your utilization rates, where would you, I guess, you see those kind of trending over the next several quarters? Do you see -- because I think some of your competitors, some of the Indian competitors are operating in the 80% rate or above? And I know that, that could be, some of those volumes could be exported and not necessarily reflective of actual demand levels, but do you see a path for your own utilization rates to get back to 80% or so, and, obviously, functioning in closure of St. Marys? How do you see those evolving? The reason I'm asking is because to me, it seems like that's probably the most important lever to getting your cost per ton down and your profitability back up would be higher utilization. So maybe you can just comment on that. Thanks.

萬分感謝。然後是另一個類似的問題。考慮到您的利用率，我想您會在接下來的幾個季度中看到這種趨勢嗎？你看到了嗎——因為我認為你的一些競爭對手，一些印度競爭對手的營運率是 80% 或以上？我知道，其中一些數量可能會被出口，並不一定反映實際需求水平，但您是否看到了使自己的利用率恢復到 80% 左右的路徑，並且顯然可以發揮作用聖瑪麗學校關閉？您如何看待這些發展？我之所以問這個問題，是因為對我來說，提高利用率似乎可能是降低每噸成本和恢復獲利能力的最重要槓桿。所以也許你可以對此發表評論。謝謝。

Yeah, sure. And certainly, fixed cost leverage will help improve our cost structures. And we've commented on this before as we look into the future and we return to what we would consider a normal operating rate in kind of mid-cycle sort of conditions. You know, there is a benefit from that, but there still are benefits that will drive out of our cost structure via the variable cost side and actually taking costs out of the system, not just getting better absorption of our fixed costs.

好，當然。當然，固定成本槓桿將有助於改善我們的成本結構。我們之前在展望未來時對此進行了評論，並且我們回到了我們所認為的在周期中期條件下的正常開工率。你知道，這樣做是有好處的，但仍然有一些好處可以透過可變成本方面推動我們的成本結構，並實際上將成本從系統中剔除，而不僅僅是更好地吸收我們的固定成本。

With respect to utilization, we were at 58% in the first quarter. I would expect just given our overall view on the commercial side for the year where we're guiding to a modest increase over last year and the fact that we've more rightsized our inventory that we will continue to see a small uptick in our utilization rates. But until we start getting back into more mid-cycle like demand conditions, we're going -- we're not going to be operating at an 80% level. But we definitely think there's a path as we look out into the future kind of given all of the midterm and long-term trends we've talked about.

就利用率而言，第一季我們的利用率為 58%。我預計，鑑於我們對今年商業方面的總體看法，我們預計比去年略有增長，並且我們對庫存進行了更多調整，因此我們的利用率將繼續小幅上升費率。但在我們開始回到類似需求狀況的中期週期之前，我們不會以 80% 的水平運作。但考慮到我們討論過的所有中期和長期趨勢，我們肯定認為在展望未來時有一條道路。

Great, thanks. And then one more just on your overall liquidity and financial position. So we've gotten some questions around liquidity levels and your comfort there. So could you just maybe kind of walk us through how you see kind of cash burn over the next couple of quarters and your liquidity needs and if you need any -- the need to raise capital at all? Thanks.

萬分感謝。然後再談您的整體流動性和財務狀況。我們收到了一些有關流動性水平和您的舒適度的問題。那麼，您能否向我們介紹一下您對未來幾季的現金消耗情況以及您的流動性需求以及是否需要籌集資金的需求？謝謝。

Yeah. So in terms of liquidity, we ended the first quarter with $275 million of total liquidity, $165 million of that is cash and $110 million of that is availability under our revolver. And again, given the structure our revolver that remains available to us kind of in any period or cycle. We've noted and we'll say again that we don't anticipate borrowing against the revolver in the current year. So we feel comfortable about the liquidity position and where we sit today in. We'll go from there as the market moves forward.

是的。因此，就流動性而言，第一季結束時，我們的流動性總額為 2.75 億美元，其中 1.65 億美元是現金，其中 1.1 億美元是我們的左輪手槍可用的。再說一次，考慮到我們的左輪手槍的結構，我們在任何時期或週期都可以使用。我們已經注意到並將再次重申，我們預計今年不會以左輪手槍為抵押進行借款。因此，我們對流動性狀況以及我們今天所處的位置感到滿意。隨著市場的發展，我們將從那裡開始。

Great. And then if I could, just one last one is, would you consider further portfolio moves? I know that some of these assets do have significant value that's potentially not reflected in your market value right now. So what is the path forward to as you evaluate the portfolio, do you feel comfortable where you are? And maybe you can just comment that in the frame of your further investments into the anode side of the EV battery, would you need all of these assets to kind of make those investments as well or maybe some of the graft utilization could be disposed or at least monetize to accelerate that process? Thanks.

偉大的。如果可以的話，最後一個問題是，您會考慮進一步調整投資組合嗎？我知道其中一些資產確實具有巨大的價值，但目前可能無法反映在您的市場價值中。那麼，當您評估投資組合時，前進的道路是什麼？也許您可以評論說，在對電動車電池陽極側進行進一步投資的框架中，您是否也需要所有這些資產來進行這些投資，或者可能可以處置或處置部分移植利用最少貨幣化來加速這一過程？謝謝。

Yeah. Arun, I think it is a good kind of line of discussion. We look at our business right now as an electrode business. As we look out into the future, this will be an electrode business and a battery anode business because there's a great parallel between our capabilities from the production of needle coke, as well as the ability to grafitize those materials, which are two of the major steps in producing synthetic graphite for anodes. So we think that the combination of assets we have on the ground position us to be a significant player in both the electrode business going forward, our core business, as well as in the development of the Western supply chain for electric vehicles and the related battery materials. So disposing of additional assets, monetizing for short-term benefit with the detriment of longer-term shareholder value creation certainly isn't the way we're looking at it. We think that we can capitalize on the assets we have and really strengthen our business as we look forward.

是的。阿倫，我認為這是一個很好的討論想法。我們現在將我們的業務視為電極業務。展望未來，這將是一個電極業務和一個電池陽極業務，因為我們生產針狀焦的能力以及對這些材料進行石墨化的能力之間有很大的相似之處，這是我們的兩個主要業務。因此，我們認為，我們現有的資產組合使我們能夠成為未來電極業務（我們的核心業務）以及西方電動車和相關電池供應鏈發展的重要參與者。因此，處置額外資產，透過損害長期股東價值創造來換取短期利益，這當然不是我們看待問題的方式。我們認為，我們可以利用我們擁有的資產，真正加強我們的業務。

Thanks.

謝謝。

Alex Hacking, Citi.

亞歷克斯哈金，花旗銀行。

Hi. Yes, thanks. Just a follow-up on your last point there. Any update or thoughts around the timing of when you might do something on the EV side? Thank you.

你好。對了謝謝。只是對你最後一點的跟進。關於您何時可能在電動車方面做一些事情的時間有什麼更新或想法嗎？謝謝。

Yeah. So no real update. We continue to progress on the permitting process at Seadrift. We just went through the public comment period and that continues to move forward. Again, this all really depends on the development of the market how quickly the OEMs, the battery makers, and everybody kind of aligned. I would say that we've gone from a very fevered pitched mark a year or so or 18 months ago to a very hot market or still really compelling market, but everybody is just now kind of aligning their supply chains ultimately looking forward to kind of production and scale starting in 2026. So no updates beyond that from a timing perspective.

是的。所以沒有真正的更新。我們繼續在 Seadrift 的許可程序上取得進展。我們剛剛度過了公眾意見徵詢期，並將繼續向前推進。同樣，這一切實際上都取決於市場的發展，原始設備製造商、電池製造商和每個人的協調速度有多快。我想說的是，我們已經從一年左右或18 個月前的一個非常狂熱的市場轉變為一個非常熱門的市場或仍然非常引人注目的市場，但每個人現在都在調整他們的供應鏈，最終期待著某種程度的改善。因此，從時間角度來看，沒有任何更新。

Thank you. And then I just want to check my maths on the LTA pricing. I think it was $8,700 in the quarter. If I look at the full-year numbers, it seems like the price should be closer to $8,100. I don't know if my maths there is correct, and is there a reason why the first-quarter LTA price looks so relatively strong? Thank you.

謝謝。然後我只想檢查一下我對 LTA 定價的數學計算。我認為該季度的價格為 8,700 美元。如果我看一下全年數據，價格似乎應該接近 8,100 美元。我不知道我的數學是否正確，第一季 LTA 價格看起來如此相對強勁是否有原因？謝謝。

Yeah, Alex, your math is spot on. We guide you to the $8,100 for the full year. There's a mix issue, right? Not all the LTA contracts are priced the same. If you remember, given the fact that these are now winding down and coming to end of life. There are certain contracts that are still under their original terms or other contracts that have been blended and extended. So you've got a little bit of a variety of pricing constructs that are in the tail end of these contracts. So the $8,700 was the number for Q1, and $8,100 is still a good data point based on the math that we provided for the full year.

是的，亞歷克斯，你的數學很正確。我們指導您全年收入為 8,100 美元。有混合問題，對嗎？並非所有長期協議合約的定價都相同。如果你還記得的話，考慮到這些現在正在逐漸消失並即將結束。有些合約仍保留其原始條款，或其他合約已混合和延期。因此，這些合約的末尾有一些不同的定價結構。因此，8,700 美元是第一季的數字，根據我們提供的全年數學計算，8,100 美元仍然是一個很好的數據點。

Okay, thanks. And then just one final one. Would you characterize the steel industry as destocking electrodes at the moment or inventory levels there fairly stable? And I guess what I'm getting at is this current electrode demand reflect current steel production or is it lagging? Thank you.

好的謝謝。然後只有最後一件事。您認為目前鋼鐵業正在去庫存電極，還是庫存水準相當穩定？我想我的意思是當前的電極需求反映了當前的鋼鐵產量還是滯後？謝謝。

Yeah. Let me let Jeremy answer that one.

是的。讓我讓傑里米來回答這個問題。

Yeah. So our comments on this are always kind of broad brush, right? But in general, we've said in the past that the steel industry tends to -- it tends to hold about three months' worth of electrode inventory. And really, we're seeing trends similar to what we saw in Q4. In North America, we continue to see steelmakers holding somewhere in the neighborhood of about four months' worth of electrode inventory reflecting their confidence in the ongoing strength of the domestic industry. Whereas in Europe, we are seeing an industry that's not as strong. And as a result, some of our customers are a little bit more hand to mouth, and so, we are seeing them run a lot tighter from an inventory perspective, carrying about two months' worth of inventory. And so not that changed from what we saw in the fourth quarter at the moment.

是的。所以我們對此的評論總是粗略的，對吧？但總的來說，我們過去曾說過，鋼鐵業往往持有大約三個月的電極庫存。事實上，我們看到的趨勢與第四季類似。在北美，我們繼續看到鋼鐵製造商持有約四個月的電極庫存，反映出他們對國內產業持續強勁的信心。而在歐洲，我們看到的產業卻不那麼強大。因此，我們的一些客戶的生存能力更加有限，因此，我們看到他們從庫存角度來看更加緊張，持有大約兩個月的庫存。因此，與我們目前在第四季度看到的情況相比，情況並沒有改變。

Yeah. So we are about two quarters to three quarters now, I think, of similar dynamics, both in Europe and in the US. So I think buying patterns are really reflective of demand at this point in time.

是的。因此，我認為，現在歐洲和美國都出現了類似的動態，大約有四分之二到四分之三。所以我認為購買模式確實反映了此時的需求。

Okay. But there isn't, I guess, there isn't a destock, right? Like different regions have different levels, but those levels --

好的。但我想，並沒有去庫存，對吧？就像不同的地區有不同的級別，但這些級別--

Right. And those levels have stayed relatively constant over the last couple of quarters. Nobody is buying excess, and nobody is selling or destocking, as you said.

正確的。這些水平在過去幾個季度中保持相對穩定。正如你所說，沒有人過量購買，也沒有人出售或去庫存。

Okay. So in order to get better electrode demand, we need better steel production activity?

好的。那麼為了獲得更好的電極需求，我們需要更好的鋼鐵生產活動嗎？

That's right.

這是正確的。

Thank you very much.

非常感謝。

Matt Vittorioso, Jefferies.

馬特·維托里奧索，杰弗里斯。

Yeah, good morning. Thanks for taking my question. I guess just on capacity, you mentioned in your comments that you guys are kind of the only participant that's taken any meaningful action on capacity. I mean, what do you think needs to happen there? Why does nobody else want to curtail capacity to help support the price? I mean, typically, when a commodity goes into the basement here like electrode pricing has, you'll get some kind of supply response that we just haven't seen the cycle at least so far. So any comments on that would be helpful.

是的，早安。感謝您提出我的問題。我想就容量而言，您在評論中提到您是唯一對容量採取任何有意義行動的參與者。我的意思是，你認為那裡需要發生什麼？為什麼沒有人願意削減產能來幫助支撐價格？我的意思是，通常，當商品像電極定價一樣進入地下室時，你會得到某種供應反應，至少到目前為止我們還沒有看到這種週期。因此，對此的任何評論都會有所幫助。

Yeah, Matt. I think it would be unfair of me commenting on what the mindset or what other people are doing or the decisions they are making. We took the actions, we took to not only improve our cost structure, but do what we thought was appropriate, given kind of our outlook on demand here in the short and midterm. Beyond that, I don't think everybody can continue to run at utilization rates in the 50% to 60% range for a long time, but how they respond, I can't speculate.

是的，馬特。我認為我評論其他人的心態或正在做什麼或他們正在做出的決定是不公平的。我們採取的行動不僅是為了改善我們的成本結構，而且考慮到我們對短期和中期的需求前景，我們採取了我們認為適當的行動。除此之外，我不認為每個人都能繼續以 50% 到 60% 的利用率運行很長一段時間，但他們會如何反應，我無法推測。

Well, I guess that's my question, maybe just said another way. Is there some cost advantage that your competitors have that allow them to continue to throw supply into this market? Or is it your expectation that at some point that supply response will come?

好吧，我想這就是我的問題，也許只是用另一種方​​式表達。您的競爭對手是否具有一些成本優勢，使他們能夠繼續向這個市場投入供應？或者您期望在某個時候供應響應會出現？

Yeah. I mean if you look at -- broadly speaking against our Tier 1 competitors, they operate in the same geographic regions that we do and are subject to the same labor and power and supply costs that we would otherwise find ourselves. So in the current environment, I think we are all in a similar cost position. I think as demand picks up in our vertical integration with Seadrift, I think that gives us a little bit of advantage. But I don't think there's a meaningful advantage that they have over us from a cost perspective right now.

是的。我的意思是，如果你看一下——從廣義上講，與我們的一級競爭對手相比，他們在與我們相同的地理區域運營，並且受到與我們相同的勞動力、電力和供應成本的影響。所以在目前的環境下，我認為我們都處於相似的成本地位。我認為隨著我們與 Seadrift 的垂直整合需求的增加，我認為這給了我們一點優勢。但我認為，從成本角度來看，他們目前並沒有比我們有任何有意義的優勢。

Okay. And then maybe just, Tim, if you could just maybe talk a little bit more about -- I think you've probably been out seeing customers quite a bit in your new role and looking to maybe rebuild certain customer relationships, post some of the LTA friction that has occurred. Maybe just talk a little bit about how those conversations are going?

好的。然後，蒂姆，如果你能多談談——我想你在新角色中可能經常會見客戶，並希望重建某些客戶關係，發布一些LTA 摩擦已經發生。也許只是談談這些對話的進展？

And then, also, I think you've mentioned some of the other services that you guys provide or the value add that GrafTech provides away from just a good quality product. Maybe just talk briefly about some of those services that you guys provide monitoring electric arc furnaces and whatnot, just kind of increase the value add that GrafTech offers.

然後，我認為您還提到了您們提供的一些其他服務或 GrafTech 除了優質產品之外還提供的附加價值。也許只是簡單地談談你們提供的一些監控電弧爐的服務等等，只是增加 GrafTech 提供的附加價值。

Yeah. I'll speak to the customer side, and then I'll let Jeremy comment on architect and what we're doing there with our customer technical service team. But, I mean, listen, we're moving away from the LTA world and the structured contracts to a more spot-oriented business. And so I think it's more important than ever that we're engaging with customers on a regular and maybe even more frequent cadence as we go forward.

是的。我將與客戶方交談，然後讓傑里米評論架構師以及我們與客戶技術服務團隊正在做的事情。但是，我的意思是，聽著，我們正在從長期協議世界和結構性合約轉向更以現貨為導向的業務。因此，我認為，在我們前進的過程中，定期甚至更頻繁地與客戶接觸比以往任何時候都更重要。

And like any business, all relationships are not equal, but it's important that we are engaging and putting energy to every customer relationship we have. And while not getting into particular customer situations, I think, overall, our conversations have been encouraging, and I think we've really been out there stressing a couple of things. One, we want our customer to understand the value proposition and what we bring to the table. Two, we want to make sure we are meeting their needs from a depth and breadth of product offerings, which includes how we are supporting them via architect and CTS. But I think lastly and probably most importantly is that they understand we are focused on long-term partnerships and remain willing to invest in those partnerships alongside of them.

與任何企業一樣，並非所有關係都是平等的，但重要的是我們要積極參與並為我們擁有的每個客戶關係投入精力。雖然沒有涉及特定的客戶情況，但我認為，總的來說，我們的對話令人鼓舞，而且我認為我們確實強調了一些事情。第一，我們希望顧客了解價值主張以及我們所帶來的成果。第二，我們希望確保從產品的深度和廣度上滿足他們的需求，其中包括我們如何透過架構師和 CTS 來支援他們。但我認為最後也是最重要的是，他們了解我們專注於長期合作關係，並且仍然願意與他們一起投資這些合作關係。

We made some big announcements in the fourth quarter as it related to our footprint, our cost structure, and things that we are doing, and we thought it was important that we had direct face-to-face conversations with our customers about what we are doing, why we're doing it, and how we're positioning ourselves to be long-term suppliers for them. So all in all, I think very positive developments from a customer standpoint.

我們在第四季度發布了一些重大公告，因為這與我們的足跡、成本結構以及我們正在做的事情有關，我們認為與客戶直接面對面對話我們的業務非常重要我們正在做什麼，為什麼這樣做，以及我們如何將自己定位為他們的長期供應商。總而言之，我認為從客戶的角度來看，這是非常正面的發展。

Jeremy, do you want to comment on architect and CTS?

Jeremy，您想對建築師和 CTS 發表評論嗎？

Yeah. I would say that all of this is just part of the long-term investment we've been making month over month, year over year in strengthening our relationships with our customers between the CTS individuals that go on a regular base to be physically present in the steel mills and meet with not just the procurement, but it's really our opportunity to meet with melt shop managers and the people that are actually operating their furnaces. And all of this is part of an effort to help our customers be better at what they do.

是的。我想說，這一切只是我們逐月、年復一年地進行長期投資的一部分，目的是加強我們與客戶之間的關係，這些 CTS 人員經常駐紮在我們的基地。人員，而且這確實是我們與熔煉車間經理和實際操作熔爐的人員會面的機會。這一切都是為了幫助我們的客戶做得更好。

And architect is a tool that we use that not only gives them better visibility into their own operations, but also gives us an opportunity to provide remote support when we can't be there in person. And we continue to work with the customers to understand where else or how else we can deploy a tool like that in order to continue to benefit them and help them continue to get better what they do. So we really appreciate the partnership that we have with those customers. And through the support that we give them, they also help us make our product offering better as well.

架構師是我們使用的工具，不僅可以讓他們更了解自己的營運狀況，還可以讓我們在無法親自到場時提供遠端支援的機會。我們繼續與客戶合作，了解我們還可以在哪裡或如何部署這樣的工具，以便繼續使他們受益並幫助他們繼續做得更好。因此，我們非常感謝與這些客戶的合作關係。透過我們給予他們的支持，他們也幫助我們提供更好的產品。

That's helpful. Maybe just lastly, I know you've commented on liquidity and certainly understand the comments there. I mean, I guess, I would say, with $165 million of cash on hand to say that you won't borrow against the revolver, don't think you need to -- it's comforting, but maybe it doesn't say a whole lot. But there's certainly been financial news sources highlighting that there are groups out there talking about ways that they could maybe offer you additional liquidity. Maybe just comment on your openness and you think it makes sense now to consider such a move just in case the downturn in pricing holds for longer than you expected? I mean, sometimes, it's better to just take the liquidity when it's offered and have it for a rainy day?

這很有幫助。也許最後，我知道您已經對流動性發表了評論，當然也理解那裡的評論。我的意思是，我想，我會說，手頭上有1.65 億美元的現金，你不會以左輪手槍為抵押借錢，我認為你不需要這樣做——這令人欣慰，但也許這並不能說明全部很多。但肯定有財經新聞來源強調，有一些團體正在討論他們可能為您提供額外流動性的方法。也許只是評論一下你的開放性，你認為現在考慮這樣的舉動是有意義的，以防價格低迷持續的時間比你預期的要長？我的意思是，有時候，最好是在提供流動性時就採取流動性以備不時之需？

Yeah, thanks. And again, I'm not going to comment on market speculation or articles quoting unnamed sources. But I think to the latter part of your question, I think even since I joined 2.5 years ago, we've always had a look to our balance sheet, our capital structure, and try to be proactive in terms of refinancing the revolver, refinancing our notes. So we're always having conversations with our advisers, our banks about our capital structure and how to best optimize our positioning. But beyond that, I think we're comfortable with the liquidity position we sit in today, and we'll continue to work on the cost side of our business and focus on those things that we keep control.

是的，謝謝。再說一遍，我不會對市場猜測或引用未透露姓名的消息來源的文章發表評論。但我認為，對於你問題的後半部分，我認為，即使自從我2.5 年前加入以來，我們一直在審視我們的資產負債表、我們的資本結構，並嘗試在左輪手槍再融資、再融資方面積極主動。因此，我們總是與我們的顧問、銀行就我們的資本結構以及如何最好地優化我們的定位進行對話。但除此之外，我認為我們對目前的流動性狀況感到滿意，我們將繼續致力於業務的成本方面，並專注於我們能夠控制的事情。

Got it. Thanks for the time. Appreciate it.

知道了。謝謝你的時間。欣賞它。

Thank you.

謝謝。

Abe Landa, Bank of America.

阿貝·蘭達，美國銀行。

Good morning. Thank you for taking my questions. Maybe the first one, just on -- I know you've historically provided this -- but there were needle coke prices in 1Q, and then where do you see them now and kind of for the rest of the year? I know we see some charts on Bloomberg versus it looks like the Chinese version has kind of declined 10% year to date?

早安.感謝您回答我的問題。也許是第一個，我知道您歷來提供過這個，但是第一季有針狀焦價格，然後您現在在哪裡看到它們以及今年剩餘時間的價格？我知道我們在彭博社上看到了一些圖表，看起來中文版今年迄今已經下降了 10%？

Yeah. So looking at looking at the export statistics, what we would see is that things are pretty much where they were a quarter ago. We would be looking for pricing for super premium needle coke in the range of $1000 to $1,300 for the higher-end or super premium needle cokes that are typically used in our applications.

是的。因此，看看出口統計數據，我們會發現情況幾乎與一個季度前相同。對於我們應用中通常使用的高端或超優質針狀焦，我們希望超優質針狀焦的定價在 1000 至 1,300 美元之間。

With regard to the rest of the year, of course, we don't know right now, as you know, needle coke pricing can be highly volatile, reflecting the market conditions at the time. But currently, we see things at $1,300. But in the recent past, we've seen prices as high as $3,000 in 2022 and as low as $1,000 a year before that, kind of consistent with where we find ourselves currently. So I don't really have a good guidance for you for where I think that's going to go for the balance of the year. Volatility is really kind of key in needle coke space.

當然，關於今年剩餘時間，我們現在還不知道，正如您所知，針狀焦價格可能會大幅波動，反映了當時的市場狀況。但目前，我們認為價格為 1,300 美元。但最近，我們看到 2022 年價格高達 3,000 美元，而在此之前的一年則低至 1,000 美元，這與我們目前的情況有些一致。因此，對於今年剩下的時間我認為會發生什麼，我真的沒有很好的指導。波動性確實是針狀焦領域的關鍵。

Yeah. And the only thing I'd add is, I think we saw a fairly steady quarter-over-quarter decline as we moved throughout 2023. And now we've probably seen a bit of flattening of the pricing here over the last quarter or two, and it's held kind of in this range that Jeremy talked about.

是的。我唯一要補充的是，我認為在 2023 年期間，我們看到了相當穩定的季度環比下降。現在，我們可能已經看到過去一兩個季度的定價有所趨平，並且保持在傑里米談到的這個範圍內。

That's very helpful color. And then if I look at Seadrift, I mean, how does your costs at Seadrift kind of compared to the market pricing today? And maybe, what is Seadrift utilization currently, and kind of how do you expect that to trend as well?

這是非常有用的顏色。然後，如果我看看 Seadrift，我的意思是，與當今的市場定價相比，你們在 Seadrift 的成本如何？也許，Seadrift 目前的使用率是多少？

Yeah. So Seadrift utilization is going to align with our overall kind of utilization rates. We're running Seadrift in line with kind of our internal demand for needle coke for our graphite electrode plants as we go forward. Kind of like our large electrode plants, running them at capacity makes them more cost effective. I'd say, Seadrift is competitive in this market but does not give us the same cost advantage that we normally would benefit from in being vertically integrated as you do when you see needle coke prices kind of more in the mid-cycle type levels or even the high end of the ranges that Jeremy was speaking to earlier.

是的。因此，Seadrift 的利用率將與我們的整體利用率保持一致。隨著我們的發展，我們正在根據石墨電極工廠對針狀焦的內部需求來運行 ​​Seadrift。有點像我們的大型電極工廠，滿載運轉使它們更具成本效益。我想說的是，Seadrift 在這個市場上具有競爭力，但並沒有給我們帶來同樣的成本優勢，而我們通常會從垂直整合中受益，就像當你看到針狀焦價格更多地處於中期類型水平或甚至傑里米之前談到的範圍的高端。

That's very helpful. And then maybe my last question, this is kind of a follow-up question from an earlier one. You kind of mentioned an increased competition with the US. Is that primarily coming from like your traditional Tier 1 Japanese competitors, or is it coming from kind of these other Chinese or Indian? Like I know, one of the Indian competitors just added 20,000 tons of capacity. Just kind of more color on the competition.

這非常有幫助。也許是我的最後一個問題，這是前一個問題的後續問題。您提到與美國的競爭加劇。這主要來自傳統的日本一級競爭對手，還是來自其他中國或印度？據我所知，印度競爭對手之一剛剛增加了 2 萬噸產能。只是為比賽增添了更多色彩。

Yeah. So that 20,000 tons came on at the end of last year. But the competition really is from those Tier 1 competitors, right? I mean, again, the US tends to be the strongest market out there, and you are seeing everybody fight for volumes in that market.

是的。所以去年年底就達到了2萬噸。但競爭確實是來自那些一級競爭對手，對嗎？我的意思是，美國往往是最強大的市場，你會看到每個人都在爭取該市場的銷售量。

Thank you very much for the color. Appreciate it.

非常感謝你的顏色。欣賞它。

Kirk Ludtke, Imperial Capital.

柯克·路特克，帝都。

Hello, Tim, Jeremy, Catherine, Mike. Thanks for the call. Just a couple of follow-ups. This came up earlier. I was curious, could you expand on the pending trade restrictions, anything on the regulatory front that we might want to keep an eye on?

你好，提姆、傑瑞米、凱瑟琳、麥克。感謝您的來電。只是幾個後續行動。這個問題早些時候就出現過。我很好奇，您能否詳細介紹一下懸而未決的貿易限制以及我們可能需要關注的監管方面的任何內容？

Yeah. So just as a recap, right, you've got trade protections right now in the EU against both Indian and Chinese electrodes. You have trade protection in the US against Chinese imports. And then I think all of those cases are pretty stable. I don't think any of them are coming up for renewal or rejudgment here anytime in the near future. I think there was just an announced trade case in Japan against Chinese electrodes, so I think everybody is starting to take note of what the Chinese are doing in the market. Outside of that, I don't think there's anything pending that I can comment on right now.

是的。回顧一下，現在歐盟對印度和中國電極都實施貿易保護。美國對中國進口產品實施貿易保護。然後我認為所有這些情況都相當穩定。我認為在不久的將來，他們中的任何一個都不會在這裡進行更新或重新判斷。我認為日本剛剛宣布了一起針對中國電極的貿易案件，所以我認為每個人都開始注意到中國人在市場上所做的事情。除此之外，我認為目前沒有任何懸而未決的事情可以發表評論。

Okay, I appreciate that. Thank you. With respect to the monetization of the battery opportunity you reiterated, I think, 2026, when would you have to make a decision in terms of your capacity at Seadrift in order to participate on that kind of timeline?

好的，我很欣賞。謝謝。關於您重申的電池機會的貨幣化，我想，到 2026 年，您什麼時候必須就 Seadrift 的產能做出決定，才能按照這樣的時間表參與？

Yeah. Jeremy, do you want to talk to the construction timeline and then we can come back to when we have to start making decisions?

是的。傑里米，你想談談施工時間表，然後我們可以回到何時開始做出決定嗎？

Yeah. So we would expect the permit to come through sometime in the third quarter of this year is kind of our expectation right now on that. And then once we make a decision on an investment, we are probably looking at a timeline of somewhere around 18 months, I would guess, for construction assuming that all the permitting is in place, and we're in good shape.

是的。因此，我們預計許可證將在今年第三季的某個時候獲得，這是我們目前的預期。一旦我們做出投資決定，我猜，我們可能會考慮大約 18 個月的施工時間表，假設所有許可都已到位，並且我們狀況良好。

And in terms of broader strategic timeline and decision-making, it really depends on where we go with the process. Our ability right now, I just commented previously about Seadrift not running at capacity, if we just wanted to sell more needle coke into the market, we could do that and make that decision here today. Obviously, the further you go into the supply chain and the fully developing of an anode plant, that, obviously, will take a longer lead time just given the construction window that Jeremy pointed and also the capital requirements of that. So it really depends on where ultimately we land in terms of our position in the full value chain.

就更廣泛的策略時間表和決策而言，這實際上取決於我們的流程進展。我們現在的能力，我之前剛剛評論過 Seadrift 沒有滿載運行，如果我們只是想向市場銷售更多的針狀焦，我們可以做到這一點，並今天在這裡做出決定。顯然，考慮到傑里米指出的建設窗口及其資本要求，您進入供應鏈和陽極工廠的全面開發越深入，顯然將需要更長的交付時間。因此，這實際上取決於我們最終在整個價值鏈中的地位。

Got it, thank you. And then lastly, have you recovered -- I know market share is a bit of a moving target, but do you feel as though you've recovered the share you lost pursuant to Monterrey?

收到了。最後，你是否已經恢復過來了——我知道市場份額是一個不斷變化的目標，但你是否覺得你已經恢復了根據蒙特雷法案失去的份額？

Yeah. I mean I think we talked a little bit about this at year end, right? We're rolling off an environment where we're highly contracted. Obviously, we had the challenges that were caused by the shutdown of Monterrey. And we are doing all of this during a very challenging demand environment broadly from a market standpoint. So I think we made good progress in the commercial cycle that we concluded in the third and fourth quarter of '23, and we'll continue to work through it, but we're not going to get it all back just in one fell swoop. So we think we're headed in the right direction and making progress. But you don't recover from everything just in one bidding cycle.

是的。我的意思是，我想我們在年底討論過這個問題，對嗎？我們正在擺脫一個高度契約化的環境。顯然，我們面臨著蒙特雷關閉帶來的挑戰。從市場的角度來看，我們是在一個非常具有挑戰性的需求環境中做這一切的。因此，我認為我們在 23 年第三季和第四季結束的商業週期中取得了良好進展，我們將繼續努力解決這個問題，但我們不會一次全部恢復過來。因此，我們認為我們正朝著正確的方向前進並取得進展。但僅在一個競價週期內，您無法從所有事情中恢復過來。

Got it. Would you say that you're tracking on that front, in line with expectations?

知道了。您是否認為您在這方面的追蹤符合預期？

Very much so, yes.

非常如此，是的。

Thank you very much.

非常感謝。

This concludes our question-and-answer session. I will now hand the call back over to Mr. Flanagan for closing comments. Please go ahead.

我們的問答環節到此結束。我現在將把電話轉回弗拉納根先生以徵求結束意見。請繼續。

Thanks, Constantine. With that, I'd like to thank everyone on this call for your interest in GrafTech. And we look forward to speaking to you again next quarter. Have a great day.

謝謝，康斯坦丁。在此，我要感謝本次電話會議中的所有人對 GrafTech 的興趣。我們期待下個季度再次與您交談。祝你有美好的一天。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。