GrafTech International Ltd (EAF) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the GrafTech second quarter 2024 earnings conference call and webcast. (Operator Instructions) This call is being recorded on Friday, July 26, 2024.

早安，女士們、先生們，歡迎參加 GrafTech 2024 年第二季財報電話會議和網路廣播。（操作員說明）此通話錄音時間為 2024 年 7 月 26 日星期五。

And I would like now to turn the conference over to Mike Dillon. Please go ahead.

我現在想把會議交給麥克狄龍。請繼續。

Thank you, Ace. Good morning and welcome to GrafTech International's second quarter 2024 earnings call. And with me today are Tim Flanagan, Chief Executive Officer; Jeremy Halford, Chief Operating Officer; and Catherine Delgado, Interim Chief Financial Officer.

謝謝你，艾斯。早安，歡迎參加 GrafTech International 的 2024 年第二季財報電話會議。今天和我在一起的還有執行長 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)。

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.

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 strategies. These statements are based on current expectations and are subject to risks and uncertainties.

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。

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 the 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.

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，投影片包括相關的非 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。

Thanks, Mike, and good morning and thank you for joining GrafTech's second quarter earnings call. Let me start by saying that we operate in a cyclical industry and we find ourselves in a challenging part of the cycle for our business and more broadly for our industry.

謝謝麥克，早安，感謝您參加 GrafTech 第二季財報電話會議。首先我要說的是，我們在一個週期性行業中運營，我們發現自己正處於週期中對我們的業務和更廣泛的行業來說充滿挑戰的部分。

Graphite electrode demand remains weak, industry-wide capacity utilization rates remain low and consequently, cost per ton are high. At the same time, pricing discipline in the inventory has been somewhat sacrificed to support volume.

石墨電極需求仍疲軟，全產業產能利用率較低，噸成本較高。同時，庫存的定價規則在一定程度上被犧牲了以支持銷售。

Against this backdrop, GrafTech, and we believe most others in our industry are operating their electric business at losses or low margins. We think these dynamics are well understood. We also believe it's well understood that these dynamics are not sustainable.

在此背景下，GrafTech 以及我們行業中的大多數其他公司都在虧損或低利潤地經營其電力業務。我們認為這些動態是很好理解的。我們也相信，眾所周知，這些動態是不可持續的。

We don't control all of these underlying forces, particularly the macro or the actions taken by others. But we do control our response and our actions. We are engaging with our customers with a relentless focus on meeting their needs.

我們無法控制所有這些潛在力量，特別是宏觀因素或其他人採取的行動。但我們確實可以控制我們的反應和行動。我們與客戶互動，不懈地致力於滿足他們的需求。

We are adding to our customer value proposition. We are investing in technical capabilities and offerings. We are aggressively cutting costs without compromising quality, safety or the environment. We are managing our working capital and capital expenditure levels. We've reduced our production capacity. We are proactively managing production to balance supply and demand, and we are actively pursuing opportunities to diversify our business and support long-term growth.

我們正在增加我們的客戶價值主張。我們正在投資技術能力和產品。我們在不影響品質、安全或環境的情況下積極削減成本。我們正在管理我們的營運資本和資本支出水準。我們已經減少了產能。我們積極管理生產以平衡供需，並積極尋求業務多元化和支持長期成長的機會。

At the end of the day, we are focused on controlling the controllable. We set out a plan at the beginning of the year to do just that, and we're executing against that plan. I'm proud of our team's efforts and thank them for their continued dedication.

歸根究底，我們的重點是控制可控的事情。我們在今年年初制定了一個計劃來做到這一點，我們正在按照該計劃執行。我為我們團隊的努力感到自豪，並感謝他們的持續奉獻。

All this said, we don't recognize or -- we recognize that this won't translate into immediate recovery from a financial performance perspective. That wasn't our expectation nor should it be yours, but they're the right actions to help us navigate the current challenges.

綜上所述，我們不認識或 - 我們認識到，從財務績效的角度來看，這不會轉化為立即復甦。這不是我們的期望，也不應該是您的期望，但它們是幫助我們應對當前挑戰的正確行動。

Importantly, we participate in an industry that has many long-term and sustainable tailwinds, and it's very easy to lose sight of that when you're on the downside of a cycle. But cyclical downturns eventually come to an end and the long-term growth opportunities in front of us are very real.

重要的是，我們參與的行業有許多長期和可持續的有利因素，當你處於週期的下行時期時，很容易忽略這一點。但周期性衰退最終會結束，我們面前的長期成長機會是非常真實的。

During our comments today, we'll expand on all of these concepts and why we believe we're taking the right actions to manage the current environment and preserve our long-term flexibility.

在今天的評論中，我們將詳細闡述所有這些概念，以及為什麼我們相信我們正在採取正確的行動來管理當前環境並保持我們的長期靈活性。

Let me begin with an update on some of our key initiatives starting in the commercial area. As I mentioned on our last call, we are instilling a renewed focus on a customer first mantra, as meeting the needs of our customers must be central to everything we do.

首先讓我介紹一下我們在商業領域開始的一些關鍵舉措的最新情況。正如我在上次電話會議中提到的，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的一切的核心。

We continue to execute our customer engagement strategy, reinforcing the importance of our relationship with our customer and the investments we're making on our customer value proposition to further differentiate GrafTech from our competitors.

我們繼續執行我們的客戶參與策略，加強我們與客戶關係的重要性以及我們對客戶價值主張的投資，以進一步使 GrafTech 從競爭對手中脫穎而出。

For example, our initiative to expand our product offering by adding an 800 millimeter supersize electrode to our portfolio remains on track with initial customer trials expected to occur later this quarter. We've expanded the breadth of our architect system as part of building upon our best in class technical service capabilities.

例如，我們透過在我們的產品組合中添加 800 毫米超大電極來擴展我們的產品供應的計劃仍在按計劃進行，預計將於本季度晚些時候進行初步客戶試驗。作為建構我們一流技術服務能力的一部分，我們擴展了架構師系統的廣度。

We also continue to expand our first principles, understanding of graphite electrodes building on more than 135 year legacy of research and development of graphite and carbon based solutions. We've invested in our production capabilities and are the only graphite electrode producer with the capability to produce connecting pins on two different continents.

我們也繼續擴展我們的首要原則，以超過 135 年的石墨和碳基解決方案研發經驗為基礎，對石墨電極的理解。我們對生產能力進行了投資，是唯一一家有能力在兩個不同大陸生產連接銷的石墨電極生產商。

In addition, we're building up our connecting point inventory levels, and we are on track to have 12 months of inventory on hand by the end of this year. All of these examples demonstrate the investments we are making to support our ability to meet the needs of our customers now and into the future.

此外，我們正在建立連接點庫存水平，預計到今年年底我們的庫存量將能夠滿足 12 個月的需求。所有這些例子都表明我們正在進行投資，以支持我們滿足客戶現在和未來需求的能力。

And as demonstrated by the feedback I'm receiving from our customers, including a number of interactions which have taken place in recent weeks, our investments in these areas are resonating. Our customer engagement efforts, coupled with our compelling value proposition, contributed to a 6% sequential improvement in our sales volume for the second quarter.

正如我從客戶那裡收到的回饋（包括最近幾週發生的一些互動）所證明的那樣，我們在這些領域的投資正在引起共鳴。我們的客戶參與努力，加上令人信服的價值主張，使我們第二季度的銷售量環比增長了 6%。

Further, we continue to expect sales volume growth for the full year compared to 2023 as we continue to regain lost market share. But more importantly, our customer-centric mindset is all about the long term. It's about strengthening relationships with existing customers, while fostering new relationships with prospective customers that are mutually beneficial for years to come.

此外，隨著我們繼續奪回失去的市場份額，我們繼續預計全年銷量將較 2023 年有所增長。但更重要的是，我們以客戶為中心的心態是長遠的。這是為了加強與現有客戶的關係，同時與潛在客戶建立新的關係，在未來幾年內互惠互利。

To that point, as we mentioned on our last call, we are pleased to have our long-standing and our largest LTA arbitration behind us, removing a substantial risk to our financial position. And more importantly, it allows us to focus our energy on the commercial relationship with this customer.

就這一點而言，正如我們在上次電話會議中提到的那樣，我們很高興我們長期且最大的長期協議仲裁為我們提供了支持，消除了我們財務狀況的重大風險。更重要的是，它使我們能夠將精力集中在與該客戶的商業關係上。

Beyond commercial, let me highlight a few accomplishments across other areas of our business. In operations our facilities continue to run well as they execute our production plans. And we are doing this safely as our total reportable incident rate remains significantly below the prior year level.

除了商業之外，讓我強調我們業務其他領域的一些成就。在營運中，我們的設施在執行我們的生產計劃時繼續運作良好。我們正在安全地執行此操作，因為我們的總可報告事故率仍遠低於前一年的水平。

Ultimately, this is the most important thing we do, and I commend the team for their ongoing commitment to safety. Our initiatives to address key elements of our cost structure are also progressing well. During the second quarter, we safely and thoughtfully wind down the production activities at St. Mary's.

最終，這是我們所做的最重要的事情，我讚揚團隊對安全的持續承諾。我們解決成本結構關鍵要素的措施也進展順利。在第二季度，我們安全、周到地結束了聖瑪麗的生產活動。

In addition, we have completed the activities related to the reduction in our overhead structure. Overall, we are on track to achieve the projected $25 million of annualized cost savings from these initiatives. In addition, the other actions we have taken to reduce our variable costs and control overall spending levels are already paying off.

此外，我們也完成了與減少管理費用結構相關的活動。總體而言，我們有望透過這些舉措實現預計每年節省 2,500 萬美元的成本。此外，我們為降低變動成本和控制整體支出水準所採取的其他行動已經取得了成效。

We saw further sequential decline in our cash costs on a per metric ton basis in the second quarter and have seen an 18% reduction in this metric in the first half of 2024 compared to the first half of 2023. And we remain on track to achieve a mid-teen percentage point decline in our full year cash cost on a per metric ton basis compared to 2023.

我們看到第二季每噸現金成本進一步下降，與 2023 年上半年相比，2024 年上半年指標下降了 18%。與 2023 年相比，我們仍有望實現全年每噸現金成本下降 15 個百分點左右。

In the EV space, we continue to progress our capabilities and to participate in the growing demand for petroleum needle coke and synthetic graphite for anodes for lithium-ion batteries. During the second quarter, we received regulatory approval for the permit application. We filed last year related to a potential expansion of Seadrift production capacity.

在電動車領域，我們不斷提高我們的能力，並參與鋰離子電池陽極用石油針狀焦和合成石墨日益增長的需求。第二季度，我們獲得了監管部門對許可證申請的批准。我們去年提交了 Seadrift 產能潛在擴張的申請。

And at the same time, we are making investments within our R&D function, including pilot scale assets in our technical center. This will advance our capabilities as it relates to anode material. This remains a dynamic and exciting opportunity with our assets and expertise position us well to participate in this demand growth.

同時，我們正在研發部門進行投資，包括技術中心的中試規模資產。這將提高我們在陽極材料方面的能力。這仍然是一個充滿活力和令人興奮的機會，我們的資產和專業知識使我們能夠很好地參與這項需求成長。

In the area of sustainability, we continue to make good progress on our initiatives. Earlier this month, we published our latest sustainability report, encourage everyone to take a look at it. We continue to be good stewards in the communities in which we operate, both from an environmental perspective, but also having a positive impact to our community engagement efforts.

在永續發展領域，我們的舉措持續取得良好進展。本月初，我們發布了最新的永續發展報告，鼓勵大家來看看。我們繼續成為我們營運所在社區的好管家，無論是從環境角度來看，還是對我們的社區參與工作產生積極影響。

In summary, in light of the challenging near-term industry dynamics. We set out a plan and we're executing against it. We believe these are right steps to position GrafTech to benefit as the global steel market rebounds.

總之，鑑於近期產業動態充滿挑戰。我們制定了一個計劃，並且正在按照它執行。我們相信，這些都是正確的步驟，可以讓 GrafTech 在全球鋼鐵市場反彈之際受益。

Longer term is decarbonization efforts further drive a shift to electric arc furnace steelmaking and higher graphite electrode demand, we are poised to capitalize on this anticipated growth. I'll explain later in our prepared remarks.

從長遠來看，脫碳工作將進一步推動向電弧爐煉鋼的轉變和更高的石墨電極需求，我們準備利用這一預期的增長。我稍後將在我們準備好的發言中進行解釋。

Overall, we are proud of our recent accomplishments and remain confident in and emerging from this period as a stronger GrafTech. Let me turn it over to Jeremy to provide more color on the current state of the industry and our commercial performance.

總體而言，我們對最近的成就感到自豪，並對這段時期作為更強大的 GrafTech 的發展充滿信心。讓我將其轉交給傑里米，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 by briefly expanding on Tim's comment about our safety performance. Safety is a core value at GrafTech and with a year to date recordable incident rate that show significant improvement over our solid performance in 2023, we're pleased with the ongoing momentum.

謝謝蒂姆，大家早安。在提供業界最新動態之前，我將首先簡要闡述蒂姆對我們安全績效的評論。安全是 GrafTech 的核心價值，今年迄今為止的可記錄事故率表明我們在 2023 年的穩健表現基礎上有了顯著改善，我們對持續的勢頭感到滿意。

Sending our employees home safely at the end of every day is our most important priority, and I would like to join Tim and commending all of our team members for their focus on this objective.

每天結束時讓我們的員工安全回家是我們最重要的優先事項，我想和蒂姆一起讚揚我們所有團隊成員對這一目標的關注。

Let me now turn to the next slide to discuss the commercial environment. As Tim indicated, we operate in a cyclical industry and currently find ourselves in a challenging part of the cycle, reflecting a constrained global steel industry.

現在讓我轉到下一張投影片來討論商業環境。正如蒂姆所指出的那樣，我們在一個週期性行業中運營，目前發現自己正處於週期的一個充滿挑戰的部分，這反映出全球鋼鐵業受到限制。

Earlier this week, the World Steel Association published their most recent steel production statistics. On a global basis, steel production outside of China was approximately 212 million tons in the second quarter of 2024 which was essentially flat to the prior year. The global steel capacity utilization rate outside of China also remained flat at 69%.

本週早些時候，世界鋼鐵協會公佈了最新的鋼鐵產量統計數據。從全球來看，2024年第二季中國以外的鋼鐵產量約為2.12億噸，與去年基本持平。中國以外的全球鋼鐵產能利用率也維持在69%的水準。

Looking at some of our key commercial regions. For North America, steel production was down 5% in the second quarter on a year-over-year basis, reflecting a slight dip in what has been a relatively stable steel region.

看看我們的一些主要商業區域。北美地區第二季鋼鐵產量年減 5%，反映出相對穩定的鋼鐵地區略有下降。

Steel output in the EU increased 3%, although it remains well below historical production and utilization rates for that region. These dynamics within the global steel industry have in turn, resulted in persistent challenges in the commercial environment for graphite electrodes.

歐盟的鋼鐵產量增加了 3%，但仍遠低於該地區的歷史產量和利用率。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。

Specifically, industry wide demand for graphite electrodes has remained weak with challenging pricing dynamics persisting in most regions. To expand on pricing, the graphite electrode industry continues to suffer from low capacity utilization.

具體而言，整個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存在挑戰。為了擴大定價，石墨電極產業持續遭受產能利用率低的困擾。

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 declining further away.

儘管需求環境疲軟，但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，價格進一步下降。

As we've discussed in the past, with these export dynamics, we see a knock-on pricing effect in tariff protected countries such as those within the EU as Tier 1 competitors have continued to lower prices in these regions to support volume.

正如我們過去討論的那樣，透過這些出口動態，我們看到關稅保護國家（例如歐盟境內的國家）產生了連鎖定價效應，因為一級競爭對手繼續降低這些地區的價格以支撐銷售量。

As we noted last quarter, we are also seeing this dynamic play out in the US, with prices softening further of late, all of which represent challenges we must manage in return.

正如我們在上季度指出的那樣，我們也看到這種動態在美國上演，價格最近進一步走軟，所有這些都是我們必須應對的挑戰。

With that background, let's turn to the next slide for more details on our results. Production volume in the second quarter of 2024 was 27,000 metric tons, which resulted in our capacity utilization rate increasing by 60%.

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年第二季產量為27,000噸，產能利用率提高60%。

Our sales volume was nearly 26,000 metric tons, which was above our stated outlook for the quarter. Shipments for the second quarter of 2024 included 23,000 metric tons of non-LTA sales at a weighted average realized price of approximately $4,300 per metric ton and approximately 3,000 metric tons sold under our LTAs at a weighted average realized price of approximately $8,300 per metric ton.

我們的銷量接近 26,000 噸，高於我們對本季的預期預期。2024 年第二季的出貨量包括23,000 噸非長期協議銷售，加權平均實現價格約為每噸4,300 美元，以及根據我們的長期協議銷售的約3,000 噸，加權平均實現價格約為每噸8,300 美元。

Expanding on our weighted average price for non-LTA sales. This represented a 23% year-over-year decline and a sequential decline from the first quarter of approximately 2%. Net sales in the second quarter decreased 26% compared to the second quarter of 2023, driven by the lower pricing, along with the ongoing shift in the mix of our business from LTA to non LTA volume.

擴大非長期協議銷售的加權平均價格。這比去年同期下降了 23%，比第一季環比下降了約 2%。與 2023 年第二季相比，第二季的淨銷售額下降了 26%，這是由於定價較低以及我們的業務組合不斷從 LTA 數量轉向非 LTA 數量的推動。

Looking ahead, 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 response, we remain selective in the commercial opportunities we are choosing to pursue with a focus on competing responsibly.

展望未來，由於已經提到的原因，我們預計短期內全產業對石墨電極的需求將保持疲軟，價格壓力將持續存在。作為回應，我們對我們選擇追求的商業機會保持選擇性，重點是負責任地競爭。

We expect our sales volume in the third quarter of 2024 to be broadly in line with sales volume in the second quarter of 2024. Further, we continue to expect a modest year-over-year improvement in sales for the full year.

我們預計 2024 年第三季的銷售量將與 2024 年第二季的銷售量大致一致。此外，我們繼續預期全年銷售額將年比小幅改善。

Longer-term as the global steel market rebounds and the shift to electric arc furnace steelmaking continues. This will lead to an improved commercial environment for the graphite electrode industry. GrafTech remains well positioned to capitalize as the electrode demand recovers.

長期來看，隨著全球鋼鐵市場的反彈以及向電弧爐煉鋼的轉變仍在繼續。這將改善石墨電極產業的商業環境。隨著電極需求的復甦，GrafTech 仍處於有利的資本利用狀態。

Our customer value proposition remains intact and 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, best-in-class customer technical services and solutions that are offered to customers at no incremental cost and a focus on continually expanding our commercial and product offerings, some of which Tim spoke to earlier.

我們的客戶價值主張保持不變，包括策略性定位的製造足跡，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，為客戶提供一流的客戶技術服務和解決方案，無需增加成本，並專注於不斷擴大我們的商業和產品供應，蒂姆之前曾與其中一些人交談過。

Overall, we believe we provide a compelling value proposition to our customer, and we will compete on more than just price.

總的來說，我們相信我們為客戶提供了令人信服的價值主張，我們將不僅僅在價格上競爭。

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. For the second quarter of 2024, we had a net loss of $15 million or $0.06 per share. Adjusted EBITDA was $14 million in the second quarter compared to adjusted EBITDA of $26 million in the second quarter of 2023.

謝謝你，傑瑞米。2024 年第二季度，我們的淨虧損為 1,500 萬美元，即每股虧損 0.06 美元。第二季調整後 EBITDA 為 1,400 萬美元，而 2023 年第二季調整後 EBITDA 為 2,600 萬美元。

This decline reflected lower weighted average pricing and the continued shift in the mix of our business toward non-LTA volume. These factors were partially offset by an 18% year over year reduction in cash cost on a per metric ton basis.

這一下降反映了加權平均定價的降低以及我們的業務組合持續轉向非長期協議數量。這些因素被每噸現金成本年減 18% 所部分抵銷。

In addition, second quarter results included a $9 million benefit related to the final award in a long-standing LTA arbitration. And as this represented a reimbursement of legal fees and other related expenses, it was recorded as a reduction in selling and administrative expenses.

此外，第二季業績還包括與長期長期協議仲裁的最終裁決相關的 900 萬美元收益。由於這代表了法律費用和其他相關費用的報銷，因此被記錄為銷售和管理費用的減少。

Now let me expand on the topic of our cash cost of goods sold. As shown in the reconciliation provided in our earnings call materials posted on our website our second quarter 2024 cash COGS per metric ton were approximately $4,300, which was in line with our expectations for the quarter.

現在讓我擴展一下我們銷售商品的現金成本的主題。正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，我們 2024 年第二季每噸現金 COGS 約為 4,300 美元，這符合我們對該季度的預期。

Contributing to the 18% decline on a year-over-year basis was a benefit of $6 million in the second quarter or approximately $230 per metric ton, reflecting the portion of the lower of cost of market inventory write-down recorded in prior periods that was related to the inventory sold in this quarter.

年比下降 18% 的原因是第二季度收益 600 萬美元，即每噸約 230 美元，反映了前期記錄的市場庫存減記成本較低部分與本季度銷售的庫存有關。

However, the majority of the year-over-year cost improvement reflected two key drivers. And let me provide some color on each one. First, as part of addressing key elements of our cost structure, our efforts related to variable cost are already yielding benefits.

然而，成本同比改善的大部分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，作為解決成本結構關鍵要素的一部分，我們在變動成本方面的努力已經產生了效益。

Specifically, our technical and operational teams continued to work on engineering costs out of our manufacturing processes without compromising quality and 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.

具體來說，我們的技術和營運團隊在不影響品質和性能的情況下，繼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。

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

其次，由於生產水準較低，我們加速確認的固定成本水準較去年同期下降。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，這些成本本來會被列入庫存。

In the second quarter of this year, as utilization rates at our graphite electrode and Seadrift facilities increased, we recognized approximately $1 million of such costs compared to approximately $10 million in the second quarter of 2023.

今年第二季度，隨著石墨電極和 Seadrift 設施利用率的提高，我們確認了約 100 萬美元的此類成本，而 2023 年第二季度約為 1000 萬美元。

And lastly, the cost savings related to idling our St. Mary's facilities are beginning to flow through in the second quarter. Reflecting the progress we're making on our cost structure. We continue to anticipate a mid-teen percentage point decline in our cash cost per metric ton for 2024 compared to the full year cash COGS per metric ton for 2023 of just over $5,500.

最後，與閒置聖瑪麗設施相關的成本節省將在第二季開始顯現。反映我們在成本結構上的進展。我們繼續預計，與 2023 年全年每公噸現金成本略高於 5,500 美元相比，2024 年每公噸現金成本將下降 15 個百分點左右。

For the first six months of the year, our cash COGS per metric ton was approximately $4,500, which is an 18% decline compared to the first half of 2023. Therefore, as the math would imply, we expect to see a sequential increase in our cash COGS per metric ton for the second half of 2024 as compared to the first half of 2024.

今年前六個月，我們每噸的現金銷貨成本約為 4,500 美元，與 2023 年上半年相比下降了 18%。因此，正如數學所暗示的那樣，與 2024 年上半年相比，我們預計 2024 年下半年每公噸的現金銷售成本將連續增加。

Among other factors this expectation reflects, first the benefit from the utilization of the previously recorded lower of cost or market inventory write-down being more heavily weighted toward the first half of 2024. Second, seasonally higher energy cost for our European facilities in the second half of 2024.

這項預期反映的其他因素包括，首先是利用先前記錄的較低成本或市場庫存減記所帶來的好處，在 2024 年上半年得到更大的權重。其次，2024 年下半年我們歐洲工廠的能源成本將出現季節性上漲。

And third, the impact of upcoming planned production declines on fixed cost absorption. And specific to the plant production declines this relates to normal summer shutdowns at our European electrode facilities and our planned turnaround activities at our Seadrift needle coke facility, which take place every 18 months to three years.

第三，即將到來的計畫產量下降對固定成本吸收的影響。具體到工廠產量下降，這與我們歐洲電極工廠的正常夏季停工以及我們的 Seadrift 針狀焦工廠計劃的周轉活動有關，這些活動每 18 個月到三年進行一次。

These planned shed maintenance events are scheduled to take place later in the third quarter. So however, despite the quarter-to-quarter lumpiness in cost recognition, the key point is that with the actions we're taking, our overall cost structure is moving in the right direction for 2024, and we would anticipate costs to decline further as we look ahead to 2025.

這些計劃中的棚屋維護活動計劃於第三季稍後進行。因此，儘管成本確認逐季度出現波動，但關鍵是，透過我們正在採取的行動，我們的整體成本結構將在 2024 年朝著正確的方向發展，並且我們預計成本將進一步下降，因為我們展望2025 年。

Now, turning to cash flow. For the second quarter of 2024 cash used in operating activities was $37 million and adjusted free cash flow was a cash usage of $44 million. As a reminder, our semi-annual interest payments of $34 million are made in the second and in the fourth quarter of the year.

現在，轉向現金流。2024 年第二季度，經營活動使用的現金為 3,700 萬美元，調整後自由現金流為 4,400 萬美元。提醒一下，我們每半年支付 3,400 萬美元的利息是在今年第二和第四季支付的。

As it relates to working capital inventory levels increased slightly during the second quarter. And however, this was an intentional build in advance of the seasonal production declines, which I just spoke to.

由於與營運資本庫存水準有關，第二季略有增加。然而，這是在我剛剛談到的季節性產量下降之前有意建立的。

As we move through the back half of 2024, we remain focused on reducing our overall inventory levels as part of our initiatives. We continue to expect the net impact of working will be neutral to our full year cash flow performance.

進入 2024 年下半年，作為我們舉措的一部分，我們仍然專注於降低整體庫存水準。我們仍然預期工作的淨影響對我們全年現金流表現將是中性的。

And lastly, on cash flow, we continue to anticipate our full year 2024 capital expenditures will be in the range of $35 million to $40 million.

最後，在現金流量方面，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。

Moving to the slide. We ended the second quarter with a liquidity position of $232 million, consisting of $121 million of cash and $111 million available under our revolving credit facility. This reflects the financial covenants that limits borrowing availability under our revolver in certain circumstances. More importantly, we do not anticipate the need to borrow against the revolver in 2024.

轉到幻燈片。截至第二季末，我們的流動性部位為 2.32 億美元，其中包括 1.21 億美元現金和循環信貸額度下的 1.11 億美元。這反映了在某些情況下限制我們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。

Further, let me add that we have no debt maturities until the end of 2028. Now let me turn the call back over to Tim for some final comments on our outlook.

此外，我要補充一點，我們在 2028 年底前沒有債務到期日。現在讓我把電話轉回給提姆，請他對我們的前景做出一些最後的評論。

Thanks, Catherine. To summarize our comments on the quarter and year to date results. While we're not satisfied with this level of performance. GrafTech continues to deliver on our stated outlook and initiatives to control the controllable.

謝謝，凱瑟琳。總結我們對本季和年初至今業績的評論。雖然我們對這樣的表現水準並不滿意。GrafTech 繼續兌現我們既定的前景和舉措，以控制可控因素。

We are pleased with the team's execution and remain confident in our ability to manage the near-term headwinds. And further, there are many reasons for optimism about the longer-term prospects for our company as we look ahead.

我們對團隊的執行力感到滿意，並對我們應對近期不利因素的能力充滿信心。此外，展望未來，我們有很多理由對我們公司的長期前景感到樂觀。

While we remain cautious on the near term steel industry trends. As we've mentioned, cyclical downturns eventually come to an end. World Steel Association's most recent short term forecast on global steel demand calls for low to mid-single digit percentage increases in 2025 for nearly all of our key regions, including the EU, the Americas, the Middle East and in Africa.

但我們對近期鋼鐵業趨勢仍持謹慎態度。正如我們所提到的，週期性衰退最終會結束。世界鋼鐵協會對全球鋼鐵需求的最新短期預測顯示，到 2025 年，幾乎所有主要地區（包括歐盟、美洲、中東和非洲）的鋼鐵需求將出現低至中個位數百分比成長。

Longer term, as I noted earlier, decarbonization efforts are driving a transition in the approach to steelmaking with electric arc furnaces continuing to increase the share of total steel production. Based on updated production statistics published last month by the World Steel Association, the EAF method of steelmaking accounted for 50% of global steel production outside of China in 2023, an increase from 44% in 2015 with market share growth in nearly every region.

從長遠來看，正如我之前指出的，脫碳工作正在推動煉鋼方法的轉變，電弧爐在鋼鐵總產量中的份額持續增加。根據世界鋼鐵協會上個月發布的最新產量統計數據，到2023年，電弧爐煉鋼法將佔中國以外全球鋼鐵產量的50%，較2015年的44%有所增加，幾乎每個地區的市場份額都有所增長。

And this trend of EAF share growth is expected to continue. We are tracking approximately 200 announced projects from steel manufacturers regarding plans for new EAF facilities or expansion of existing facilities. Outside of China, these projects are expected to result in over 170 million metric tons per year of new EAF steel production capacity coming online by the end of the decade with much of this growth concentrated in our key commercial regions.

預計電弧爐份額成長的趨勢將持續下去。我們正在追蹤鋼鐵製造商宣布的約 200 個項目，涉及新電弧爐設施或現有設施擴建計劃。在中國以外，這些項目預計到本世紀末將每年新增超過 1.7 億噸電弧爐鋼鐵產能，其中大部分成長集中在我們的主要商業地區。

This in turn is expected to drive incremental demand for graphite electrodes. In fact, 170 million metric tons of EAF steel capacity, even at conservative assumptions around utilization rates could translate into about 200,000 metric tons per year of incremental demand for graphite electrodes.

預計這將推動石墨電極的需求增加。事實上，即使在利用率的保守假設下，1.7 億噸的電弧爐鋼鐵產能也可能轉化為每年約 20 萬噸的石墨電極增量需求。

That would be more than 25% of the total manufacturing capacity that currently exists outside of China. All in this would drive graphite electrode demand increasing at a compound annual growth rate of 3% to 4% through the end of the decade.

這將超過目前中國境外總製造能力的 25%。所有這些都將推動石墨電極需求在本世紀末以 3% 至 4% 的複合年增長率成長。

Importantly, about 80% of that growth would take place in regions where we already have a strong presence. As the strategic actions we are taking to reduce costs have been designed to preserve our competitive advantage that we have spoken to.

重要的是，大約 80% 的成長將發生在我們已經擁有強大影響力的地區。正如我們所說，我們正在採取的降低成本的策略行動旨在保持我們的競爭優勢。

We view GrafTech as being well positioned to capitalize on long-term industry tailwinds. Further anticipated demand for growth in petroleum needle coke will also present a tailwind for our business given our substantial vertical integration.

我們認為 GrafTech 處於有利地位，可以利用長期的行業順風車。鑑於我們的大規模垂直整合，對石油針狀焦成長的進一步預期需求也將為我們的業務帶來推動力。

We expect this demand for high-quality needle coke to be driven by two factors. First, the demand for graphite electrodes from the ongoing shift to EAF steelmaking I just spoke to. And second and more importantly, the demand for synthetic graphite anode material for use in electrical vehicle batteries were needle coke as agreed, key precursor material.

我們預計高品質針狀焦的需求將由兩個因素驅動。首先，我剛才談到，不斷轉向電爐煉鋼對石墨電極的需求。其次，更重要的是，用於電動車電池的合成石墨陽極材料的需求是針狀焦，這是商定的關鍵前驅材料。

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 graphite electrodes.

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石墨電極更高的市場定價。

This again reinforces the key competitive advantage that our substantial vertical integration into needle coke affords us as it relates to our graphite electrode business. Beyond graphite electrodes, we continue to evaluate ways to leverage our assets and technical know-how to directly participate in the demand growth for anode material for the EV market.

這再次強化了我們對針狀焦的實質垂直整合為我們提供的關鍵競爭優勢，因為它與我們的石墨電極業務相關。除了石墨電極之外，我們還繼續評估如何利用我們的資產和技術知識來直接參與電動車市場陽極材料需求的成長。

There's a strong desire by Western OEMs and supported by Western governments to establish EV battery supply chains that are independent of the current reliance on China.

西方原始設備製造商強烈希望在西方政府的支持下建立獨立於目前對中國的依賴的電動車電池供應鏈。

Our unique manufacturing footprint would allow us to participate in the establishment of the supply chains in two potential ways. First, as a supplier of petroleum needle coke, given that we are only one of two Western manufacturers of these key material.

我們獨特的製造足跡將使我們能夠以兩種潛在的方式參與供應鏈的建立。首先，身為石油針狀焦供應商，我們只是這些關鍵材料的兩家西方製造商之一。

And second, as one of the largest Western operators of gravitation capacity, we could leverage these assets to convert needle coke into synthetic graphite. We continue to hold dialogue with leading participants in this space and remain excited about the opportunity about the opportunity and the development of the supply chain and our associated prospects.

其次，作為西方最大的重力產能營運商之一，我們可以利用這些資產將針狀焦轉化為合成石墨。我們繼續與該領域的領先參與者進行對話，並對供應鏈的機會和發展以及我們的相關前景保持興奮。

In closing, this is a pivotal time for GrafTech with many challenges still in front of us. Yet we're up to the challenge, and we continue to believe GrafTech will successfully manage through the near-term uncertainty and remain an industry leading supplier of mission critical products to the EAF industry.

最後，對於 GrafTech 來說，這是一個關鍵時刻，我們仍然面臨許多挑戰。然而，我們已經迎接了挑戰，我們仍然相信 GrafTech 將成功應對近期的不確定性，並繼續成為 EAF 行業關鍵任務產品的行業領先供應商。

Longer term, we possess a distinct set of assets, capabilities and competitive advantages to capitalize on growth opportunities. For these reasons, we are confident we can return GrafTech to the position of generating great value for its stockholders.

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。基於這些原因，我們有信心讓 GrafTech 重新回到為其股東創造巨大價值的位置。

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)

（操作員說明）

Bill Peterson, JP Morgan.

比爾彼得森，摩根大通。

Yeah. Good morning team. Nice job on the continued efforts on the cost side. Although you mentioned for the guidance does imply a step up in costs through the back half of the year, you discussed the downtime. I believe you also may have seasonal energy impacts in Europe.

是的。早上好，團隊。在成本方面的持續努力做得很好。儘管您在指導中提到的確實意味著今年下半年的成本會增加，但您討論了停機時間。我相信歐洲也可能受到季節性能源影響。

But I guess first on these outages, how long are these outages planned to be? And then taken into account the shutdowns and maybe potential energy impacts. How should we think about the cash costs at an absolute level in the third quarter and then the fourth quarter? Should we assume higher in the third quarter than declining in the fourth quarter? How should we think about the costs from here?

但我想先關於這些中斷，計劃中斷多久？然後考慮到停工和潛在的能源影響。我們該如何看待第三季和第四季絕對水準的現金成本？我們是否應該假設第三季的成長高於第四季的下降？我們該如何考慮這裡的成本？

Yeah. Thanks. We'll split that up. I'll start talking about the shutdowns. And then Catherine can talk a little bit about the financial impact. So the shutdowns are typically two to three weeks. We do it on a little bit of a rolling basis through the plants in order to make sure that we have some amount of staff on site so that we can respond to any customer demands that may change over the course of the shutdown.

是的。謝謝。我們會把它分開。我將開始談論關閉。然後凱瑟琳可以談談財務影響。因此，停工時間通常為兩到三週。我們在工廠中以滾動的方式進行，以確保我們在現場有一定數量的員工，以便我們能夠響應在停工期間可能發生變化的任何客戶需求。

And so I would generally anticipate that for Europe, I think two to three weeks for most of the operating action there. In Seadrift, it will be something similar focused primarily on the calcination portion of the plant. And so again, think of roughly three weeks for that as well.

因此，我通常會預計，對於歐洲，我認為那裡的大部分營運行動需要兩到三週的時間。在 Seadrift 中，它將是類似的東西，主要集中在工廠的煅燒部分。同樣，也請考慮大約三週的時間。

But let me hand it over to Catherine and talk about the financial question.

但讓我把它交給凱瑟琳，談談財務問題。

Thank you, Jeremy. Yes, Bill, so we have maintained our full year cost reduction estimate of a mid-teen percentage points decrease from the level of 2023, which was 5,500. So as I indicated earlier, for the second half of this year, we expect a little bit of a sequential uptick versus where we landed for the first half.

謝謝你，傑瑞米。是的，比爾，所以我們維持全年成本削減預期，即比 2023 年 5,500 個百分點下降中位數。因此，正如我之前指出的，今年下半年，我們預計與上半年相比會出現一些連續上升。

Now -- and I mentioned that earlier seasonally higher energy cost for our European facilities in the second half of 2024 will be a factor. And the benefit from the utilization of the previously recorded lower up cost or market inventory write-down was certainly more heavily weighted to what the first half of 2024, then it will be for the second half.

現在，我提到過，我們歐洲設施在 2024 年下半年出現的季節性能源成本上升將是一個因素。2024 年上半年，利用先前記錄的較低成本或市場庫存減記帶來的收益肯定會比下半年更重要。

And then lastly, as we spoke about with Jeremy, we have the impact of the planned maintenance shutdown on the absorption of our fixed cost. But overall, I think the key point to keep here in mind is that on a full year basis, our overall cost structure is moving in the right direction, reflecting the actions we're taking. And we would anticipate a further after in 2025 that our cost will continue coming down.

最後，正如我們與傑里米談論的那樣，計劃中的維護停工對固定成本的吸收產生了影響。但總的來說，我認為要記住的關鍵點是，從全年來看，我們的整體成本結構正在朝著正確的方向發展，反映了我們正在採取的行動。我們預計 2025 年後我們的成本將繼續下降。

Okay. Thanks for that. Spot pricing fell another $100 per ton. So I guess, a less pronounced decline this quarter. However, on your commentary, it sounds like the competitive dynamics are still challenging, pricing remains challenging.

好的。謝謝你。現貨價格每噸再下跌 100 美元。所以我猜，本季的下降幅度不太明顯。然而，根據您的評論，聽起來競爭動態仍然具有挑戰性，定價仍然具有挑戰性。

So I guess how does the spot pricing decline compare to the latest needle coke prices you've been seeing. And I guess what are your directional pricing expectations both for your product as well as needle coke from here.

因此，我猜想與您所看到的最新針狀焦價格相比，現貨價格下降情況如何。我猜您對您的產品以及這裡的針狀焦的定向定價期望是什麼。

Yeah. Thanks, Bill, and good morning. I appreciate the questions. From a pricing perspective, and I think we said it a couple of times in our prepared remarks, right the competitive market and it continues to be a competitive market given the overall dynamics around supply and demand.

是的。謝謝，比爾，早安。我很欣賞這些問題。從定價的角度來看，我認為我們在準備好的發言中多次說過，競爭市場是正確的，考慮到供需的整體動態，它仍然是一個競爭市場。

And therefore, you're seeing that reflected in the spot pricing or the non-LTA pricing that we reported this quarter. I think those pressures are going to continue and they're going to persist. But one thing I think you have to keep in mind and we start to lose a little bit of visibility around pricing this time of year as the order book is largely locked in place and there's less volume being transacted broadly speaking.

因此，您會看到這一點反映在我們本季報告的現貨定價或非長期協議定價中。我認為這些壓力將會持續下去，並且將會持續下去。但我認為你必須記住一件事，每年這個時候我們開始失去一些定價的可見性，因為訂單簿基本上已鎖定，而且總體而言交易量減少。

But right now, I think our view is that challenging pricing is going to persist and we'll have a better read on that as we get into the negotiations with customers here in the third and fourth quarter. On the needle coke market, I would say we're still trading sideways compared to where we were in the second quarter, somewhere in around that $1,100 to $1,300 range depending on the grade of coke in the market.

但現在，我認為我們的觀點是，具有挑戰性的定價將持續存在，當我們在第三季和第四季與客戶進行談判時，我們將對此有更好的了解。在針狀焦市場上，我想說，與第二季度相比，我們的交易仍在橫盤整理，大約在 1,100 美元至 1,300 美元的範圍內，具體取決於市場上焦炭的等級。

So the needle coke side is stabilized in many respects, but would hope to see that start to trend in the right direction as you start to see demand picked up with maybe some better demand numbers out of the steel industry heading into 2025.

因此，針狀焦方面在許多方面都趨於穩定，但隨著您開始看到需求回升，進入2025 年鋼鐵行業可能會出現一些更好的需求數據，我們希望看到這種趨勢開始朝著正確的方向發展。

Great. Thanks, for that. And just a bit of housekeeping. So adding back the $9 million SG&A, but I guess take into account other actions you've been taking belt-tightening and other maybe productivity initiatives can you level set us on how we should think about SG&A for the third quarter and then trajectory thereon?

偉大的。謝謝，為此。以及一些家事服務。因此，再加上 900 萬美元的 SG&A，但我想考慮到您一直在採取的其他緊縮開支措施以及其他可能的生產力舉措，您能否讓我們了解應該如何考慮第三季度的 SG&A 及其軌跡？

I mean SG&A will remain at the run rate that you've seen, if you look at the first half of the year, excluding that $9 million benefit, I think we're seeing the impact of our rationalization activities. And this has started to show in our underlying costs for the second quarter in SG&A, we would expect that run rate to continue over the rest of the year.

我的意思是，SG&A 將保持您所看到的運行速度，如果您看看今年上半年，不包括 900 萬美元的福利，我認為我們正在看到合理化活動的影響。這已經開始體現在我們第二季的銷售、管理和行政費用的基本成本中，我們預計今年剩餘時間將繼續保持這種運作率。

Okay. Thanks. I'll pass on.

好的。謝謝。我會繼續。

Alex Hacking, Citi Research.

亞歷克斯‧哈金，花旗研究部。

Hi. I'd just quickly follow up on the pricing outlook. Based on your comments, it sounds like the realized spot price would be weaker in the second half of the year than the first half of the year. Is that a fair assumption? Or am I reading it too negative?

你好。我只是快速跟進定價前景。根據您的評論，聽起來下半年的現貨價格將比上半年弱。這是一個公平的假設嗎？還是我讀的太消極了？

Yeah, I mean, I think we continue to see challenges in the pricing also what's going to play into that as mix, right, and where we're delivering tons on a relative basis, right. Because that average that price the $4,300-plus that we reported is an average over all of the regions that we ship to. So I wouldn't sit here and say that we think there's a real rosy outlook for pricing as we look into the back half of the year, but mix will play into it as well.

是的，我的意思是，我認為我們繼續看到定價方面的挑戰，以及混合將發揮什麼作用，對吧，以及我們在相對基礎上交付大量的挑戰，對吧。因為我們報告的 4,300 美元以上的平均價格是我們運送到的所有地區的平均價格。因此，我不會坐在這裡說，我們認為，當我們展望今年下半年時，定價前景確實樂觀，但混合因素也將發揮作用。

Okay, thanks. And then I guess Bloomberg and some other media have reported that the company is working with advisors considering various different options to improve liquidity. Could you maybe comment on that if you're able to kind of what's under consideration and what will be the timeline. Thank you.

好的，謝謝。然後我猜彭博社和其他一些媒體報道說，該公司正在與顧問合作，考慮各種不同的選擇來提高流動性。如果您能夠了解正在考慮的內容以及時間表，您能否對此發表評論？謝謝。

Yeah. Thanks for that, Alex. And maybe let me start by just reiterating the comments that Catherine made on the liquidity front. We ended the quarter with $121 million of cash and a little more than $111 million of availability on the revolver.

是的。謝謝你，亞歷克斯。也許讓我先重申凱瑟琳在行動力方面發表的評論。本季末，我們擁有 1.21 億美元的現金和略高於 1.11 億美元的左輪手槍可用資金。

So $230 million-plus of total liquidity here at the end of the second quarter and again, don't feel or don't see a need or use of the revolver and feel good about the cash position for the foreseeable future. But I guess more specifically to your question, right, I think we've tried to be proactive since I joined the company on November of '21, I think we've tried to be proactive with our capital structure around refinancing the revolver, refinancing the term loan.

因此，第二季末的總流動性超過 2.3 億美元，並且再次感覺沒有或沒有看到左輪手槍的需要或使用，並且對可預見的未來的現金狀況感到良好。但我想更具體地回答你的問題，對吧，我認為自從我於21 年11 月加入公司以來，我們一直在努力積極主動，我認為我們一直在圍繞左輪手槍再融資、再融資等方面積極主動地調整我們的資本結構定期貸款。

And we continue to have conversations with advisors in various fronts around our capital structures and trying to be proactive. And I think that's a prudent move for any company and organization regardless if you're in the downside of a cycle or the upside of a cycle. I think we're always looking at our existing capital structure. Beyond that, I'm not going to comment on market speculation or rumors that are coming out of the media.

我們繼續與各方面的顧問圍繞我們的資本結構進行對話，並努力採取積極主動的態度。我認為這對任何公司和組織來說都是一個謹慎的舉動，無論你是處於週期的下行還是上行。我認為我們一直在關注現有的資本結構。除此之外，我不會對市場猜測或媒體傳出的謠言發表評論。

Okay, thanks. I'll leave it there and jump back in the queue.

好的，謝謝。我會把它留在那裡並跳回到隊列中。

Thanks, Alex.

謝謝，亞歷克斯。

Andy Jones, UBS.

安迪瓊斯，瑞銀。

Hi, just from a bigger-picture question on the structure of industry. I mean, if we've clearly seen this significant downside in pricing, I don't think it's a bit too much pushback on your comments about the demand growth will come from greater the EAF penetration in Europe and the US and probably elsewhere.

你好，只是從一個關於產業結構的大局問題來看。我的意思是，如果我們清楚地看到定價方面的這種顯著下降，我認為對於您關於需求增長將來自歐洲和美國以及可能其他地方的電弧爐滲透率提高的評論，我認為這並沒有太大的阻力。

But on the supply side this overcapacity issue, clearly process slight. What in your view can be done the change that in your core markets? I mean, are we -- is there any prospect of any sort of import protection coming at any point in the near future or any discussion about it?

但在供給方面這個產能過剩問題，顯然過程輕微。您認為可以採取哪些措施來改變您的核心市場？我的意思是，我們是否有可能在不久的將來任何時候採取任何形式的進口保護，或者對此進行任何討論？

Or any of your competitors, talking about likely to be taking out capacity soon? Or what in your view can be done by the industry to actually help to sort of correct the course of this year because it's a pretty ugly price chart when you look, I look at it on Bloomberg. Thanks.

或者您的任何競爭對手，談論可能很快就會耗盡產能？或者你認為業界可以做些什麼來真正幫助糾正今年的趨勢，因為當你看時，我在彭博社上看它時，這是一個相當醜陋的價格圖表。謝謝。

Yeah, thanks for that. And I've tried to touch on all of the points. Maybe let's start with how we view market recovery both in the shorter term and then into the medium and longer term. And it's really driven kind of by four things.

是的，謝謝你。我已經嘗試觸及所有要點。也許讓我們從如何看待短期以及中長期市場復甦開始。它實際上是由四件事驅動的。

One certainly is an improvement in demand, in particular in the EU. I think if you look at EU steel production levels are probably down 20% from the peak back in 2021. So any sort of meaningful uptick in your demand will help especially us given our geographical footprint. But I would say just the Western electrode industry more broadly.

其中之一當然是需求的改善，尤其是在歐盟。我認為如果你看看歐盟的鋼鐵產量水準可能比 2021 年的高峰下降了 20%。因此，考慮到我們的地理足跡，您的需求的任何有意義的成長都會對我們有所幫助。但我想說的是更廣泛的西方電極產業。

And two I think the continued growth of EAFs. We talked about the 170 million tons of new capacity coming online over the balance of the decade. Some of that is front-end loaded, and we'll start to see new mills come online in the geographies in which we have a significant presence here over the next couple of years that continued growth and the move to some of the new products we're offering will help on the demand front as well.

我認為第二點是漁業生態系統的持續成長。我們談到了這十年間新增產能 1.7 億噸。其中一些是前端加載的，我們將開始看到新工廠在我們在未來幾年擁有重要業務的地區上線，這些地區將持續增長並轉向我們的一些新產品我們提供的服務也將在需求方面有所幫助。

You mentioned supply reduction, supply reduction and supply rationalization is an important piece and really can be the thing that is a catalyst for near term reaction or impetus for pricing to change. We started back in the first quarter in February when we announced the idling of St. Marys and the rationalization of our footprint, and we took down 24,000 tons of production.

您提到減少供應、減少供應和供應合理化是一個重要組成部分，並且確實可以成為近期反應或定價變化動力的催化劑。我們從二月第一季開始，宣布聖瑪麗工廠閒置並合理化我們的足跡，並減少了 24,000 噸產量。

We felt that, that was the right step for us at the time. We've since seen one of our competitors take about 24,000 tons out of their footprint and announced the potential to take 24,000 tons out of their footprint. I mean, I think those are the moves that are needed when you find yourself in a market that's oversupplied in the West as it is today.

我們認為，這對當時的我們來說是正確的一步。此後，我們看到我們的一位競爭對手將其足跡減少了約 24,000 噸，並宣布有潛力將其足跡減少 24,000 噸。我的意思是，我認為當你發現自己身處當今西方供應過剩的市場時，就需要採取這些措施。

But I think there's room for more people to engage in kind of that rationalization as we go forward. China, I think is the fourth big piece in China certainly is the enemy that weighs on pricing the most. And I think China really that is probably driven by two things, one their domestic markets in terms of construction, their EV market overall steel production right now, it's -- construction is 30% of China's overall GDP and it's underperforming.

但我認為，隨著我們的前進，更多的人還有空間參與這種合理化。中國，我認為中國的第四大塊肯定是對定價影響最大的敵人。我認為中國這實際上可能是由兩件事驅動的，一是其國內市場的建築業，其電動車市場目前的整體鋼鐵產量，建築業佔中國 GDP 總量的 30%，但表現不佳。

So that's certainly weighing on the overall economy, which obviously impacts steel production which then impacts graphite electrode consumption domestically. And then they're announced transition from EAF steel production. Right now, China produces about 10% of its steel via EAFs, and that is was announced or they reconfirmed or reiterated their commitment to move to a 15% target.

因此，這肯定會影響整體經濟，這顯然會影響鋼鐵生產，進而影響國內石墨電極的消費。然後他們宣布從電弧爐鋼鐵生產轉型。目前，中國約 10% 的鋼鐵是透過電弧爐生產的，這一點已經宣布，或者他們再次確認或重申了向 15% 目標邁進的承諾。

Now we've heard this in the past and it hasn't come to fruition, but any sort of genuine effort to move the Chinese steel market from 10% to 15% will have a meaningful impact on not only EAF produced steel but graphite electrode consumption, right?

我們過去曾聽說過這種說法，但尚未實現，但任何將中國鋼鐵市場份額從10% 提高到15% 的真正努力，都將不僅對電弧爐生產的鋼材，而且對石墨電極產生有意義的影響。

You're talking 50 million tons of steel at that 5%, which is probably more than 80,000 tons of graphite electrode demand that would come along with it. So all of those things combined, I think help move the market.

以這 5% 計算，需要 5,000 萬噸鋼鐵，這可能超過 8 萬噸石墨電極的需求。因此，我認為所有這些因素結合起來有助於推動市場。

Some of them are shorter term in nature and some of them are kind of more structural returns to where the market historically has been, which would be around a $6,000 average price over the last 20 years or so. And this is really all absent some of the electric vehicle and needle coke demand elements that we've talked about on numerous occasions, right?

其中一些本質上是短期的，而另一些則是對市場歷史水平的結構性回報，即過去 20 年左右的平均價格約為 6,000 美元。這其實完全不存在我們多次討論過的一些電動車和針狀焦需求要素，對嗎？

We still firmly believe that we're going to see a Western supply chain for electric vehicles set up the demand for needle coke is going to increase exponentially here over the balance of the decade and being vertically integrated and having Seadrift as a strategic asset for the company will position us very well.

我們仍然堅信，我們將看到西方電動車供應鏈的建立，在這十年的餘下時間裡，針狀焦的需求將呈指標級增長，並進行垂直整合，並將Seadrift 作為戰略資產。

And all of that, I think is why we still have long term conviction on where the business can go, where the market's heading in. And now it's just a matter of us continuing to execute in the short term.

我認為這一切就是為什麼我們仍然對業務的發展方向和市場的發展方向抱持長期信念。現在只需要我們在短期內繼續執行。

Yeah, that makes sense. And on the policy side, do you see any proposals or any measures that have been tabled either in the EU or on the US side that would potentially be strict imports from markets like China?

是的，這是有道理的。在政策方面，您是否認為歐盟或美國提出的任何提案或措施可能會嚴格地從中國等市場進口？

Yeah. So just to level set, right, if you look at the landscape as it exists today, in the US, there are trade restrictions on Chinese imports ranging from 25% to 150%. The EU has restrictions on both Chinese electrodes and Indian electrodes.

是的。因此，就水平而言，如果你看看當今的情況，在美國，對中國進口的貿易限制從 25% 到 150% 不等。歐盟對中國焊條和印度焊條都有限制。

Chinese, I think 23% to 75% and then Indians are a little bit smaller at 7% to 15% depending on the size and the grade. So there are trade restrictions in place and we think they do have an impact and they work as they exist today.

中國人，我認為是 23% 到 75%，然後印度人要小一些，為 7% 到 15%，取決於體型和等級。因此，存在貿易限制，我們認為它們確實產生了影響，並且它們像今天一樣發揮作用。

I think everybody is always looking much like we see our customers on the steel side trying to protect their markets. I think we're no different in terms of looking for opportunities to strengthen our domestic position and support our businesses in the geographies that we operate in. So beyond that, I can't really comment on status and where that stands, but certainly something that everybody is always looking at.

我認為每個人總是看起來很像我們看到鋼鐵方面的客戶試圖保護他們的市場。我認為，在尋找機會加強我們的國內地位並支持我們在經營地區的業務方面，我們沒有什麼不同。除此之外，我無法真正評論現狀和現狀，但肯定是每個人都在關注的事情。

And just finally, any basically you see around the fact that, I guess in the EU there's been some move from some right wing populist parties making progress in various countries, obviously in the US. I guess the Trump presidency looks a bit more likely.

最後，基本上你所看到的事實是，我想在歐盟，一些右翼民粹主義政黨已經採取了一些行動，在各個國家取得了進展，顯然是在美國。我認為川普當選總統的可能性似乎更大一些。

I mean, could we see rollback on some of the proposed sort of decarbonization initiatives and subsidies for EVs and things like that. You see it a material risk to the electrode market in the medium term. If that penetration might slow down, for example, in Europe?

我的意思是，我們是否會看到一些擬議的脫碳措施和電動車補貼等的回滾。從中期來看，您認為這對電極市場構成重大風險。例如，在歐洲，滲透率是否會放緩？

Yeah, I've made it a habit of not trying to predict political outcomes, my entire career. So I'm not going to start now, certainly. But yeah, I mean, I think the impact on policy and regulation is something we keep an eye on.

是的，我已經養成了在整個職業生涯中不試圖預測政治結果的習慣。所以我當然不會現在就開始。但是，是的，我的意思是，我認為對政策和監管的影響是我們密切關注的。

Again, I think we believe that the decarbonization story and the electrification of the auto fleets, both in Europe and the US is a real story and those trends will continue. I'm sure we will continue to see twists and turns along the way as how it all comes to market.

再次，我認為我們相信歐洲和美國的脫碳故事和汽車電氣化是一個真實的故事，這些趨勢將繼續下去。我確信我們將繼續看到它進入市場的過程中的曲折。

But just the chart continues to go up into the right. It may not be in exactly straight line, but we still see this as the path we're heading to longer term and I think all of that is constructive for our business.

但只是圖表繼續往右上升。它可能不是完全直線，但我們仍然認為這是我們走向長期的道路，我認為所有這些對我們的業務都是建設性的。

Okay. Thank you very much.

好的。非常感謝。

Abe Landa, Bank of America.

阿貝·蘭達，美國銀行。

Good morning. Thanks for let me ask some questions. Maybe just start off, just a further pressure on liquidity. You kind of reiterated that you expect it to remain adequate for this year. But I guess what do you think about maybe financial tenant needs some additional liquidity for 2025. Is that something you would look to prior to the annual selling season in the fall? Or would you kind of wait until you see some more visibility there?

早安.謝謝你讓我問一些問題。也許這只是開始，只是流動性的進一步壓力。您重申，您預計今年的收入將保持充足。但我猜你覺得金融租戶 2025 年可能需要一些額外的流動性。在每年秋季的銷售季節之前，您會關注這一點嗎？或者你會等到那裡看到更多的能見度嗎？

Yeah. Thanks for that, Abe. I mean, again, reiterating where we sit today from a liquidity position, we feel good about our liquidity. If you look at the first half of the year, we used $54 million of cash. So let's call it on average $27 million a quarter.

是的。謝謝你，安倍。我的意思是，再次重申我們今天的流動性狀況，我們對流動性感覺良好。如果你看看今年上半年，我們使用了 5,400 萬美元的現金。因此，我們稱其為每季平均 2700 萬美元。

So we feel good about where our cash position otherwise is right now. We continue to look at our crystal ball going into the future and tried to see what '25 and beyond looks like. But again, I think we feel good about where we sit.

因此，我們對目前的現金狀況感到滿意。我們繼續展望未來，並試圖了解 25 年及以後會是什麼樣子。但同樣，我認為我們對自己的坐姿感覺良好。

Obviously, that will continue to be informed by conversations with customers and economic indicators and steel indicators that we continue to monitor. But otherwise, we're good with where we sit today.

顯然，這將繼續透過與客戶的對話以及我們繼續監控的經濟指標和鋼鐵指標來了解。但除此之外，我們對今天的位置很滿意。

Okay. And then thanks for that color on your lower cost or market of the inventories. Do you have a dollar amount? I know you are kind of did it on a per ton basis, but do you have a dollar amount in 2Q in the first half? And maybe what do you expect that impact in 3Q in the second half of the year?

好的。然後感謝您較低的成本或庫存市場的顏色。你有美元金額嗎？我知道你們是用噸計算的，但是你們上半年第二季有美元金額嗎？也許您預計下半年第三季的影響是什麼？

Yes. thank you for the question. As we indicated in our remarks the second quarter impact of the utilization of the lower cost to market reserves was about $230 benefit to our cash COGS. And it was somewhat in a $200 range in the first quarter of this year.

是的。謝謝你的提問。正如我們在評論中指出的那樣，第二季度利用較低的市場儲備成本對我們的現金銷貨成本產生了約 230 美元的影響。今年第一季的價格在 200 美元左右。

So as we move now into the second half of the year, we would expect roughly about half of that benefit only on a per metric ton basis. So call it about $100 per metric ton. That would be the expectation for the second half of the year.

因此，當我們現在進入今年下半年時，我們預計大約一半的收益將僅以每噸為基礎。所以稱之為每噸 100 美元左右。這將是對今年下半年的預期。

And if we were to kind of reverse out in the second quarter that $230, you kind of get up $4,550 give or take. And you kind of alluded to some potential improvements into 2025. I mean, I guess what is your ability to kind of improve from that call it $4,550 per metric ton level. Like what additional actions can we take beyond kind of the go-forward run rate?

如果我們要在第二季扭轉 230 美元，那麼您將獲得 4,550 美元的讓步。您提到了 2025 年的一些潛在改進。我的意思是，我猜想您從每噸 4,550 美元的水平上可以提高什麼能力。除了前進運行率之外，我們還可以採取哪些額外行動？

The biggest component over time on the cost is really our fixed cost absorption and ultimately, volume levels increasing across our manufacturing sites, higher production levels. Our variable costs, we're making really very good progress on it this year.

隨著時間的推移，成本的最大組成部分實際上是我們的固定成本吸收，最終，我們製造工廠的產量水準不斷增加，生產水準更高。我們的變動成本，今年我們在這方面取得了非常好的進展。

And if we expect it to stick, this would remain into '25 as well. So overall, I would say the most important parameters going forward will be the production level in terms of helping our fixed cost absorption.

如果我們預期它會持續下去，那麼這種情況也會持續到 25 年。因此，總的來說，我想說，未來最重要的參數將是有助於我們吸收固定成本的生產水準。

And Abe, if I would just add to that, I mean, we've talked about this on past calls, and despite the challenges we're facing right now, we continue to invest in our business, right? And part of those investments are projects that help improve our overall cost position.

安倍，如果我補充一點的話，我的意思是，我們在過去的電話中討論過這一點，儘管我們現在面臨挑戰，但我們會繼續投資於我們的業務，對嗎？這些投資的一部分是有助於改善我們整體成本狀況的項目。

And one of the projects in particular that we've talked about. And it's not only -- it's a good ESG story because it's reducing natural gas consumption, but it certainly helps our cost position in Pamplona as well. We will continue to make those sort of investments in our plants and think that this is a little bit of a road map for us to continue to drive costs out of our system.

我們特別討論過的項目之一。這不僅是一個很好的 ESG 故事，因為它減少了天然氣消耗，而且肯定也有助於我們在潘普洛納的成本地位。我們將繼續對我們的工廠進行此類投資，並認為這是我們繼續降低系統成本的路線圖。

Yes, there's a capital cost to it, but those are the things that we have to do to continue to be competitive and also position us for the long term and our views around the long term positioning of the company.

是的，這會產生資本成本，但這些是我們必須做的事情，才能繼續保持競爭力，並為我們的長期定位以及我們對公司長期定位的看法奠定基礎。

Thank you. And then maybe just my last question. You had a competitor maybe last quarter was indicating that they expected the prices of needle coke to increase in the second half of this year. Is that -- I know it's early in the quarter, but is that something you're seeing? Or do you share that view? And kind of a related, like what's the capacity that Seadrift is running at today? That's it for me.

謝謝。也許只是我的最後一個問題。你有一個競爭對手，也許上個季度表示他們預計今年下半年針狀焦的價格會上漲。我知道現在是本季初，但這是您所看到的嗎？或者你也同意這個觀點嗎？與此相關的是，Seadrift 今天的運作容量是多少？對我來說就是這樣。

Yeah. So I think on the broader needle coke market, as I stated before, I think it's relatively flat at this point in time. But again, that is somewhat, I'll call it -- stale data because it's typically about a month old when we see it.

是的。因此，我認為，正如我之前所說，在更廣泛的針狀焦市場上，我認為目前的情況相對平穩。但同樣，我將其稱為“陳舊數據”，因為當我們看到它時，它通常已經是一個月前的數據了。

But I do think we'll start to see maybe as early in the back half of '24. But certainly as we get into '25 that you'll start to see more of a pull on needle coke demand, not only from higher utilization rates because we continue to expect volumes to go up from our perspective.

但我確實認為我們最早可能會在 24 年下半年開始看到這一點。但可以肯定的是，隨著我們進入 25 年，您將開始看到針狀焦需求受到更多拉動，這不僅來自利用率的提高，因為從我們的角度來看，我們繼續預期產量會上升。

But also on the EV side, right, as supply chains start to get organized and more work is being done to align to kind of some of the 2027 kind of key milestones that the OEMs and others have. So again, crystal ball aside, we expect needle coke prices to continue to go up from this point as they've been trading sideways for quarter two now.

但在電動車方面，隨著供應鏈開始組織起來，並且正在做更多的工作，以適應 OEM 和其他廠商在 2027 年實現的一些關鍵里程碑。因此，拋開水晶球不談，我們預計針狀焦價格將繼續上漲，因為它們在第二季一直在橫向交易。

And Seadrift utilization, we're probably running commensurate with where the electrode plants are right, where we're matching Seadrift production with what our demands or internal needs are right now.

至於 Seadrift 的利用，我們的運作可能與電極工廠所在的位置相稱，我們將 Seadrift 的生產與我們現在的需求或內部需求相匹配。

Thank you very much.

非常感謝。

Kirk Ludtke, Imperial Capital.

柯克·路特克，帝都。

Hello Tim, Jeremy, Catherine, Mike, thank you for the call. Appreciate it. With respect to the shift toward EAF. I'm curious, I know it's -- you've got forecast through the end of the decade, but I'm curious, can you quantify how much will come online in the very near term, say second half of this year and 2025?

您好，提姆、傑瑞米、凱瑟琳、麥克，謝謝您的來電。欣賞它。關於向 EAF 的轉變。我很好奇，我知道，您已經對本世紀末的情況進行了預測，但我很好奇，您能否量化近期（例如今年下半年和 2025 年）將有多少上網業務？

Yeah. I mean, I don't have exact numbers year by year. I think we could probably get those to you offline in terms of what we're tracking. But certainly, I think there's a number of projects here domestically in the US that we know are coming online. A few mills I anticipate to ramp up here in strike their first arc in the back half of '24 and would see fairly good production levels in 2025. But we can get that to you offline.

是的。我的意思是，我沒有逐年的確切數字。我認為根據我們正在追蹤的內容，我們可能可以離線向您提供這些內容。但當然，我認為美國國內有許多項目正在上線。我預計有幾家工廠將在 24 年下半年達到第一個成長點，並在 2025 年看到相當好的生產水準。但我們可以離線為您提供。

Okay. And anything in China, you mentioned the shift from 10% to 15%. Are there -- is there anything are happening at the plant level that might suggest that this time it's different?

好的。在中國，你提到了從 10% 到 15% 的轉變。工廠層級是否發生了任何事情可能表明這次情況有所不同？

Yeah. I mean other than the Chinese government saying that this time they're serious and it's going to happen. I think it's too early from that announcement, really to see a change in operating levels and rates. I think we haven't seen a significant uptick in operating rates here over the last month or two, but I think time will tell.

是的。我的意思是，除了中國政府說這次他們是認真的並且這將會發生。我認為從該公告發布來看，真正看到營運水準和費率發生變化還為時過早。我認為過去一兩個月我們沒有看到這裡的開工率顯著上升，但我認為時間會證明一切。

But ultimately, I think if China wants to continue to be a more active engaged in in kind of the world economy, right, the decarbonization efforts need to be real and they need to act upon those. So hopefully, this time around will see better action. So I'll couch it as cautious optimism at this point in time.

但最終，我認為，如果中國想繼續更積極參與世界經濟，那麼脫碳努力就必須是切實可行的，並且需要採取行動。所以希望這次能看到更好的行動。因此，我現在將其表述為謹慎樂觀。

Got it. Thank you. I appreciate it. And then -- and I know you're not providing guidance, but directionally, it seems as though spot pricing sequentially is weaker, you've got the downtime scheduled for the third quarter. It seems as though sequentially earnings will be down between the second and the third quarter and then maybe rebound in the fourth. Is that directionally accurate?

知道了。謝謝。我很感激。然後——我知道你沒有提供指導，但從方向上看，現貨價格似乎連續走弱，你已經安排了第三季的停機時間。似乎第二季和第三季之間的連續獲利將下降，然後可能會在第四季反彈。方向準確嗎？

Yeah. I mean, I think you captured kind of at least what we've said around pricing direction as well as Catherine's discussion around the lumpiness of our costs. So yeah, without providing guidance, I think you're fair.

是的。我的意思是，我認為你至少抓住了我們關於定價方向所說的內容以及凱瑟琳關於我們成本的塊狀性的討論。所以是的，在不提供指導的情況下，我認為你是公平的。

Got it. And with respect to the energy costs, is that just the seasonality of energy or do you have contracts that are rolling off that we should try to think through?

知道了。就能源成本而言，這只是能源的季節性還是我們應該考慮的合約即將到期？

Yeah, I would describe it as seasonality, right? I mean, different markets have different incentives at various times. The summer season is a high energy use season in certain jurisdictions. So it's not unusual to see higher prices as we go into the third quarter.

是的，我會把它描述為季節性，對嗎？我的意思是，不同的市場在不同的時間有不同的誘因。在某些司法管轄區，夏季是能源使用高峰期。因此，進入第三季時價格上漲並不罕見。

Got it. Thank you. And then last question. You have access to all the cash. There's no limitations on you moving cash around to service debt?

知道了。謝謝。然後是最後一個問題。您可以使用所有現金。您轉移現金來償還債務沒有任何限制嗎？

No, that's correct.

不，這是正確的。

Got it. I appreciate. Thank you.

知道了。我很欣賞。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 questions. I hope you guys are well. So I just wanted to understand kind of the path forward here. So it looks like if you remove that gain, maybe $9 million or so you'd be at like a $5 million run rate of EBITDA in this quarter?

偉大的。感謝您回答我的問題。我希望你們一切都好。所以我只是想了解這裡的前進道路。因此，如果去掉該收益，本季的 EBITDA 運行率可能為 900 萬美元左右，約為 500 萬美元？

Do you see kind of a path to maybe the $25 million to $50 million level? And the reason I'm asking is because you are going to be, I guess your volumes could be increasing, which because of lower your production costs, then you do have continued roll-off of the LTAs.

您是否認為有可能達到 2500 萬美元至 5000 萬美元的水平？我問的原因是，我猜你們的產量可能會增加，這是因為你們的生產成本降低了，那麼你們確實會繼續推出長期協議。

So just wondering if we kind of assume kind of a normal [$4,500 or so $4,000] or so on the cash cost per ton level, what kind of volumes can you get to? And what does that really mean for EBITDA? Maybe you can just help us give us some breakpoints on that journey. Thanks.

因此，我想知道如果我們假設每噸現金成本處於正常水平 [4,500 美元左右] 左右，那麼您能達到什麼樣的數量？這對 EBITDA 到底意味著什麼？也許你可以幫助我們在這段旅程中設定一些斷點。謝謝。

Yeah. So again, we don't provide a lot of guidance. And I'm not going to sit here and start speculating about next year. Other than I think we're laying the groundwork with our customers in all the work that we've been doing and we've been saying this ever since Q4 of 2022, that we're confident that we'll continue to claw back our market share. And yeah, maybe we went down in the elevator or climbing back up on the stairs, but we will continue to drive forward and get market share back as we head into 2025.

是的。再說一次，我們沒有提供太多指導。我不會坐在這裡開始猜測明年的情況。Other than I think we're laying the groundwork with our customers in all the work that we've been doing and we've been saying this ever since Q4 of 2022, that we're confident that we'll continue to claw back our市場占有率.是的，也許我們搭電梯下去，或爬上樓梯，但進入 2025 年時，我們將繼續前進並奪回市場份額。

So while we expect modest increases in volume this year. I would think it's fair to continue to expect increases in volume as we head into 2025. And Catherine commented on the cost side where the moral of the story is the cost trend is going in the right direction from '23 to '24. And we expect that to continue from where we sit today heading into '25.

因此，儘管我們預計今年的銷量將略有增加。我認為，進入 2025 年，繼續預計銷售成長是公平的。凱瑟琳對成本方面進行了評論，故事的寓意是成本趨勢從 23 年到 24 年朝著正確的方向發展。我們預計這種情況將從今天開始持續到 25 年。

So a lot of the things that we can control and that we can drive are progressing as we would expect. And as we've been saying they would. The question that remains the uncertainty in the question that I can't answer for you today is what does pricing look at like next year.

因此，我們可以控制和推動的許多事情正在按照我們的預期取得進展。正如我們一直所說的，他們會的。我今天無法為您回答的問題中仍然存在不確定性的問題是明年的定價會是什麼樣子。

And we won't know that until we start engaging more fulsomely with our customers here in the late third quarter and early fourth quarter, as we get into contract negotiations. So hopefully that helps at least give you a little bit of direction is the way we see '25.

直到第三季末和第四季初我們開始與客戶進行更充分的接觸，進入合約談判時，我們才會知道這一點。因此，希望這至少能為您提供一些方向，這就是我們看待 '25 的方式。

And I think that trend just continues because some of the bigger drivers around EAF and steel demand as well as needle coke demand really start to come into play as we get more into '26 and beyond. So hopefully that gives you a little more visibility or at least a sense of how we're viewing kind of the recovery and kind of the growth curve for the business as we look out here over the midterm.

我認為這種趨勢只會持續下去，因為隨著我們進入 26 年及以後，圍繞電弧爐和鋼鐵需求以及針狀焦需求的一些更大的驅動因素真正開始發揮作用。因此，希望這能讓您有更多的了解，或至少了解我們在中期展望時如何看待業務的復甦和成長曲線。

Thanks for that. Maybe I can just ask a follow-up in a slightly different way. So would you say --would you agree that the market has bottomed? I know it has on a -- maybe it has on the volume front. But again, with your LTAs rolling off, I know pricing won't necessarily -- also, it's probably not bottomed per se on an average realization basis. But would you say that prices have bottomed from a overall spot basis?

謝謝你。也許我可以用稍微不同的方式來詢問後續情況。那麼您是否同意市場已經觸底？我知道它有一個——也許它在音量方面。但同樣，隨著長期協議的結束，我知道定價不一定會發生——而且，在平均實現的基礎上，它本身可能還沒有觸底。但您是否認為整體現貨價格已經觸底？

Yeah, Arun much like not speculating on political outcomes. I think I'm going to refrain from calling a bottom that usually doesn't work well for most folks. But I mean, again, I think you're seeing some stability. I would certainly think that now that we are six months to almost six months removed from our announcement of reducing capacity in St. Mary's.

是的，阿倫就像不猜測政治結果。我認為我不會認為底部對大多數人來說通常效果不佳。但我的意思是，我認為你看到了一些穩定性。我當然認為，距離我們宣布減少聖瑪麗醫院的容量已經過去了六個月到近六個月的時間。

Again, I mentioned one of our competitors come out and they've taken action around their production capacity. I stated before I don't think that all of the western producers operating at losses or kind of thin or single digit margins is a sustainable business. And certainly, if we think about how essential we are to the production of steel in EAFs, right, it's not really sustainable for our customers either, right?

我再次提到我們的一個競爭對手出來了，他們已經圍繞著其生產能力採取了行動。我之前說過，我不認為所有虧損或利潤微薄或個位數的西方生產商都是可持續的企業。當然，如果我們考慮一下我們對電弧爐鋼鐵生產的重要性，對吧，這對我們的客戶來說也不是真正可持續的，對吧？

So at some point in time, you have to see some better pricing support across the industry. And again, whether that's through higher demand, more supply rationalization or just better overall demand and economic conditions. We do see three things returning back to more normalized conditions and as we move through into '25 and beyond so.

因此，在某個時間點，你必須看到整個產業有更好的定價支援。再說一次，無論是透過更高的需求、更多的供應合理化還是只是更好的整體需求和經濟狀況。隨著我們進入 25 年及以後，我們確實看到三件事回到了更正常化的狀態。

Okay, thanks. And then just lastly, you spoke last time about some improved commercial actions that you're taking some initiatives to win back some share. And maybe you noted this time laying the groundwork with a lot of customers.

好的，謝謝。最後，您上次談到了一些改進的商業行動，您正在採取一些舉措來贏回一些份額。也許您注意到這次與許多客戶奠定了基礎。

So where are you on that journey? Have you actually gotten any customers back? And do you feel like that's also kind of bottomed and heading higher as far as your kind of share again recovering?

那麼你在這段旅程中在哪裡？你真的挽回客戶了嗎？您是否覺得，隨著您的股票再次復蘇，這也已經觸底並走高？

Yeah. I mean, I would absolutely -- and I don't know how I call it customer bottom, but I would say that we continue myself, Jeremy, Inigo Perez, our Head of Sales continue to engage with our customers on an in-person basis, and we've been doing so throughout this year and we'll continue to do so because I think it's important that we continue to articulate to them not only the value proposition and that we think we offer that we've talked about on this call.

是的。我的意思是，我絕對會- 我不知道如何稱之為客戶底部，但我會說我們會繼續自己，傑里米，我們的銷售主管伊尼戈·佩雷斯繼續與我們的客戶進行面對面的交流我們今年一直在這樣做，而且我們將繼續這樣做，因為我認為重要的是，我們不僅繼續向他們闡明價值主張，而且我們認為我們提供了我們已經討論過的內容這個電話。

But also to make sure that the products that we're delivering to them meet their specification and needs and that we're thinking about ways to help them improve their business and their cost competitiveness. And really, the technical services we provide them all the value add that we think we can provide that is truly a differentiator from our competition.

而且還要確保我們提供給他們的產品滿足他們的規格和需求，並且我們正在考慮幫助他們提高業務和成本競爭力的方法。事實上，我們為他們提供的技術服務是我們認為可以提供的所有增值服務，這確實是我們與競爭對手的區別。

So I think that is paying dividends. And I think most importantly and may be somewhat different than in the past is really articulating to them that these are partnerships. These are long-term relationships and that's what we want. We don't want customers who buy from us one quarter and we don't seem again for a couple of years, right?

所以我認為這正在帶來紅利。我認為最重要的是，可能與過去有所不同，真正向他們表明，這些是夥伴關係。這些是長期的關係，這就是我們想要的。我們不希望客戶一個季度向我們購買產品，而我們幾年後就不再出現了，對嗎？

We want customers that are concerned about our business because we're concerned about their business and that we're willing to invest in those partnerships for the long-term health of both companies. So that is resonating. I think that message is being well received and will continue to see that dividends being paid as we look out into '25 and beyond.

我們希望客戶關心我們的業務，因為我們關心他們的業務，為了兩家公司的長期健康發展，我們願意投資這些合作關係。所以這是引起共鳴的。我認為這一訊息得到了廣泛接受，並且在我們展望 25 年及以後的過程中，我們將繼續看到紅利得到支付。

Thanks a lot.

多謝。

Thanks, Arun.

謝謝，阿倫。

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

我們的問答環節到此結束。現在我將把電話轉交弗拉納根先生以供結束評論。

Thank you, Ace. I'd like to thank everyone on this call for your interest in GrafTech. We look forward to speaking with you again next quarter. Have a great day.

謝謝你，艾斯。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。

Thank you. Ladies and gentlemen, this concludes our conference call. You may now disconnect.

謝謝。女士們先生們，我們的電話會議到此結束。您現在可以斷開連線。