Artificial Graphite Supply-Demand Is Tight and Prices Are Firm, While Natural Graphite Is Mired in a Stalemate of Weak Demand [SMM Lithium Battery Anode Raw Material Market Weekly Review]

SMM, June 25 —

This week, artificial graphite anode material prices remained stable. Cost side, the anode cost burden had been gradually absorbed earlier, but profitability of each producer remained at a low level. Supply-demand side, downstream market demand was steadily rising. First- and second-tier anode producers, relying on their own integrated capacity, were unable to fully take on existing orders, resulting in a significant gap in finished goods supply. Therefore, against the backdrop of narrow profit margins and tight spot supply, artificial graphite anode material prices ran steady. End-use demand for natural graphite anode material remained sluggish, and downstream purchasers' willingness to push for lower prices when purchasing remained prominent. However, at present, profits in natural graphite production have been squeezed to a critical bottom line, and producers are unable to continue cutting prices to secure orders. Industry-wide production cuts and temporary shutdowns occur frequently, with currently no room for wild swings in product prices.

Outlook: The tight supply-demand pattern in the artificial graphite sector is expected to intensify further, with the market trend having the supporting conditions for a steady rise. Natural graphite, constrained by persistent weak end-use demand, sees market transaction prices hovering close to production costs. In the short term, the market trend may continue to show a sideways stalemate pattern.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lü Yanlin 021-20707875

Zhou Zhicheng 021-51666711

Zhang Haohan 021-51666752

Wang Zihan 021-51666914

Wang Jie 021-51595902

Xu Yang 021-51666760

Xu Mengqi 021-20707868

Hu Xuejie 021-20707858