[SMM Analysis] July Supply and Demand Both Strong, Costs Firm, Artificial Graphite Prices Await Upward Window

In July, the anode material market showed strong performance, characterized by robust supply and demand alongside solidifying costs. Supply-demand side, steady growth in both power battery and energy storage sectors boosted stockpiling activity at battery cell manufacturers. Anode enterprises enjoyed abundant orders, increased production schedules, and smooth shipment flows. However, the pace of supply release was relatively slow, with actual production still unable to fully cover new orders. Industry inventory continued to be drawn down, and spot supply of certain commonly used specifications tightened. Meanwhile, cost support strengthened simultaneously. Driven by improving market expectations, raw material prices and graphitisation processing fees were more likely to rise than fall, lifting the cost center and providing solid bottom support for prices. Taken together, under the dual effects of steady demand growth and stronger cost support, anode enterprises’ sentiment for price hikes rose this month. However, constrained by production and delivery lags, the market overall maintained a pattern of stable prices while awaiting increases.

Looking ahead, with the traditional downstream peak season approaching, demand is expected to see further release. Combined with firm cost support, the supply-demand imbalance may intensify, giving anode material prices clear upside room and bringing the window for price increases closer.