[SMM Analysis] The Market Supply and Demand Situation Is Good; Anode Prices Remained Stable This Week

SMM, December 26:

This week, anode prices remained stable. Cost side, downstream anode demand remained at a high level. Low-sulphur petroleum coke refineries reported good sales, with inventory levels accumulating at a low position. This week, low-sulphur petroleum coke prices remained high. Oil-based green needle coke prices are currently stable but still at a low level. The overall operating rate of the industry remains low, and downstream anode manufacturers have limited demand. With new capacity expected to be released in the future, needle coke manufacturers are likely to adopt a price stabilization strategy in the short term. Graphitisation outsourcing is constrained by high electricity costs during the dry season, making it difficult to sustain price reductions and leading to expectations of price increases. However, current demand for graphitisation outsourcing is sluggish, making it hard to raise quotations. For now, prices remain relatively stable in the short term. Demand side, downstream customers are rushing for installations and stockpiling, resulting in strong demand for anodes. Most downstream enterprises prioritize securing procurement, leading to low price suppression sentiment. With anode prices at a low level and raw material costs remaining high, anode manufacturers showed strong price increase sentiment during a tender by a leading downstream battery cell enterprise. However, as the procurement price of this battery cell enterprise has been consistently below the industry average, the current price increase is more of a correction to previous low prices. Its impact on boosting overall industry procurement prices is expected to be relatively limited. Artificial graphite anode prices are expected to remain stable in the future.

SMM New Energy Research Team

Cong Wang 021-51666838

Xiaodan Yu 021-20707870

Rui Ma 021-51595780

Ying Xu 021-51666707

Disheng Feng 021-51666714

Yujun Liu 021-20707895

Yanlin Lü 021-20707875

Ye Yuan 021-51595792

Chensi Lin 021-51666836

Zhicheng Zhou 021-51666711

Haohan Zhang 021-51666752

Zihan Wang 021-51666914

Xiaoxuan Ren 021-20707866

Yushuo Liang 021-20707892

Jie Wang 021-51595902

Yang Xu 021-51666760