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

SMM, January 9:

This week, anode prices remained stable. Cost side, downstream anode market demand remains strong. Low-sulphur petroleum coke refineries experienced smooth sales, with inventory at low levels. This week, low-sulphur petroleum coke prices remained high and stable. However, oil-based green needle coke faced limited demand from downstream anode manufacturers, resulting in a low overall industry operating rate. In the short term, needle coke manufacturers are expected to primarily adopt a price stabilization strategy. Graphitisation outsourcing is constrained by high electricity costs during the dry season, making it difficult to sustain price reductions and generating expectations of price increases. However, current weak demand makes it challenging to raise quotes, leading to relatively stagnant prices. Demand side, current downstream customer demand for anodes is strong, with low sentiment to press prices. Anode manufacturers reported favorable sales performance. Against the backdrop of extremely limited profit margins and the approaching Chinese New Year, which is expected to slightly reduce demand, anode manufacturers exhibit strong sentiment to stand firm on quotes. Artificial graphite anode prices are expected to remain stable in the short term.

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

Mengqi Xu 021-20707868