[SMM Analysis] Raw Material Costs Continue to Rise, Anode Prices Remain Stubborn

SMM, January 23:

This week, anode prices remained stable. Cost side, as anode material producers were still in the stockpiling stage and the previous inventory of low-sulphur petroleum coke was relatively low, the price of low-sulphur petroleum coke continued to rise this week. In contrast, the demand for oil-based needle coke from anode producers was relatively low, and the operating rate of needle coke producers remained at a low level. Under this weak supply and demand situation, needle coke prices remained stable this week. Graphitisation electricity costs were still high, coupled with integrated development, leading to sluggish outsourced graphitisation demand. The overall market remained in oversupply, and graphitisation prices stayed stable this week. Demand side, as the Chinese New Year approached, downstream demand slightly recovered. With the holiday nearing, in the context of declining market demand and still high production costs, anode producers showed a strong sentiment to stand firm on quotes. It is expected that anode material prices will remain stable in the near 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