Prices of Anode Materials Dipped Slightly in April

SHANGHAI, May 22 (SMM) - China’s anode material output stood at 105,141 mt in April, up 5% MoM and 4% YoY. In early April, new orders placed by the downstream sectors were slack, but some downstream companies, especially the energy storage enterprises, made a few purchases in late April when lithium salt prices dropped. Besides, the wild fluctuation in anode material prices forced the downstream companies to purchase more frequently on a weekly basis, and the anode material manufacturers thus had to build up their finished product stocks to meet the unpredictable downstream demand.

In May, the prices of lithium salt have rallied, and new orders for anode materials have grown on expanding downstream demand. China’s anode material output will be 110,544 mt in May, up 5% MoM and 1% YoY.

In April, the prices of anode materials dipped slightly. In terms of cost, in the first half of the month, the low-sulphur petroleum coke prices fell slightly as the demand did not grow significantly, but then rebounded in the second half of the month when the improving demand dragged down the petroleum coke stocks at producers. Needle coke prices edged lower in April because the anode material companies mainly restocked needle coke on rigid demand and offered lower purchase prices. The decline in graphitisation margins slowed down significantly during the month. In terms of demand, although some downstream projects contributed to some graphitisation orders, the anode material prices still dropped amid the abundant supply, shrinking costs and unregulated competition in the market.