[SMM Analysis] End-user demand continues to grow, anode production in May continues to increase

In May 2024, China's anode materials production was 164,000 mt, up 4% WoW and 27% YoY. From the demand perspective, in May, after the release of the "Implementation Details of the Car Trade-in Subsidy," car companies and dealers introduced various discount policies, boosting consumer enthusiasm for car purchases. Sales of new energy vehicles further increased, driving demand for motive power battery cells and anode materials. In the energy storage sector, the installed capacity of energy storage batteries in May still increased compared to April. Battery cell manufacturers increased their demand for anodes, and the iteration of large-capacity energy storage battery cells further drove energy storage companies to test and purchase anode materials. In the consumption sector, with the 618 (June 18) shopping festival approaching, many end-user companies engaged in pre-holiday stockpiling, leading to an increase in demand for battery cells and anode materials.

In June, considering that battery cell companies had stocked up inventories and that market enthusiasm is expected to decline in July, battery cell companies may engage in inventory reduction, leading to a decrease in demand for anode materials. It is expected that the production of anodes will decline. In June, China's anode materials production is expected to be 161,110 mt, down 2% WoW but up 13% YoY.