Anode Prices Extend Weakness post CNY Holiday

SHANGHAI, Feb 3 (SMM) - Prices of anode materials kept falling in the first trading week post Chinese New Year (CNY) holiday. 

On the raw material side, the prices of low-sulphur coke rose slightly and then gradually stabilised, while that of needle coke was generally stable. Currently, the upstream and downstream players were in a tight tug-of-war. In terms of graphitisation, manufacturers have resumed the production one after another after the holiday. Considering the graphitisation cycle, some anode material factories partly resumed the outsourcing of graphitisation. However, as the graphitisation capacity is excessive, the prices have remained on the downward trend, hence some manufacturers are about to lose money. 

Looking ahead, the anode material market is expected to pick up in the second quarter. But the excessive capacity and low cost will keep anode material prices on the downward track in the near term.