SMM weekly review and forecast for anode materials

The prices of anode materials have experienced a slight decline recently. Raw Material: the price of low-sulphur petroleum coke has remained stable overall; the supply of needle coke has gradually increased with the capacity expansions of some manufacturers, resulting in relatively sufficient market supply. However, downstream pressure on anode material prices continued due to the excess supply. Needle coke prices have remained stable recently due to the increase in raw material costs. Graphitization: although the main production areas have been affected by power restrictions, the impact on actual supply is expected to be minimal due to the early stockpiling by some anode manufacturers and the overall sufficient graphitization capacity. Graphitization prices are temporarily stable. Overall, recent changes in anode material costs have been relatively minor. While downstream demand is gradually recovering, it is challenging to absorb the existing capacity. However, with the gradual launch of new projects in Q3, excess market supply capacity may become more severe, putting downward pressure on anode material prices.