Anode material prices extend declines, overcapacity is evident

The week ending October 26, prices for anode materials continued to drop slightly. Low-sulphur petroleum coke prices held steady, while oil-based needle coke maintained a low price due to cost factors and steady downstream demand. Increased integration in downstream anode factories and weak demand could put graphitisation processing fees at downside risk. Due to increased production by some manufacturers, overcapacity was evident. The downstream EV and energy storage markets showed no signs of robust demand recovery. This intense market competition, coupled with a focus on de-stocking, suggests a likely drop in anode output.