[SMM Analysis] Market Boom Continues, Anode Production Rises in October

SMM, Nov 14: In October 2024, China's anode materials production increased 6% MoM and was up 23% YoY.

Demand side, NEV market, in October, the overall market heat was high. With the decline of new energy subsidies, downstream had a strong desire to boost sales, leading to high demand for power battery cells and anode materials. Energy storage sector, in October, with the year-end grid connection period approaching and the advancement of overseas energy storage projects, both domestic and international downstream demand was robust, boosting anode procurement. Consumption side, in October, multiple new models were expected to be launched, and with year-end promotions approaching, many companies were stocking up, leading to increased demand for anodes.

In November, downstream rush installation sentiment remains strong, and demand is still robust. Therefore, overall production remains high, but some anode companies, out of caution, may reduce production slightly. It is expected that in November, China's anode materials production will decrease 1% MoM and increase 28% YoY.