[SMM Analysis] Downstream Demand Increased, Anode Raw Material Coke Prices Fluctuated Rangebound This Week

SMM April 3 News:

This week, the average price of low-sulphur petroleum coke was 4,550 yuan/mt, up 0.5% WoW. Demand side, as market demand recovers, the purchasing enthusiasm of downstream anode and cathode for low-sulphur petroleum coke has increased, which directly pushed the price of low-sulphur petroleum coke to a slight increase. Supply side, currently, several low-sulphur petroleum coke refineries are under maintenance, and supply is tight. Cost side, the adjustment of tax policy will have a long-term impact on the operation of low-sulphur petroleum coke refineries, so the price reduction this time is relatively small, not reaching the previous increase. Looking ahead, as anode enterprises gradually consume the previous petroleum coke inventory to a low level, downstream demand will show an upward trend. However, some refineries will still be under maintenance, and the tight supply situation will be difficult to change in the short term. But with the arrival of imported coke, it may supplement domestic supply. Therefore, it is expected that the price of low-sulphur petroleum coke may hover at highs next week.

This week, the average price of oil-based green needle coke was 6,500 yuan/mt, down 0.8% WoW. Supply and demand side, as the market gradually recovers, downstream purchasing enthusiasm has increased, and at the same time, the operating rate of needle coke enterprises has also increased, and supply is relatively sufficient. Cost side, there was no significant cost change WoW, and the profits of needle coke enterprises are still relatively thin, with a strong sentiment to stand firm on quotes. Therefore, under this background, the price of needle coke fluctuated slightly this week. Looking ahead, there will still be new capacity for needle coke, and supply may still be sufficient. It is expected that the price of oil-based green needle coke may decline in the future.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yanlin Lyu 021-20707875

Zhicheng Zhou 021-51666711

Haohan Zhang 021-51666752

Zihan Wang 021-51666914

Jie Wang 021-51595902

Yang Xu 021-51666760

Mengqi Xu 021-20707868