[SMM Analysis] Graphitisation Tolling Services Prices Remained Stable This Week

SMM, April 30:

This week, graphitisation prices remained stable. On the demand side, affected by uncertainties in international trade and tariff policies, downstream enterprises related to anode materials and lithium batteries adopted a more conservative approach to procurement decisions, with a strong wait-and-see sentiment prevailing in the market. On the supply side, the long-standing pattern of overcapacity persisted. Graphitisation tolling service providers continued to face high electricity expenses, keeping their cost structures elevated and stable. Consequently, some tolling producers remained trapped in an operating dilemma of unbalanced profits and losses. Against the backdrop of no substantive changes in the supply-demand pattern, the high costs provided strong support for graphitisation tolling prices, which remained firm this week.

Looking ahead, on the supply and demand front, as coke prices decline, anode enterprises are expected to halt inventory depletion and actively increase operating rates of production lines, potentially boosting demand for graphitisation tolling services. Amidst this anticipated increase in demand, graphitisation tolling service providers may raise prices to compensate for previous losses. However, from the perspective of the overall supply-demand structure in the industry, it is challenging for the newly added demand in the short term to effectively absorb the excess capacity, and the market imbalance of oversupply will persist. On the cost side, the supply of electricity resources has entered a relatively loose phase, and electricity prices are expected to decrease to a certain extent, which will effectively reduce the production costs of graphitisation tolling service providers. Taking into account both supply-demand and cost factors, despite the growth in demand, graphitisation tolling service providers will find it difficult to achieve significant price increases due to the dual constraints of overcapacity and cost reductions. Meanwhile, downstream anode enterprises, driven by cost control considerations, will also pose resistance to price increases. It is anticipated that subsequent graphitisation tolling prices will exhibit a stable and fluctuating trend amidst multi-party negotiations.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lv Yanlin 021-20707875

Zhou Zhicheng 021-51666711

Zhang Haohan 021-51666752

Wang Zihan 021-51666914

Wang Jie 021-51595902

Xu Yang 021-51666760

Xu Mengqi 021-20707868