[SMM Analysis] Anode Material Prices Remained Stable This Week

SMM, April 30:

This week, the artificial graphite market continued to operate steadily. On the supply and demand side, market demand lacked growth momentum. The growth rate of production schedules at downstream battery cell manufacturers fell short of expectations, and the operating rates of anode producers also remained generally stable, with the pace of enterprise shipments keeping pace with market demand. On the cost side, the price of graphitisation tolling services remained stable amid the tug-of-war between supply and demand and costs. The price of raw material coke declined due to the sluggish enthusiasm for purchases by anode and cathode producers. Despite the overall decline in raw material costs this week, the production cost of anode materials decreased. However, as most of the artificial graphite anode materials currently being sold were produced from raw materials purchased at high prices earlier, the price of artificial graphite remained firm, supported by costs. Looking ahead, on the cost side, the downward trend in raw material coke prices is expected to continue. Coupled with the post-holiday reduction in electricity tariffs, both integrated and outsourced costs are expected to decrease. Additionally, as the inventory of high-priced raw materials at anode producers is gradually depleted, the overall production cost of artificial graphite will continue to decline. On the demand side, facing uncertainties such as tariffs, significant growth in demand is unlikely, and both upstream and downstream enterprises are maintaining a wait-and-see attitude. On the supply side, as coke prices decline, the operating rates of artificial graphite producers are expected to increase, and the supply of artificial graphite may remain relatively abundant. Therefore, it is anticipated that the price of artificial graphite may decrease under the dual influence of supply surplus pressure and cost reductions.

This week, the price of natural graphite anode materials remained stable. On the cost side, the prices of core raw materials such as upstream flake graphite and spherical graphite remained stable this week, with no significant changes. Additionally, the costs of graphitisation processing, auxiliary materials, and other links also remained relatively stable, without causing disturbances to the price of natural graphite anode materials. On the demand side, there were no significant changes in the purchasing pace of downstream enterprises, and the scale of purchases remained stable. On the supply side, there were also no significant fluctuations in enterprise shipments, and the overall market maintained a relatively stable operational rhythm. Faced with a stable pattern on both the supply and demand sides and the cost side, the trading activity in the natural graphite market remained at conventional levels, with prices lacking significant momentum for fluctuations. Looking ahead at the market, on the supply side, the supply of natural graphite in the market remains abundant. On the demand side, affected by uncertainties such as tariff policies, the increase in downstream demand may fall short of expectations. Given the expected weakening of demand and the relatively stable supply, it is anticipated that the price of natural graphite anode materials will face a certain degree of downward pressure.

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

Hu Xuejie 021-20707858