SHANGHAI, Dec. 9 (SMM) -- Domestic mainstream prebaked anode prices began to fall recently due to lower petroleum coke prices, with prices down by nearly RMB 200/mt.
According to a recent SMM survey, prices for petroleum coke, a major raw material for prebaked anode, have fallen continuously since mid-November, and prices for medium-, low- and high-sulfur petroleum coke were also down by RMB 100-200/mt. Operating rates at domestic major refineries improved, and import volumes of petroleum coke increased continuously, both resulting in market supply surplus. As a result, market prices for petroleum coke fell significantly.
In response, domestic carbon plants also cut ex-works prices for prebaked anode by RMB 100-200/mt in November.
One carbon plant in Shandong cut ex-works prices for prebaked anode by nearly RMB 200/mt, to RMB 3,600/mt (including tax), due to lower raw material prices, higher electricity prices and lower purchase prices offered by aluminum producers amid weak aluminum prices. One carbon plant in Henan also cut ex-works prices for prebaked anode to RMB 3,580/mt (including tax).
SMM believes the price adjustment will have little impact on orders at prebaked anode producers since their production is always stable. In addition, there will be more producers cutting ex-works prices for prebaked anode in the near term.