Weak demand to extend declines in prices of prebaked anode in Apr-Shanghai Metals Market

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Weak demand to extend declines in prices of prebaked anode in Apr

SMM Insight 11:56:12AM Mar 25, 2019 Source:SMM

SHANGHAI, Mar 25 (SMM) – Prices of prebaked anode for commercial use across the Chinese markets are likely to continue to fall in April as demand remains weak.

With sufficient inventories, most aluminium producers purchased prebaked anode cautiously. SMM learned that prebaked anode stocks at a large aluminium producer currently stand at over 30 days.

Meanwhile, carbon producers struggled to lower their inventories of prebaked anode. SMM learned that some carbon producers lowered offers below market prices to attract aluminium producers to buy their cargoes.

Environmental probes continued to be strict after the two sessions. This forced some carbon producers in Shandong and Henan to cut production as they failed to meet emission standards, impacting their output in March.

Some carbon producers slashed production to control costs. Those production cuts, however, are not strong enough to buoy prices of prebaked anode in April.

Prices of prebaked anode failed to find support from the cost front in March, given weakness in prices of petroleum coke and coal tar pitch.

The petroleum coke market will enter a traditional high season in May, which is likely to bolster prices of petroleum coke, giving some support to prices of prebaked anode for commercial use.

Weak demand to extend declines in prices of prebaked anode in Apr

SMM Insight 11:56:12AM Mar 25, 2019 Source:SMM

SHANGHAI, Mar 25 (SMM) – Prices of prebaked anode for commercial use across the Chinese markets are likely to continue to fall in April as demand remains weak.

With sufficient inventories, most aluminium producers purchased prebaked anode cautiously. SMM learned that prebaked anode stocks at a large aluminium producer currently stand at over 30 days.

Meanwhile, carbon producers struggled to lower their inventories of prebaked anode. SMM learned that some carbon producers lowered offers below market prices to attract aluminium producers to buy their cargoes.

Environmental probes continued to be strict after the two sessions. This forced some carbon producers in Shandong and Henan to cut production as they failed to meet emission standards, impacting their output in March.

Some carbon producers slashed production to control costs. Those production cuts, however, are not strong enough to buoy prices of prebaked anode in April.

Prices of prebaked anode failed to find support from the cost front in March, given weakness in prices of petroleum coke and coal tar pitch.

The petroleum coke market will enter a traditional high season in May, which is likely to bolster prices of petroleum coke, giving some support to prices of prebaked anode for commercial use.