SHANGHAI, Aug 2 (SMM) – Prices of prebaked anode, used to produce primary aluminium, are unlikely to see a significant rebound in the second half of this year amid excessive capacity, SMM expects. Prices will continue to follow raw materials costs rangebound in the near future.
Heating-season environmental cuts on carbon mills may only slightly lift prices of prebaked anode after September, as most carbon firms are up to emission standards after previous upgrading of equipment.
Last month, prebaked anode prices failed to hold on to gains from June as slow resumption and build-out of aluminium capacity exacerbated a supply glut. Prices of petroleum coke, a raw material to produce prebaked anode, slid after producers resumed from maintenance, and this also accounted for the lower prices of prebaked anode in July.
The uptick in June's prices was largely driven by a price rally of raw materials, including petroleum coke and asphalt, amid maintenance.
Prices of prebaked anode face downward pressure in August, as more aluminium producers are likely to follow Shandong Weiqiao Group, one of the top aluminium producers in China, to lower their purchasing prices.
Weiqiao cut its benchmark purchasing prices for prebaked anode by 50 yuan/mt for August, after it reduced prices by the same amount for July.
In June, the company raised prices for the first time this year by 100 yuan/mt.