Rising Costs Boosted the Prices of Anode with an Increase of 20%

SHANGHAI, May 11 (SMM) -

According to SMM research, the prices of mid-end artificial graphite stood at 65,000-68,000 yuan/mt, while low-end artificial graphite stood at 43,000-48,000 yuan/mt, with the highest price increase of 20% from the beginning of the year. With the target of carbon peaking and carbon neutrality, there was not only rapid development in new energy vehicles market, but also in energy storage, consumption and E-bike battery, boosted the sales and production of power lithium battery. Driving by the improving climate index, the demand for anode material has increased amid tight supply.

From the material side, the demand for coke increased sharply benefiting from the rapid expansion of downstream anode material capacity. Coupled with the impact of price fluctuations of international crude oil and supply shortage, prices of low-sulphur petroleum coke rose for several times in 2022. According to SMM research, the prices of low-sulphur petroleum coke increased to 8,500 yuan/mt, oil-based needle raw coke at 10,000 yuan/mt, coal-based needle raw coke at 9,500 yuan/mt. Prices of coke are expected to grow driving up by the downstream demand.

In terms of graphitisation, the graphitisation capacity in 2021 was mainly affected by the electricity restriction and national dual control of energy consumption with tight supply. Affected by the Winter Olympic Games and the Two Sessions, the graphitisation capacity in northern area was restricted at the beginning of this year. In March, a new round of pandemic recurred, influencing the graphitisation plants in some areas with restricted capacity. According to SMM research, the the processing costs of graphitisation stood at 28,000-29,000 yuan/mt, while the processing costs of some manufacturers were above 30,000 yuan/mt. It is expected that the graphitisation supply will remain tight in the short term with processing costs hovering at a high level.

According to SMM, the cost of anode material has been rising since the beginning of 2022, and the gross margin of anode material reduced, with mainstream manufacturers bearing the cost pressure themselves. Some small plants were under cost pressure, with price increases ranging from 3,000 yuan/mt to 5,000 yuan/mt. In the second quarter of this year, a new round of price negotiations was started by the mainstream anode material manufacturers, and the rising costs of the first quarter were reflected.