【SMM Analysis: Review of Anode Industry Chain Market During 2024 Spring Festival Holiday and Outlook After the Holiday】

Published: Feb 22, 2024 19:10
Source: SMM
SMM News on February 22: During the Spring Festival holiday, many downstream battery companies had holiday arrangements and the demand for anodes was weak with less procurement. In addition, factors like logistics suspensions affected the market, and there was very limited trading of anode materials during the holiday...

Anode Material:

During the Chinese New Year holiday, many downstream battery companies had holiday arrangements and the demand for anode materials was weak with less procurement. In addition, factors like logistics suspensions affected the market, and there was very limited trading of anode materials during the holiday. The operating rates of anode companies were generally low, mainly for maintaining basic production. Prices were weak and stable.

After the holiday, downstream production has gradually recovered, but inventory pressure still exists. The increase in orders is still to be observed. Orders from anode material companies are still quite limited. Therefore, most anode companies remain conservative, mainly observing market conditions. By the end of February, the overall atmosphere of the anode industry remains relatively cold. It is expected that in March, with the warming up of downstream markets, the production and operating rates of anodes will pick up. At the same time, some capacity that already meets the production conditions may be released in March. The degree of market competition will become more intense again, and there are still risks of price drops for anode materials.

Petroleum Coke:

During the Spring Festival, petroleum coke prices remained stable, and the rising trend before the festival stalled. Since most stockpiling before the holiday has been completed, and the demand from downstream negative electrodes is sluggish with lower prices of graphite electrodes, the current sales volume can hardly support the rise of petroleum coke prices. The trading prices of products from some refineries have fallen back. Meanwhile, as some refineries start maintenance, supply decreases and the decline in prices is also contained. It is expected that petroleum coke prices will fluctuate narrowly afterwards.

Needle Coke:

During the Spring Festival, the needle coke market weakened further, affected by logistics suspensions, decreased downstream demand, continuously rising crude oil prices and other factors. The trading volume of needle coke calcined coke decreased and costs increased, resulting in extremely low profits for most companies’ calcined coke products. The market performed poorly. Currently, needle coke companies mainly ensure calcined coke orders from some quality customers, while focusing operations on needle coke graphitization or switching to produce petroleum coke. As the cost of raw oil slurry supports calcined coke prices, it is expected that needle coke calcined coke prices will remain stable at low levels, or decrease slightly afterwards, and the production volume will decline significantly.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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