【SMM Weekly Review】Despite Rising Costs, Limited Support; Anode Material Prices Remain Under Downward Pressure

March 29th, SMM reports: This week, the prices of anode materials experienced weak performance. In terms of costs, the price of low-sulfur petroleum coke remained stable. With some refineries undergoing maintenance and a rebound in anode material procurement volumes, prices may be adjusted upwards in the future. The price of oil-based needle coke is currently stable. Demand for coke production has increased slightly, and despite the rising prices of raw low-sulfur petroleum coke, the overall cost is still at the margin. Consequently, needle coke manufacturers are still expected to increase prices in the future. The current price for outsourced graphitization services is weak but stable.

In terms of demand, the revival of end-product production has significantly driven the growth of leading anode manufacturers. However, the recovery among the middle and lower-ranked anode manufacturers is relatively limited, resulting in a polarized market trend. Although the theoretical cost of anode has increased compared to the previous period, the rate of increase is minor and provides very limited support for the price of anode. The ongoing pressure from downstream price bargaining and market competition due to overcapacity in the anode industry continues to exert pressure on the prices of anode. Therefore, there are expectations that the price of anode materials may continue to face downward pressure in the future.