[SMM Analysis] June Imports and Exports of Needle Coke Declined, With Weak Market Performance

In June 2024, China's oil-based needle coke imports were 6,353 mt, down 40% MoM but up 23% YoY; coal-based needle coke imports were 3,931 mt, down 41% MoM and 30% YoY. In June, as the domestic market entered the mid-year rush phase, overall anode production still maintained a certain level, although there was some inventory of mid-to-high-end anodes. This ensured demand for needle coke. Due to the current lower price and better performance of oil-based needle coke, domestic customers mostly chose oil-based needle coke. Although oil-based needle coke imports were lower than last month, they were still higher than the same period last year. It is expected that in July, with the completion of maintenance by some domestic needle coke producers, domestic production will increase, and market activity will cool down, leading to a further decrease in needle coke imports.

Source: SMM, China Customs

In June 2024, China's oil-based needle coke exports were 1,275 mt, down 32% MoM and 62% YoY; coal-based needle coke exports were 54 mt, flat MoM and down 45% YoY. In June, domestic oil-based needle coke producers primarily focused on meeting domestic demand, and overseas mid-to-high-end anode production was much lower than domestic production. Additionally, the downstream graphite electrode market was also sluggish, leading to a further reduction in overseas demand for Chinese needle coke. It is expected that in July, with the overall market cooling down, overseas demand for needle coke will remain low, and needle coke exports will likely stay at a low level.

Source: SMM, China Customs