Petroleum Coke and Coal Tar Pitch Prices Surge, Prebaked Anode Costs Soar, Profitability Faces Challenges [SMM Prebaked Anode Weekly Review]

Published: Feb 6, 2025 16:35

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[SMM Weekly Review on Prebaked Anode: Petroleum Coke and Coal Tar Pitch Prices Surge, Costs Skyrocket, Profitability Faces Challenges] Recently, due to the rising prices of raw materials such as petroleum coke and coal tar pitch, the production costs of prebaked anodes have been continuously increasing. According to SMM data, as of February 6, the cost of prebaked anodes in China was around 4,780 yuan per mt, up 3.77% compared to the Thursday before the holiday. Post-holiday, the price of petroleum coke is expected to continue rising due to tight supply and strong demand. Although the price of prebaked anodes is expected to increase this month, it is unlikely to offset the pressure from rising raw material costs. The production pressure on enterprises is gradually intensifying, and profitability remains under significant strain. Moving forward, attention should be paid to the production and operations of prebaked anodes and downstream aluminum enterprises.

SMM, February 6:
Raw Material Side: In the petroleum coke market, supported by tight domestic refinery supply and post-holiday restocking by downstream enterprises, petroleum coke prices continued their upward trend. Specifically, CNOOC's refineries held centralized bidding for petroleum coke today, and petroleum coke prices are expected to see a significant increase. As of press time, SMM learned that Zhoushan Petrochemical's bidding price this week was 5,500 yuan/mt, up 1,800 yuan/mt from the previous bidding. PetroChina's refineries in north-east China, with low inventory levels, reported good sales. After multiple adjustments, petroleum coke prices saw a significant increase, with current quotes ranging from 4,150 to 4,800 yuan/mt. For Sinopec, refinery sales were good during the week, and petroleum coke prices remained largely stable. Additionally, local refineries also reported good sales, with petroleum coke prices continuing to rise. Currently, the average price of petroleum coke from local refineries has reached approximately 2,290 yuan/mt, an 8.7% increase compared to the Thursday before the holiday. Recently, domestic petroleum coke supply has remained tight, with limited capacity for imported coke to supplement the market. In the short term, the tight market situation is unlikely to ease. Driven by active stockpiling and restocking by downstream enterprises, the petroleum coke market is expected to continue its upward trend.

In the coal tar pitch market, coal tar pitch prices showed slight strengthening. As of Thursday, SMM data indicated that the average price of coal tar pitch was 3,808 yuan/mt, up 0.79% compared to the Thursday before the holiday. Overall, the cost-side support for prebaked anodes continues to strengthen.

Supply Side: Prebaked anode enterprises have been producing throughout the year based on orders. According to SMM, most prebaked anode enterprises maintained stable production during the week. However, some enterprises faced production restrictions due to environmental protection policies, while others experienced production declines due to equipment maintenance and other factors. Despite this, the overall supply of prebaked anodes remains relatively sufficient.

Demand Side: Domestic aluminum operating capacity remained largely stable, and the demand for prebaked anodes in the domestic market remained relatively steady.

Brief Analysis: Recently, due to the rising prices of raw materials such as petroleum coke and coal tar pitch, the production costs of prebaked anodes have been continuously increasing. SMM data shows that as of February 6, the cost of prebaked anodes in China was around 4,780 yuan/mt, up 3.77% compared to the Thursday before the holiday. Post-holiday, petroleum coke prices are expected to continue rising due to tight supply and strong demand. Although prebaked anode prices are expected to increase this month, they are unlikely to offset the pressure brought by rising raw material costs. Enterprises are facing increasing production pressure, and profitability remains challenging. Moving forward, attention should be paid to the production and operation conditions of prebaked anode and downstream aluminum enterprises.

》Click to View the SMM Aluminum Industry Chain Database

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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