SMM May 15 News:
This week, graphitisation prices remained relatively stagnant. From the perspective of supply and demand, as the price of coke declined, the operating rate of anode enterprises increased, leading to a rise in orders for graphitisation tolling services. However, the new demand still struggled to absorb the overcapacity. Meanwhile, the production costs of graphitisation tolling service providers decreased due to lower electricity tariffs. Overall, despite the mild rebound in demand, the weakening cost support and the impact of overcapacity resulted in a lack of upward momentum for graphitisation tolling prices this week, which remained stable overall.
Looking ahead, on the demand side, during the 90-day waiting period for tariff policies, overseas end-users and battery cell enterprises, driven by cost considerations, may initiate an installation rush and stockpiling mode, prompting anode enterprises to increase their production schedules. On the supply side, benefiting from the favorable condition of lower electricity costs, graphitisation tolling service providers may leverage economies of scale to increase their operating rates. Costs may be further controlled due to economies of scale, and anode enterprises may develop a sentiment to drive down prices due to the reduction in graphitisation tolling costs. However, considering that graphitisation producers have long been under high cost pressure, with some already on the verge of profit-loss imbalance, this sets an implicit floor for price declines. Therefore, it is expected that graphitisation tolling prices will remain in a state of volatility and stalemate in the subsequent period.
SMM New Energy Research Team
Wang Cong 021-51666838
Ma Rui 021-51595780
Feng Disheng 021-51666714
Lv Yanlin 021-20707875
Zhou Zhicheng 021-51666711
Zhang Haohan 021-51666752
Wang Zihan 021-51666914
Wang Jie 021-51595902
Xu Yang 021-51666760
Xu Mengqi 021-20707868
