Under the game of supply and demand and cost, graphitisation prices slightly declined this week [SMM Lithium Battery Graphite Market Weekly Review]

SMM, May 22:

This week, graphitisation prices have seen a slight decline. From the perspective of supply and demand, the operating rate of anode enterprises has increased, driving up the orders for graphitisation tolling services. However, the scale of new demand is limited, making it difficult to effectively alleviate the imbalance of overcapacity in the industry. Meanwhile, the production costs of graphitisation tolling services have decreased due to lower electricity tariffs. Against the backdrop of falling costs, anode enterprises have developed a sentiment to drive down prices. Under the combined influence of multiple factors, graphitisation tolling prices have seen a slight decline this week. It is worth noting that as graphitisation tolling prices are close to the cost line, even if there is downward pressure on prices in the market, the decline in graphitisation tolling prices will be relatively limited.

Looking ahead, during the 90-day waiting period for tariff policies, overseas terminal and battery cell enterprises may engage in an installation rush, thereby prompting domestic anode material enterprises to increase their production schedules. On the supply side, the situation of overcapacity is difficult to reverse. On the cost side, costs may be further controlled due to economies of scale and lower electricity tariffs. Therefore, it is expected that graphitisation tolling prices may continue to be under pressure and decline in the future.

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