Continuous Decline in Supply-Demand Mismatch of Anode Material [SMM Weekly Review of Lithium Battery Anode Market]

SMM, June 12:

This week, prices of artificial graphite anode materials have declined by varying degrees. From the perspective of the supply-demand pattern, the NEV market has seen a pullback in procurement demand following the conclusion of the auto show, while the ESS sector has experienced a significant decline in market activity due to the cancellation of the "mandatory energy storage allocation" policy, further exacerbating the supply surplus situation. On the cost side, the downward trend in coke prices, which has persisted for two months, has driven down the production costs of anode materials. The combination of these two factors has pushed anode material prices downward. Looking ahead, the cost side may remain weak due to loose supply and weak demand. On the supply and demand side, despite some companies potentially cutting production to alleviate pressure, the overcapacity situation is unlikely to improve. Therefore, companies may offer discounts to capture market share.

Affected by the dual impact of the earlier decline in raw material prices and weak downstream demand, the prices of natural graphite anode materials have dropped slightly recently. Looking ahead, with the accelerated technological iteration of artificial graphite, the gap in core performance indicators such as capacity per gram and cycle life between artificial graphite and natural graphite continues to narrow. Some customers in the mid-to-high-end lithium battery sector have begun to switch to artificial graphite, gradually diverting the traditional demand for natural graphite. The contradiction between supply and demand in the industry is prominent. Therefore, the prices of natural graphite anode materials are expected to fall slightly in the short term due to supply-demand imbalance, and face sustained downward pressure in the medium and long term due to technological substitution.

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

Hu Xuejie 021-20707858