Artificial graphite stops falling and stabilizes; subsequent demand for natural graphite may be squeezed [SMM Weekly Review of Lithium Battery Anode Market]

SMM reported on July 3:

This week, the prices of artificial graphite anode materials stopped falling and stabilized. On the demand side, the slowdown in automakers' production pace led to sluggish growth in demand for power battery cells, while the small energy storage market saw a slight recovery, which to some extent offset the demand gap in the NEV market. This change was transmitted upstream in the industry chain, maintaining relatively stable demand for anode materials from the battery cell side. On the supply side, the ample supply situation continued. On the cost side, as anode material producers and traditional industries restocked, the cost of anode raw materials stopped falling and rebounded, providing support for the prices of artificial graphite. Under the interplay of multiple factors, the prices of artificial graphite anode materials entered a stalemate this week. Looking ahead, although the overcapacity situation is difficult to reverse in the short term, the prices of relevant raw materials are expected to stabilize, which may gradually lead the prices of anode materials to enter a stable operation phase.

This week, supported by the stable situation of both supply and demand and costs, the prices of natural graphite anode materials remained stable. Looking ahead, with the acceleration of technological innovation in artificial graphite anodes and the gradual expansion of production capacity by vapor deposition silicon-carbon producers, downstream customers, driven by the dual demands of cost reduction and efficiency improvement as well as performance upgrades, are gradually shifting their procurement preferences towards alternative materials. This trend directly squeezes the market demand space for natural graphite anodes. Based on a comprehensive analysis of supply and demand as well as technological iteration factors, it is expected that the prices of natural graphite anode materials will continue to face downward pressure.

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