Downstream demand slightly increased in June, and the production cost of anode materials continued to decline [SMM Weekly Review of Lithium Battery Anode Market]

In June, the low-sulphur petroleum coke market showed a downward trend, with the average price dropping to 3,558 yuan/mt, down 5.6% MoM. From the perspective of the market supply-demand pattern, although the cost side rose due to international geopolitical factors, the increase was relatively limited; the demand side was weak, with downstream enterprises mainly engaging in rigid procurement and insufficient purchasing strength; while the supply side remained continuously abundant. Under the combined effects of limited cost support and an unchanged oversupply pattern, the price of low-sulphur petroleum coke continued to decline. Looking ahead to July, the low-sulphur petroleum coke market is expected to see a turnaround. As anode enterprises gradually expand their profit margins, their production enthusiasm will increase, thereby driving up the demand for low-sulphur petroleum coke. Meanwhile, some petroleum coke producers will enter the maintenance period, and the supply side may show a contraction trend. The positive changes on both the supply and demand sides are expected to drive a slight increase in the price of low-sulphur petroleum coke in July.

In June, the price of oil-based green needle coke also declined under pressure, with an average price of 5,498 yuan/mt, down 5.7% MoM. Despite a slight increase in raw material costs due to geopolitical factors, the end-use market demand remained sluggish, and the supply side remained abundant, leading to a continuous decline in the price of oil-based green needle coke. For the oil-based green needle coke market in July, it is expected to still face certain downward pressure. On the one hand, July is a traditional off-season for sales, and it is difficult to significantly boost end-use demand; on the other hand, although some needle coke producers will enter the shutdown and maintenance phase, the overall supply can still fully meet downstream demand. Based on a comprehensive assessment, the price of oil-based green needle coke in July may experience a slight decline.