Graphitisation Tolling Services Prices Tick Up Slightly, Supply-Demand Mismatch Underpins Firm Market Outlook [SMM Lithium Battery Anode Raw Materials Market Weekly Review]

SMM Aug 27:

This week, China's graphitisation tolling price center edged up slightly. Demand side, some integrated enterprises' own graphitisation capacity remained tight, anode producers' outsourced tolling demand continued to be released, providing positive support for the tolling market; supply side, due to prolonged profit pressures in the earlier period, some independent graphitisation enterprises have not yet fully returned to normal production, the overall industry operating rate improved slowly, effective processing capacity maintained a relatively tight balance, and the phased supply-demand mismatch provided the basic conditions for this price increase. However, upstream raw material costs have not yet rebounded to previous highs, the follow-through from the cost side was limited, which to some extent restrained the upward elasticity of tolling prices. Looking ahead, as the production scheduling pace of downstream anode users continues to accelerate, the adjustable surplus in the tolling market is expected to gradually narrow, and downstream clients' sentiment to push for lower prices to ensure their own capacity runs normally will gradually fade. The view that graphitisation tolling prices will remain stable with a strengthening bias remains unchanged.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lyu Yanlin 021-20707875

Zhang Haohan021-51666752

Wang Zihan021-51666914

Wang Jie021-51595902

Chen Bolin021-51666836

Xu Yang021-51666760

Xu Mengqi021-20707868

Hu Xuejie021-20707858

Yang Le021-51595898

Wang Zhaoyu021-51666827

Li Yisha021-51666730

Huang Chencong021-51595860

Lin Ziya021-5166-6902