China prebaked anode output stood at 1.87 million mt in June

SHANGHAI, Jul 22 (SMM) - SMM data showed that China’s prebaked anode output totalled 1.87 million mt in June, down 0.66% month-on-month, but up 7.56% year-on-year. The average operating rate remained above 75%, standing at 76%. The month-on-month decline was due to a shorter month and output cuts by some producers in Shandong, Henan and Jiangsu under environmental protection restrictions or bad weather. 
The benchmark prices of prebaked anode dropped by 280 yuan/mt MoM in June. The prices of prebaked anode are usually determined by its costs, while its output primarily depends on downstream demand. 
In terms of costs, the current petroleum coke market is volatile and relatively weak. 
On the supply side, the average operating rate remains above 75%. Most producers are running at full capacity, except for some producers who have put their equipment under maintenance or have switched to more lucrative products. 
From the perspective of demand, aluminium smelters are resuming their capacity as planned, and the domestic aluminium supply is maintaining a slight rise. As the heating season is approaching, aluminium smelters will begin to stock up prebaked anode. 
Therefore, SMM predicts that the output of prebaked anode will increase slightly in July, but the overall operating rates may remain around 75-77%.