[SMM Analysis] August Natural Graphite Anode Material Price Review and Future Trend Forecast

SMM September 5: In August, natural graphite anode prices slightly declined. Supply side, flake graphite market sentiment remains low, with mining operating rates yet to improve, leading to lower prices; spherical graphite, affected by the overall market of natural graphite anodes being continuously compressed by artificial graphite anodes, has a smaller market share, limited transactions, and declining prices. Demand side, domestically, although market activity picked up in August, anode enterprises, due to high inventory levels and significant financial pressure, did not see a significant increase in production, and downstream purchasing was also limited. At the same time, artificial graphite anodes currently have a significant price advantage, continuously squeezing the natural graphite anode market. Overseas, August exports did not show significant improvement. Considering that overseas battery cell enterprises generally had poor operating conditions this year, H2 production may not see substantial growth, and natural graphite purchasing volumes are also limited. Additionally, overseas customers, affected by costs, are currently testing and introducing artificial graphite, leading to weak demand for natural graphite in H2. Although natural graphite anode prices have been adjusted downward due to falling raw material prices, the industry's bidding intensity is significantly lower than that of artificial graphite anodes, resulting in limited price reductions and weak market competitiveness.
In September, despite the incremental effect brought by the "September-October peak season," the boost for natural graphite anodes is limited, and the market may continue to be sluggish, with prices likely to remain weak.