[SMM Analysis] Market Supply and Demand Conditions Are Ideal, Anode Prices Remained Stable This Week

SMM January 2 News:

This week, anode prices remained stable. Cost side, low-sulphur petroleum coke prices remained high this week, with slight price increases at some refineries. Oil-based needle coke, previously at low price levels with limited profit margins, showed a tendency for price hikes in the market. However, due to weak downstream demand, prices are still under negotiation and are expected to remain stable in the short term. Graphitisation side, high electricity costs during the dry season, coupled with price suppression by downstream anode producers, have pushed the profit margins of outsourced graphitisation close to the cost line, leading to a tendency for price increases. However, due to weak market demand for outsourced graphitisation, price hikes are difficult to achieve, and prices are expected to remain relatively stable in the short term. Demand side, downstream customers were still in a rush for installations and stockpiling before the year-end, with demand at an annual high and shipments in an ideal state. With anode prices at low levels and raw material costs remaining high, the survival and profitability of anode enterprises have been significantly compressed, creating a strong desire for price increases. However, constrained by price suppression from downstream battery cell manufacturers, prices remain relatively stagnant.

SMM New Energy Research Team

Cong Wang 021-51666838

Xiaodan Yu 021-20707870

Rui Ma 021-51595780

Ying Xu 021-51666707

Disheng Feng 021-51666714

Yujun Liu 021-20707895

Yanlin Lü 021-20707875

Ye Yuan 021-51595792

Chensi Lin 021-51666836

Zhicheng Zhou 021-51666711

Haohan Zhang 021-51666752

Zihan Wang 021-51666914

Xiaoxuan Ren 021-20707866

Yushuo Liang 021-20707892

Jie Wang 021-51595902

Yang Xu 021-51666760

Mengqi Xu 021-20707868