【Anode Materials】Why Can Anode Materials Increase in Price?

Ⅰ. Tender Price Increase:

BYD's anode tender price increased by 15% month-on-month this month. Specifically, the tender price rose by 10% to 15% compared to the average price of the last tender, with the unit price increasing by about 1500 to 2000 yuan/ton. This price increase has not been the first since the beginning of 2024; BYD had already raised prices during the Q1 tender.

Ⅱ. Tender Volume:

As of the afternoon of June 5th, the expected tender volume was around 130,000 tons.

Ⅲ. Reasons for the Price Increase:

1. Supply and Demand: The anode material market is generally in a state of oversupply, but the utilization rate of production capacity by leading companies is high, concentrating market share at the top. High-Quality Graphitized Petroleum Coke Specifications for Anode Material Preparation.

2. Demand Growth: The release of new products by BYD and other new energy vehicle manufacturers, along with increased market enthusiasm, has driven continued demand for anode materials.

3. Ensuring Supply: By raising procurement prices, BYD helps improve the financial situation of anode material manufacturers, thereby ensuring their continuous supply capability to support BYD's 2024 car sales growth targets.

Ⅳ. Market Feedback and Trends:

Although the increase in the new energy market's enthusiasm and the positive trend in anode material demand have brought some vitality to the market, price competition within the anode material market remains unavoidable. Actual transaction prices continue to stay low, and the industry's overall profits remain in a "low-profit era." Some views suggest that the worst phase of unit profitability in the anode business is over, and overall, it is expected to show a trend of improvement quarter by quarter.

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