【Synthetic Graphite】Reduced Cost Pressure, Declining Downstream Demand

1. Petroleum Coke

In August, domestic refinery coke prices remained low, with several price adjustments improving sales at some refineries. Independent refineries also lowered prices in line with major refineries to ensure sales. While market supply was ample, demand from the anode material sector weakened, limiting the procurement of petroleum coke by anode manufacturers. This weakened support for coke prices, and as a result, the low-sulfur coke market in China is expected to operate under weak conditions in the short term.

2. Calcined Coke

This month, low-sulfur calcined coke prices continued to decline slightly. Most factories were fulfilling previous orders, while prices for new orders in September showed minor downward adjustments. With the price of raw petroleum coke continuing to drop, there were no adjustments to August calcined coke contracts, though factories expect further declines for new orders in September. Downstream sectors such as graphite electrodes remained cautious, mostly adopting a wait-and-see approach.

3. Needle Coke

In August, the market for petroleum-based needle coke was stagnant, with raw needle coke priced at ¥5,100/ton and calcined needle coke at ¥7,500/ton. Meanwhile, coal-based needle coke was priced at ¥5,000/ton for raw material and ¥7,500/ton for calcined. Production and operational rates for needle coke decreased over the month, as new orders for downstream anode materials slowed, reducing demand. petroleum-based needle coke producers mainly produced based on orders, while coal-based needle coke producers continued large-scale shutdowns. On the demand side, anode material production decreased significantly in August, with overall operating rates dropping to 48.16%. Procurement of needle coke was cautious and driven by essential needs.

4. Coated Pitch

In August, coated pitch prices remained weak but stable, with petroleum-based products averaging ¥8,000/ton and coal-based at ¥7,500/ton. The decline in operating rates in the downstream anode market weakened demand, leading to cautious procurement of raw materials. With insufficient new orders, the coated pitch market is expected to continue weak operations in the short term.

5. Natural Graphite Anode

Natural graphite imports declined this month. Coupled with low operating rates at end-user steel mills, downstream buyers showed low inventory stocking sentiment, and demand for flake graphite did not see significant growth. The flake graphite market was in a weak supply-demand balance this month, and prices are expected to remain stagnant next month.

6. Synthetic Graphite Anode

In August, prices for low-sulfur coke and needle coke continued to decline, reducing production cost pressure for synthetic graphite anode manufacturers. However, due to persistently low prices for mid- to low-end anode materials, profit margins for some manufacturers remained thin. Downstream terminal consumption demand contracted, leading to slower sales in the anode market. The “supply-demand mismatch” in the anode market persisted.

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