Anode Raw Materials Price Review in 2022

In the first half of 2022, petroleum coke overall market showed an upward trend, and the price continued to rise. In the first quarter, downstream enterprises began to produce in succession after the year. With the demand side actively entering the market, the market transaction atmosphere was positive; Affected by the Winter Olympic Games, some enterprises have reduced production and the market supply is tight. In the first quarter, the new capacity of anode materials expanded rapidly, and the enthusiasm of enterprises for procurement rose, driving the shipment of high-quality low-sulfur coke. For a time, high-end products were in a situation of tight supply and high prices. The price of low-sulfur petroleum coke continued to rise with fluctuations, rising until May to June, most refineries' prices reached the highest point. In the middle of the year, affected by the epidemic, some downstream enterprises' demand weakened. In addition, new anode material production pace has slowed slightly. The market is mainly based on demand procurement, some low sulfur coke prices slightly reduced. The third quarter gradually entered the inventory period, downstream enterprises' purchasing power increased, refineries' trading improved, and the ordinary low sulfur coke price rose slightly. In the fourth quarter, petroleum coke price remained generally stable, and the low sulfur petroleum coke dropped sporadically near the end of the year. The major refineries' prices have decreased, and traders' price have also declined slightly following the market, but downstream support was acceptable and coke declines were limited. With the continuous expansion of anode materials, the subsequent price may have a warming trend. 

In 2022, petroleum-based needle coke price rose first and then fell. In January and February, the Spring Festival and the Winter Olympic Games brought about environmental protection policies, which led to production suspension of some enterprises in Shandong and Hebei, petroleum-based needle coke output decreased and the market supply contracted slightly. After March, the manufacturers basically returned to normal production and new devices continued to be put into operation. In addition, the power battery market had sufficient orders, and the demand for needle coke remained strong. At the same time, affected by the international conflict, the international crude oil price continued to rise, and petroleum needle coke price was strongly supported by the cost factor. After the third quarter, prices continued to fall and the overall market was in a state of consolidation. On the one hand, due to the early stage of goods storage, the enterprise had sufficient inventory, and now entered the digestion period of raw materials; On the other hand, due to the repeated epidemic, the downstream enterprises intermediate products' inventory was at a high level, and the purchase of raw materials was gradually slowing down.

In the first and second quarters, the raw coal tar pitch rose strongly, the coal-based needle coke enterprises' production cost was high. Driven by raw materials, market price continued to rise. Affected by international conflicts, some graphite electrode enterprises delayed the delivery of export orders to Russia, and some European regions increased their graphite electrode inquiries to China. The improvement of graphite electrode demand drove the coal-based needle coke price to rise continuously.

In the second half of the year, especially since the fourth quarter, coal-based needle coke enterprises could not bear the rising price of raw materials, production costs remained high, and some enterprises were even in a loss state. Coal-based needle coke enterprises have to reduce or even stop production. In addition, upstream and downstream enterprises have a large amount of inventory in the early stage, now most of them purchase on demand, and the market demand is insufficient, which is difficult to provide sufficient support for the coal-based needle coke price, leading to a decline in the price. Feel free to contact us for latest information on anode materials market.