Anode material graphitization price continues to decline, the market competition intensifies

In December, anode graphitization average price was 17806 yuan/ton, down 19% month-on-month. Learn more about the supply information of artificial graphite electrode for preparing anode material.

With the gradual release of graphitization capacity, anode manufacturers graphitization self-supply ratio continues to increase, the fourth quarter graphitization price dropped significantly. In order to seize the market, the emerging independent graphitization enterprises have greater bargaining space, and the market competition is further intensified.

On the supply side, most of the graphitization capacity that is currently rising is in anode integration projects, while the release of new independent graphitization capacity has slowed down significantly.In the current situation of weak demand and price, some graphitization enterprises choose to take vacations and reduce production during the Spring Festival, so the actual supply of graphitization is expected to continue to decline.

In December, the independent graphitization monthly capacity was 32,600 tons, the supporting graphitization monthly capacity was 88,900 tons, and the total graphitization capacity was 121,500 tons. In January 2023, the independent graphitization monthly capacity is expected to be 32,600 tons, the supporting graphitization monthly capacity is expected to be 101,700 tons, and the total graphitization capacity is expected to be 134,300 tons.

On the demand side, at present, China's mainstream battery cells plants are still dominated by artificial graphite anode materials, and there is still a demand for graphitization, however, the decline of subsidies for new energy vehicles has brought greater uncertainty to the future demand. In addition, the current self-supply rate of graphitization of anode manufacturers is increasing, and in the short term, the demand for outsourcing graphitization is expected to be weak.

Price forecast:

At present, the demand side is generally weak, and the supply side capacity is increasing rapidly, which may lead to a situation of oversupply of graphitization in the future.The industry pricing power will be gradually transferred to the downstream. The cost reduction of the battery cells plants may force the upstream enterprises to reduce the price. In addition, with the rapid change of the anode graphitization industry pattern, the market competition is more severe, in the future, graphitization price may gradually return to reasonable profits. For more anode material market analysis, feel free to consult us.