【Negative Electrode Materials】Supply and Demand Imbalance, Market Facing Challenges

The supply and demand imbalance in the negative electrode materials market is posing a challenge for the industry in China. Graphite crucible is a supporting product for lithium negative electrodes for  reference. The market is currently facing three major issues: sustained cost reduction, overcapacity in the industry, and weak demand from downstream enterprises, all of which are negative factors for the market. 

Specifically, the current market price for lithium-ion battery negative electrode materials in China is weak and shows a downward trend. According to feedback from downstream enterprises, while the market demand started to rebound in the second quarter, the market outlook is still uncertain, and most companies have no clear idea when the market will improve. The market situation has not met expectations, and companies have accumulated a significant inventory, so they are currently mainly focused on inventory clearance and rational procurement of negative electrode materials based on demand. The negative electrode materials market has been affected by the previous overcapacity expansion and is currently showing signs of overcapacity. The market prices are relatively chaotic, with fierce competition in the middle and low-end product markets, and low-price sales exist. Companies are mainly focused on consuming inventory rather than actively producing, and the market sentiment is more prone to buying when prices rise rather than when they fall, which has weakened the demand support for the negative electrode materials market and created a poor overall trading atmosphere. The insufficient demand from end-users has also impacted the upstream raw materials sector, with prices of low-sulfur petroleum coke, coal tar pitch, and needle coke continuously declining. The processing fee for the graphiteization of negative electrodes has been reduced to near the cost line, which has led to a decline in production costs for negative electrode materials companies. The downstream market is exhibiting strong price pressure. Overall, the recent performance of the negative electrode materials market has been poor, and the price stabilization support is insufficient.

As of now, the mainstream price for high-end negative electrodes is between 56,000 and 68,000 yuan/ton, for mid-range negative electrodes it is between 41,000 and 51,000 yuan/ton, and for low-end negative electrodes, it is between 20,000 and 29,000 yuan/ton. Contact us to Learn more about Negative Electrode Materials and Related Products Industry Trends.