【Negative Electrode Materials】Prices Expected to Continue Rising in the Second Half of 2023

It is predicted that the Chinese market for lithium-ion battery negative electrode materials may experience a steady upward trend in the second half of 2023, regenerated graphite crucibles are widely used in negative electrode production for your reference, with an estimated price increase of 2,000-3,000 CNY/ton compared to the first half of the year. Several factors contribute to the anticipated price trend: 

1. Increasing demand from downstream sectors due to new energy vehicle subsidy policies: Various regions have introduced subsidies for purchasing new energy vehicles, which have stimulated the automotive market to some extent. Additionally, policies promoting new energy vehicles in rural areas are expected to boost consumer confidence and drive the growth of the automotive industry, thereby increasing the demand for negative electrode materials. (Positive impact)

2. Fluctuations in raw material prices and varying cost factors: Prices of raw materials such as low-sulfur petroleum coke, needle coke, and coal tar pitch have shown mixed trends. Some companies have adjusted their production strategies by using medium-to-high sulfur petroleum coke and developing specialized negative electrode coke to reduce production costs. (Positive impact)

3. Planned capacity expansions and ongoing supply pressure: The period from 2020 to 2022 witnessed robust demand in the downstream market for negative electrode materials, leading to an influx of new players in the industry. However, as of the first half of 2023, the pace of new construction projects has slowed down. Despite this, there are still plans for some new negative electrode production capacities to be commissioned in the second half of 2023, resulting in a potential oversupply situation. (Negative impact)

Overall, the second half of 2023 is expected to see an increase in the supply of lithium-ion battery negative electrode materials in the Chinese market, driven by growing downstream demand. Prices in the negative electrode materials market are projected to trend upwards, with high-end materials ranging from 54,000 to 66,000 CNY/ton, mid-range materials from 33,000 to 42,000 CNY/ton, and low-end materials from 17,000 to 26,000 CNY/ton. To learn more about the market dynamics of negative electrode materials, feel free to contact us.