【Negative Electrode Materials Industry】2024 Spring Festival Market Analysis

I. Overview

Due to the uncertainty in the upstream and downstream situations of the negative electrode materials market, raw material traders and downstream customers have slightly slowed down their stocking pace, keeping their inventory pressure at a medium to low level. Additionally, with the suspension of sales in the negative electrode materials industry chain market during the Spring Festival holiday period and logistics transportation at a standstill, the overall spot prices of negative electrode materials have remained relatively stable. 

The resumption of work in the negative electrode materials industry chain market is mostly concentrated from February 18th to February 19th. However, currently, most companies are preparing for related work resumption matters and immersed in New Year greetings. There hasn't been a significant change in actual transactions yet. Most are waiting for downstream enterprises to resume work and market activity to gradually increase before making further price adjustments.

II. Market Overview

During the Spring Festival period, the negative electrode materials market operated steadily, with most companies basically on holiday. Coupled with temporary stagnation in logistics operations, downstream battery factories had stocked up before the holiday. After the fifth day of the Lunar New Year, logistics transportation gradually resumed, and there was a slight recovery in the delivery of some negative electrode materials products, leading to a gradual warming of the market. The operational status of various types of negative electrode materials during the Spring Festival period is as follows:

1. Petroleum Coke

During the Spring Festival period, the supply and demand of petroleum coke market stagnated, with overall market conditions remaining stable. Refineries in northeast and north China of PetroChina switched to pricing sales, while Sinopec's shipments were smooth with low inventory. CNOOC refineries conducted pre-sale stocking before the Spring Festival, and the actual transaction prices of some refineries showed a slight decline after a small rise.

2. Calcined Petroleum Coke

Most calcined petroleum coke (CPC) factories operated normally during the holiday period, mainly fulfilling previous orders. Some companies had completed orders for February, and there was no significant market fluctuation during the Spring Festival period.

3. Needle Coke

During the Spring Festival period, petroleum-based needle coke mainly relied on essential shipments. Due to logistics constraints, most companies' shipments stagnated, resulting in weak demand for negative electrode materials and low production enthusiasm. The operating rate of electric arc furnace steel mills continued to decline significantly, and the graphite electrode market lacked positive support, leading to limited demand for needle coke.

4. Negative Electrode Materials

Some small factories stopped production during the Spring Festival period, and the overall operating situation of the negative electrode market remained at a low level. The landing speed of new construction and expansion of negative electrode capacity has slowed down. Negative electrode materials inventory remained high, new orders were limited, and some enterprises conducted line maintenance during the Spring Festival period to maintain basic production, while some small-scale enterprises stopped production for maintenance.

5. Lithium Batteries

During the Spring Festival period, the overall operating rate of lithium battery production was low, influenced by downstream orders. Inventory of power batteries remained high, and subsequent operations continued to focus on destocking. In the energy storage battery market, projects under bidding were signed one after another before the year-end, but the overall pace depends on the subsequent implementation. In the digital sector, new orders were received gradually before the holiday, and sufficient reserves of raw material inventory were made. The post-holiday recovery was relatively fast.

III. Corporate Attitudes

According to surveys conducted on the upstream and downstream of the negative electrode materials industry chain during the Spring Festival period, various companies provided feedback as follows:

Petroleum Coke Enterprises: Prices remained stable during the Spring Festival period, but low-sulfur prices should increase slightly after the New Year, although the increase should not be significant.

Negative Electrode Materials Enterprises: In previous years, as the time for resuming work approached, they would receive calls urging for shipments from customers. This year, it was very calm, and the overall market is still relatively sluggish.

Lithium Battery Enterprises: Specific situations depend on downstream vehicle orders. Based on the overall analysis from last year, demand will be observed around April.

IV. Future Market Forecast

With the increase in overseas main factory operating rates and the resumption of work and production by downstream battery factories, there will gradually be small increases in orders for negative electrode materials, leading to increased procurement and stocking of raw materials. It is expected that by the end of the first quarter, the recovery of some small battery cell factories will drive some demand. From April to June, major downstream battery manufacturers will gradually recover, marking a key period for the overall growth of the year. Consult Us Anytime for More Negative Electrode Materials Market Insights!