Raw Material Market Trends Slightly Diverge, Prebaked Anode Cost Support Remains Firm [SMM Prebaked Anode Weekly Review]

SMM February 20 News: Raw Material Side: In the petroleum coke market, due to the rapid price surge in the early stage, downstream enterprises showed strong resistance to high prices, significantly reducing overall purchase willingness. Petroleum coke prices showed divergence during the week. Specifically, CNOOC-affiliated refineries saw moderate sales, with petroleum coke prices continuing to rise but at a slower pace. The latest bidding price increased by 50-150 yuan/mt, with refinery prices now concentrated at 5,650-5,820 yuan/mt. PetroChina-affiliated refineries in north-east China, with low inventory levels, performed well in sales, and petroleum coke prices remained largely stable during the week, currently quoted at 5,510-6,000 yuan/mt. Additionally, Dagang Petrochemical raised its petroleum coke price by 150 yuan/mt to 5,650 yuan/mt during the week. For Sinopec, downstream purchase activity was positive, and refinery sales were moderate, with petroleum coke prices rising slightly within 100 yuan/mt. Meanwhile, local refineries showed poor sales performance, and petroleum coke prices continued to weaken during the week. Currently, the average price of petroleum coke at local refineries is around 3,100 yuan/mt, down 1.05% MoM. In the coal tar pitch market, prices showed slight stability with an upward trend. As of Thursday, SMM data indicated that the average price of coal tar pitch was 4,295 yuan/mt, up 11.9% MoM. Overall, the cost side of prebaked anodes remained particularly strong. In terms of supply, prebaked anode enterprises produced according to orders, maintaining relatively sufficient overall supply. According to SMM, the impact of environmental protection factors on prebaked anode enterprises has significantly diminished, and production at some enterprises is gradually recovering. It is expected that prebaked anode supply will slightly increase this month. From the demand side, the operating capacity of domestic aluminum showed slight growth, and the demand for prebaked anodes in the domestic market performed relatively well. Brief Comment: Although the raw material market showed slight divergence during the week, the cost side of prebaked anodes remained exceptionally strong. According to SMM data, as of February 20, the cost of prebaked anodes in China reached 6,114 yuan/mt, up 0.25% from the Thursday before the holiday. Recently, the significant increase in raw material costs has brought considerable production pressure to enterprises. However, supported by strong downstream demand, enterprises maintained high operating levels. 》Click to View the SMM Aluminum Industry Chain Database

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Raw Material Market Trends Slightly Diverge, Prebaked Anode Cost Support Remains Firm [SMM Prebaked Anode Weekly Review]

[SMM Analysis] Under Strong Lithium Carbonate Supply, Prices Are More Likely to Fall Than Rise

[SMM Analysis] This Week, LCO Prices Continued to Drop Slightly, with February LCO Production Declining MoM.