SMM, August 13: Raw material side: this week, trading activity in China's petroleum coke market was moderate, while market divergence intensified; low-sulphur petroleum coke prices continued to rise, while medium- and high-sulphur petroleum coke prices were under pressure. At CNOOC refineries, auction transaction prices for petroleum coke were steady to higher; purchasing demand from downstream anode material producers remained in place, boosting coke prices. PetroChina's in-factory inventory of low-sulphur petroleum coke in north-east China was low, and its EXW prices were raised by 50-60 yuan/mt this week. At Sinopec refineries, downstream purchasing demand recovered; supported by buying from anode material producers, low-sulphur petroleum coke cargoes in the Yangtze River region saw smooth shipments and continued to underpin the market, while Sinopec petroleum coke offers continued to be raised. Overall shipments from independent refineries were moderate. As downstream restocking at the beginning of the month came to an end, the rise in medium- and high-sulphur petroleum coke prices slowed, and some prices came under pressure. The latest SMM data showed that the #1 petroleum coke spot price index in north-east China came in at 4,602.78 yuan/mt (up 1.13% WoW), the #2 petroleum coke spot price index in Shandong at 4,281.67 yuan/mt (up 0.17% WoW), the #3 petroleum coke spot price index in Shandong at 3,822.90 yuan/mt (down 1.59% WoW), and the #4 petroleum coke spot price index in Shandong at 2,069.45 yuan/mt (down 0.90% WoW). During the week, some domestic refineries completed maintenance and resumed operations, lifting refinery operating rates; market supply continued to increase, but demand-side purchasing interest was moderate. In particular, anode material producers continued to buy, supporting further gains in low-sulphur petroleum coke prices; rigid restocking demand for carbon used in aluminum production remained, forming a floor for medium-sulphur petroleum coke. Petroleum coke prices are expected to remain divergent in the short term, with low-sulphur petroleum coke relatively firm and medium- and high-sulphur petroleum coke mainly consolidating. This week, the coal tar pitch market remained strong. As of this Thursday, the average coal tar pitch price was 4,960 yuan/mt, up 1.71% from the previous Thursday. Overall, cost support for prebaked anode remained in place this week. Supply side: prebaked anode producers continued to produce based on sales; new projects in Xinjiang, Guangxi and other regions were commissioned one after another, with new capacity being released continuously. Some producers saw operating rates pull back slightly due to maintenance, but the industry's overall supply capability improved steadily. Demand side: China's operating aluminum capacity remained high, providing stable rigid support for anode consumption. Exports: new aluminum projects in Indonesia continued to be commissioned, boosting China's anode exports. Overall, high operating rates in the aluminum sector effectively underpinned domestic demand, and the export market improved marginally; however, the concentrated commissioning of new capacity made supply grow slightly faster than demand, intensifying market competition. Commentary: This week, raw material prices in China's prebaked anode market diverged, and the industry's overall production cost edged down. According to SMM data, as of August 13, China's prebaked anode production cost was 5,697.23 yuan/mt, down 0.47% from the previous Thursday, mainly because weakening medium- and high-sulphur petroleum coke dragged down raw material costs, while firm coal tar pitch partially offset this. Looking ahead, cost-side floor support remains, but upward drivers are insufficient: low-sulphur petroleum coke is firm, medium- and high-sulphur petroleum coke are consolidating, and coal tar pitch prices are strong; overall, raw materials underpin anode prices but are unlikely to push costs upward. On the supply-demand front, high operating rates in the aluminum sector continued to underpin domestic demand, and export orders recovered at the margin, bringing incremental demand; however, the concentrated commissioning of new industry capacity and the continued expansion of supply further intensified market competition. Going forward, close attention should be paid to changes in supply-demand patterns and price trends of prebaked anode and upstream raw materials.

[SMM Lithium Battery Anode Raw Material Market Weekly Review: Demand Expectations Improve; Anode Raw Material Coke Prices Stabilize at Highs] August 13: This week, China's anode material raw material coke market prices maintained a stable trend.

SMM, August 6: Raw material side: trading in China's petroleum coke market remained strong this week, with performance diverging across grades and overall prices holding up well. Refinery side, major refineries firmed steadily, supporting the market. Auction transaction prices for petroleum coke at CNOOC's various plants continued to climb, with gains concentrated at 30-160 yuan/mt. Downstream anode material enterprises showed strong buying interest, boosting coke prices. In PetroChina's north-east China operations, in-factory inventory of low-sulphur petroleum coke was low. Coupled with the concentrated release of downstream rigid demand, EXW prices were raised by 100-300 yuan/mt this week. At Sinopec refineries, downstream procurement demand recovered, and coke cargoes for anode-material and energy-storage applications in the Yangtze River region shipped smoothly, continuously underpinning the market. Sinopec's petroleum coke offers continued to move higher. Overall shipments from independent refineries were moderate. Prices were strong initially and then weakened, with visible divergence emerging across different specifications. SMM's latest data showed that the No. 1 petroleum coke spot price index for north-east China came in at 4,551.51 yuan/mt, up 3.07% WoW; the No. 2 petroleum coke spot price index for Shandong came in at 4,274.42 yuan/mt, down 0.05% WoW; the No. 3 petroleum coke spot price index for Shandong came in at 3,884.73 yuan/mt, up 3.92% WoW; and the No. 4 petroleum coke spot price index for Shandong came in at 2,088.15 yuan/mt, down 0.23% WoW. Recently, operating rates at China's refineries picked up and market supply increased. However, demand-side purchasing interest remained moderate; coupled with stockpiling and restocking by downstream enterprises early in the month, this provided support. High- and low-sulphur grades continued to diverge, and petroleum coke prices are expected to consolidate at highs in the short term. The coal tar pitch market continued to hold up well this week. As of this Thursday, the average coal tar pitch price was 4,876.67 yuan/mt, up 3.47% from last Thursday. Overall, cost-side support for prebaked anodes continued to strengthen this week. Supply side, prebaked anode enterprises maintained a production pace based on sales. New anode projects in Xinjiang, Guangxi and other regions came online one after another, and new capacity continued to be released. Meanwhile, some enterprises saw operating rates pull back slightly due to maintenance, but overall the industry's supply capability improved steadily and supply flexibility strengthened further. Demand side, China's operating aluminum capacity remained high, providing steady, rigid support for prebaked anode consumption. Export side, new aluminum projects in Indonesia continued to come online, driving continued improvement in China's anode exports. Overall, China's new prebaked anode supply continued to materialize, high operating rates at downstream aluminum enterprises effectively underpinned domestic demand, and the export market improved at the margin. The industry's overall supply-demand balance remained stable, but as new capacity continued to be released, supply grew slightly faster than demand and the competitive landscape became increasingly intense. Brief comment: This week, China's prebaked anode raw material side improved in tandem, and the industry's overall production cost rose. According to SMM data, as of August 6, China's prebaked anode production cost was 5,723.68 yuan/mt, up 2.26% from last Thursday. In terms of prices, China's prebaked anode prices mainly edged down in August. The August prebaked anode tender price at a large aluminum producer in Shandong fell 53 yuan/mt MoM, while quotes from a major domestic prebaked anode sales enterprise showed an upward trend, up 59 yuan/mt MoM. Looking ahead, cost-side support remains in place: petroleum coke still has relatively strong bottom support, coal tar pitch market conditions are improving in tandem, and raw materials overall provide fairly good support for anode costs. Supply-demand side, high operating rates at China's aluminum enterprises continue to underpin domestic anode demand, and export orders are recovering at the margin, bringing incremental growth. However, the concentrated release of new industry capacity and sustained supply expansion are further intensifying market competition. Going forward, close attention should be paid to changes in the supply-demand pattern and price trends of prebaked anodes and upstream raw materials.

[SMM Lithium Battery Anode Raw Material Market Weekly Review: Short-Term Difficulty in Altering the More-Likely-to-Rise-Than-Fall Pattern of Anode Raw Material Coke Prices] August 6: This week, overall anode raw material coke prices in China continued their upward trend, with slight differentiation in the price increases among various categories.

Silica: This week, silica market offers remained stable. Demand side, profit pressure persists in the silicon metal industry, and some silicon metal enterprises implemented production cuts this week, causing the overall operating rate to pull back. Downstream silicon plants, raw material procurement expectations further contracted, with plants following just-in-time procurement for orders and cost control intensity staying high. Overall, the production cuts downstream have not yet been transmitted to silica prices, and the short-term silica market is expected to remain mainly stable. Silicon Coal: Silicon Coal: This week, the silicon coal market saw divergent regional trends, with caking coal prices in Xinjiang reduced by 100 yuan/mt to around 1,250 yuan/mt, while silicon coal offers in other regions remained stable. Demand side, from July to early August, operating rates at silicon metal enterprises in Xinjiang, Gansu, Inner Mongolia, and Sichuan pulled back, weakening downstream just-in-time procurement of silicon coal; the procurement growth brought by production resumptions during the rainy season in south-west China earlier weakened, leaving overall demand stimulation sluggish. Overall, the decline in downstream production further suppressed the silicon coal market, and the short-term silicon coal market remained in the doldrums. Petroleum Coke: This week, the domestic petroleum coke market saw good trading performance, with segment trends diverging and overall prices holding up well. Port spot prices of Formosa Plastics petroleum coke continued to climb, currently at around 1,550-1,600 yuan/mt. According to SMM monitoring, as of this Thursday, the price index for 1# petroleum coke in north-east China was at 4,551.51 yuan/mt, up 3.07% from last Thursday. The price index for 4# petroleum coke in Shandong was at 2,088.15 yuan/mt, down 0.23% from last Thursday. Recently, domestic refinery operating rates rose, increasing market supply, but procurement enthusiasm from the demand side was moderate, coupled with restocking and stockpiling by downstream enterprises at the start of the month providing support, high- and low-sulfur varieties saw continued divergence in trends, and short-term petroleum coke prices are expected to mainly consolidate at highs. Electrodes: Recently, carbon electrode prices edged up, with ordinary power carbon electrodes (diameter 1,272 mm) at 7,200-7,400 yuan/mt and ordinary power carbon electrodes (diameter 960-1,100 mm) at 6,300-6,600 yuan/mt, up around 200 yuan/mt from the previous period. This was mainly due to higher petroleum coke prices on the raw material side pushing up electrode production costs, with some producers moderately increasing their offers. Downstream silicon plants mainly made just-in-time procurement, and coupled with expectations of a weaker operating rate at silicon enterprises, the electrode price adjustment was mainly driven by the cost side, with the demand side remaining under pressure. Subsequent electrode prices are expected to shift to mainly remaining flat.

Recently, Qingdao Haida Ruiyuan New Energy Technology Co., Ltd. announced its plan to construct a lithium battery anode material expansion project utilizing existing completed factory facilities. The project is located east of Liugezhuang Village, Tianzhuang Town, Pingdu City, Qingdao, Shandong, with a total investment of 117 million yuan. The site covers a total area of 14,777.5 square meters, with a building area of 14,777.5 square meters. Main production equipment includes mechanical mills, roller mills, reactors, and tunnel kilns. The project primarily uses petroleum coke (needle coke), calcined petroleum coke, and asphalt as raw materials, which undergo pelletizing, roasting, and other processes to produce lithium battery anode materials. The production capacity is 80,000 tons per year.