SMM, July 16: Raw material side: This week, China's petroleum coke market held up well overall, with prices consolidating on a firm note and a strong bullish sentiment prevailing. Prices of petroleum coke across all specifications rose broadly, with low-sulphur petroleum coke showing a particularly clear upward trend. On the refinery front, CNOOC's Binzhou, Taizhou, and Huizhou Petrochemical plants generally raised their prices, providing strong support to the market. PetroChina's low-sulphur petroleum coke in north-east China saw steadily rising prices due to low inventory and active just-in-time procurement from downstream enterprises. Prices at Sinopec's refineries were largely stable. Disruptions arose as typhoon-related impacts halted loading and unloading operations at Shandong ports during the week, obstructing the arrival and discharge of imported petroleum coke. Downstream enterprises were forced to turn to domestically produced coke, leading to a concentrated release of domestic substitution demand. This directly boosted trading activity for local refineries, driving transaction prices continuously higher. SMM's latest data showed that the north-east China 1# petroleum coke spot price index closed at 4,327.53 yuan/mt, up 0.88% WoW from last Thursday. The Shandong 2# petroleum coke spot price index closed at 4,190.07 yuan/mt (up 3.17% WoW from last Thursday), Shandong 3# petroleum coke spot price index at 3,767.26 yuan/mt (up 2.77% WoW from last Thursday), and Shandong 4# petroleum coke spot price index at 2,018.56 yuan/mt (up 8.06% WoW from last Thursday). As the typhoon impact faded, Shandong ports gradually resumed operations and expectations for imported supply replenishment strengthened, cooling trading sentiment in the domestic petroleum coke market. The spot market is expected to enter a consolidation phase in the near term. The coal tar pitch market consolidated on a subdued note this week. As of this Thursday, the average price of coal tar pitch was 4,868 yuan/mt, down 2.41% WoW from last Thursday. The price trend of coal tar, a raw material, weakened, and further downside room is expected in the near term. The operating rate at deep-processing enterprises continued to rise. Downstream prebaked anode operating rates fluctuated at highs, but buyers persistently pushed for lower prices, making only just-in-time procurement. Shipments of carbon black faced pressure, leaving raw material purchasing enthusiasm insufficient. The supply-demand pattern in the market is relatively loose, and the coal tar pitch market is expected to consolidate on a subdued note in the near term. Overall, cost support for prebaked anode remained relatively firm this week. Supply side: Prebaked anode enterprises are maintaining a production pace of producing based on sales. New anode projects in Xinjiang, Guangxi and other regions are being commissioned successively, continuously releasing new capacity. Meanwhile, some enterprises saw their operating rates pull back slightly due to maintenance. However, overall, the industry's supply capability has steadily improved, further enhancing supply elasticity. Demand side: China's operating aluminum capacity stayed high, providing steady and rigid support for prebaked anode consumption. On the export front, new aluminum capacity in Indonesia continued to be commissioned, driving a MoM improvement in export orders for Chinese prebaked anodes to Southeast Asia. Geopolitical tensions in the Middle East have eased somewhat, and aluminum enterprises previously affected have begun to gradually resume production. This is expected to spur a recovery in anode procurement demand in the future. In summary, new supply of domestic prebaked anodes is being continuously realized, while high operating rates of downstream aluminum effectively underpin domestic demand. The export market is showing marginal improvement. Overall supply and demand for the industry remains stable, but as new capacity continues to be released, supply growth is slightly outpacing demand growth, leading to a more intense competitive landscape. Summary: The raw material market trends for China's prebaked anode industry clearly diverged this week: petroleum coke prices provided relatively strong support, while the decline in coal tar pitch prices exerted a limited drag on costs, resulting in an overall rise in comprehensive anode production costs. According to SMM monitoring, as of July 16, the cost of China's prebaked anode was 5,567.91 yuan/mt, up 1.28% WoW from last Thursday. Looking ahead, the cost support from the petroleum coke market remains relatively strong, while coal tar pitch prices are expected to consolidate on a weak note. Overall raw material support is moderate. In terms of supply and demand, high operating rates in China's aluminum industry support demand, and export orders are improving marginally. However, with the continued release of new capacity, industry competition will become increasingly intense. The fundamental pattern of supply growth slightly outpacing demand growth is likely to persist. Going forward, close attention should be paid to changes in the supply-demand pattern and price trends for prebaked anode and its upstream raw materials.

SMM, July 9: Raw material side: This week, trading in China's petroleum coke market was lackluster. The low-sulphur coke market sentiment improved, with prices edging up; mid- and high-sulphur coke saw sluggish downstream procurement, causing prices to drift lower, and the overall market price center shifted slightly downward. Specifically, this week, transaction prices for petroleum coke at CNOOC's Binzhou refinery edged up, Taizhou Petrochemical resumed operations, and the Zhoushan Petrochemical unit remained shut down for maintenance. For PetroChina, low-sulphur coke prices in north-east China consolidated on a strong note, while petroleum coke prices at Sinopec's refineries were largely stable. Local refineries saw moderate shipments, and petroleum coke prices fell under pressure. The latest SMM data showed the spot price index for 1# petroleum coke in north-east China at 4,289.63 yuan/mt, up 0.28% WoW; the spot price index for 2# petroleum coke in Shandong at 4,040.29 yuan/mt, down 0.67% WoW; the spot price index for 3# petroleum coke in Shandong at 3,665.89 yuan/mt, down 0.26% WoW; and the spot price index for 4# petroleum coke in Shandong at 1,868.08 yuan/mt, down 2.14% WoW. Supply side, refineries' concentrated maintenance in July gradually wrapped up, driving production resumptions. Coupled with high port inventories, overall market supply was relatively ample. Demand side, rigid demand from carbon used in aluminum production formed a floor, while purchasing enthusiasm from anode material enterprises improved slightly. In the near term, the divergence across petroleum coke grades is expected to persist, with the overall price center consolidating and drifting lower. This week, the coal tar pitch market held up well. As of Thursday, the average coal tar pitch price stood at 4,988 yuan/mt, up 2.33% WoW. Coal tar prices remained high in a stalemate, and the operating rate at deep-processing enterprises edged up, leading to a slight increase in supply. Downstream anode enterprises focused on rigid restocking at the start of the month; sellers and buyers continued their standoff. Raw material cost support persisted, but the supply growth from higher deep-processing operating rates and downstream resistance to high prices were capping further price rises. In the near term, coal tar pitch prices are expected to consolidate at highs, with limited upward momentum. Overall, this week, cost support for prebaked anode remained relatively firm. Supply side, prebaked anode enterprises maintained a production pace of producing based on sales. New anode projects in regions like Xinjiang and Guangxi gradually came online, continuing the release of new capacity. Meanwhile, operating rates at some enterprises pulled back slightly due to maintenance, but overall industry supply capability grew steadily, further enhancing supply elasticity. Demand side, China's operating aluminum capacity stayed high, providing stable, rigid support for prebaked anode consumption. Export orders, new aluminum projects in Indonesia continued to ramp up, driving a MoM improvement in anode export orders from China to South-east Asia. Geopolitical tensions in the Middle East eased somewhat, with previously affected aluminum enterprises gradually resuming production, which is expected to drive a recovery in anode procurement demand going forward. Overall, new domestic prebaked anode supply is being fulfilled consistently, high downstream aluminum operating rates effectively support domestic demand, and the export market showed marginal improvement. The industry's overall supply-demand balance remained steady, but with the continuous release of new capacity, supply growth slightly outpaced demand growth, intensifying the competitive landscape. Brief: This week, China's prebaked anode raw material market diverged, with limited fluctuations in overall cost. According to SMM monitoring, as of July 9, China's prebaked anode cost was approximately 5,497.67 yuan/mt, up 0.68% WoW. Cost side, the petroleum coke market continued its structural divergence, while coal tar pitch prices consolidated on a strong note. Overall raw material side support was moderate, with coal tar pitch contributing strength and petroleum coke acting as a divergent drag. Supply and demand, high domestic aluminum operating rates supported demand, and export orders improved marginally. However, with the continuous release of new capacity, industry competition intensified, and the pattern of supply growth slightly outpacing demand is likely to persist. Future focus should remain on the pace of new capacity additions and the cost-side divergence between petroleum coke and coal tar pitch.

SMM, July 2: Raw Material Side: This week, the domestic petroleum coke market saw average shipment performance, with prices showing mixed performance during the week. Indicators continued to diverge, and the price center declined somewhat. Specifically, this week, transaction prices for petroleum coke at CNOOC’s Binzhou refinery were largely stable, Taizhou Petrochemical resumed operations mid-week, and the Zhoushan Petrochemical unit remained shut down for maintenance. Prices for low-sulphur petroleum coke from PetroChina’s affiliates in north-east China were generally stable with a slight rise, petroleum coke prices at Sinopec’s refineries were broadly stable, and shipments from local refineries performed poorly, with petroleum coke prices falling under pressure. The latest SMM data showed that the Shandong 2# petroleum coke spot price index was recorded at 4,067.69 yuan/mt, down 1.49% from last Thursday; the Shandong 3# petroleum coke spot price index was recorded at 3,675.48 yuan/mt, down 3.28% from last Thursday; and the Shandong 4# petroleum coke spot price index was recorded at 1,908.99 yuan/mt, down 7.57% from last Thursday. Affected by concentrated maintenance at some refineries, the operating rate of China’s coking units stayed low in early July, tightening domestic petroleum coke supply further. Demand showed structural divergence. High aluminum operating rates provided stable support for prebaked anode demand, and carbon enterprises’ monthly restocking led to improved transactions for medium-sulphur petroleum coke; anode material enterprises continued to focus on cost control and purchasing as needed, and upward momentum for low-sulphur petroleum coke prices was relatively insufficient. The petroleum coke market is expected to remain divergent in the short term. The coal tar pitch market held up well this week. As of this Thursday, the average price of coal tar pitch was 4,875 yuan/mt, up 1.46% from last Thursday. Coal tar prices stayed high and stagnant, the operating rate of deep-processing enterprises edged up slightly, and supply increased marginally; downstream anode enterprises mainly restocked as needed at the start of the month, with a stalemate between sellers and buyers continuing. Raw material cost support remained, but demand growth was limited, and the coal tar pitch price is expected to continue consolidating with a generally stable but slightly firm tone in the short term. Overall, cost support for prebaked anodes weakened slightly this week compared to the prior period. Supply side, prebaked anode enterprises continued their production pace of producing based on sales. New anode projects in regions like Xinjiang and Guangxi came on stream in succession, with new capacity being released continuously; meanwhile, some enterprises saw their operating rates pull back slightly due to maintenance, but overall, the industry’s supply capability improved steadily and supply flexibility increased further. Demand side, China’s operating aluminum capacity stayed high, forming steady and rigid support for prebaked anode consumption. On the export front, new aluminum projects in Indonesia continued to come on stream, driving a MoM improvement in domestic anode export orders to Southeast Asia; the geopolitical situation in the Middle East eased somewhat with no signs of further deterioration. If the regional situation remains stable, production at affected aluminum enterprises is expected to recover gradually, leading to a recovery in anode procurement demand. Overall, new domestic prebaked anode supply continued to be delivered, high operating aluminum rates effectively supported domestic demand, and the export market improved marginally. The industry’s supply and demand remained generally stable, but as new capacity continued to be released, market competition will stay high. Summary: This week, China’s prebaked anode raw material market trend diverged. Affected by the retreat of the petroleum coke price center, the overall cost of prebaked anodes continued to shift lower. According to SMM monitoring, as of July 2, China’s prebaked anode cost was approximately 5,460.36 yuan/mt, down 1.64% from last Thursday. On the price side, domestic prebaked anode prices edged up in July. A large aluminum smelter in Shandong raised its July prebaked anode tender price by 30 yuan/mt MoM, and a major domestic prebaked anode sales enterprise raised its quote by 13 yuan/mt MoM. Looking ahead, the petroleum coke market will continue to show structural divergence, coal tar pitch prices will hold up well, and overall support from the raw material side will remain relatively firm; regarding supply and demand, China’s high aluminum operating rates will support demand, and export orders improved marginally. However, as new capacity continues to be released, industry competition will stay high. Future focus should be on changes in the supply-demand pattern and price trends of prebaked anodes and upstream raw materials.

[SMM Aluminum Flash News] Recently, the vessel "Furui," loaded with prebaked anode cargo, successfully departed from the bulk cargo terminal of the Binzhou Port Area of Bohai Bay Port, Shandong Port, marking the successful addition of a new high-value-added cargo category to Binzhou Port's bulk and breakbulk business. The launch of this new cargo category was an important achievement in the deepening strategic cooperation between Binzhou Port and Sunstone Global Supply Chain, and also a key step for the port to break through its traditional cargo source structure and optimize its business layout, which is of great significance for enhancing the port's comprehensive service capabilities and strengthening its competitiveness in the regional market.

[Environmental Impact Re-assessment for the Annual 500-Ton New Lithium Battery Electrolyte for Electric Vehicles Project] On December 24, the Binzhou Municipal Ecology and Environment Bureau accepted and announced the environmental impact assessment documents for the electronic-grade hydrofluoric acid technical renovation project of a company in Shandong. The relevant project details are as follows: After the technical renovation, the project will produce 6,000 t/a of electronic-grade hydrofluoric acid, 1,000 t/a of high-purity anhydrous hydrogen fluoride (electronic grade), and 1,901 t/a of industrial-grade hydrofluoric acid. The total production capacity will remain unchanged with no new capacity added.

Recently, Binzhou Beihai Science and Technology Incubator Co., Ltd. and Shandong Xinruihang Special Aluminum Co., Ltd. held a project signing ceremony, marking the official establishment of a 20 million yuan project in the Binzhou Beihai Science and Technology Incubator Park to produce 5,000 tons of high-end aluminum alloy profiles and precision parts for new energy vehicles annually. It is understood that the project will create an aluminum deep-processing production base integrating R&D, production, and sales. Upon reaching full production capacity, it will achieve an annual output of 5,000 tons of high-end aluminum alloy profiles and precision parts for new energy vehicles, with an estimated annual tax revenue of approximately 5 million yuan. This will provide strong support for technological iteration and industrial upgrading in the fields of new energy vehicles and energy storage. The project focuses on high-end aluminum deep processing and new energy equipment, precisely aligning with Beihai's "4+4+1" modern industrial system layout. Through specialized deep processing of aluminum rods, it will further extend the high-end aluminum deep processing industrial chain, promoting the transformation of the regional aluminum industry from "primary aluminum processing" to "high value-added aluminum products," injecting new vitality into the high-quality development of the Beihai Economic Development Zone.

From a comprehensive supply-demand fundamental perspective, the current petroleum coke market is in a situation of increasing supply and tightening demand, coupled with downstream enterprises adopting a more cautious purchasing approach. SMM expects the price divergence of petroleum coke to persist in the short term. Among them, mainstream refineries are likely to maintain stable quotations, while local refineries may exhibit a generally stable with slight fall trend.

[Binzhou Vehicle Trade-in Subsidy Policy] Based on the implementation of the vehicle trade-in subsidy policy in Binzhou City, Shandong Province, it was decided after research that subsequent vehicle trade-in subsidy activities in the city will adopt the approach of "first obtain eligibility, then apply for subsidy." From November 5, 2025 (inclusive, the same hereinafter) to December 31, subsidy eligibility for vehicle retirement and renewal, as well as replacement renewal in Binzhou City, will be regularly released through the China UnionPay "Cloud Flash Pay APP."

【SMM Aluminium Flash News】Recently, the Department of Industry and Information Technology of Shandong Province announced the list of "leaders" in energy efficiency in key provincial industries in 2025. Huihong New Materials Co., Ltd. in Zhanhua District, Binzhou City was successfully selected for its systematic energy efficiency management model, industry-leading technological innovation capabilities and precise control of energy consumption throughout the entire process.

[SMM Petroleum Coke Update] This week, the petroleum coke market saw relatively stable shipments. As month-end approached, downstream enterprises exhibited increasing wait-and-see sentiment, while refineries made minor adjustments to petroleum coke prices. Specifically, CNOOC-affiliated refineries reported a slight rise in winning bid prices, with current prices ranging from 3,750-3,800 yuan/mt. Binzhou Petrochemical resumed auctions on Thursday, with the starting bid rising by 100 yuan/mt to 3,700 yuan/mt, according to SMM. PetroChina-affiliated refineries in north-east China maintained smooth shipments, with petroleum coke prices remaining largely stable this week, currently ranging from 3,536-4,451 yuan/mt. Sinopec-affiliated refineries reported moderate shipment performance, with petroleum coke prices largely stable, though some enterprises saw slight increases. Local refineries showed slightly divergent shipment performance during the week, with petroleum coke prices mostly stable. The high-sulphur petroleum coke market performed well, with smooth shipments. Overall, current petroleum coke shipments remain moderate. Despite growing wait-and-see sentiment among downstream buyers as month-end approaches, rigid demand persists. SMM expects petroleum coke prices to trend weakly next week.