On July 18, the roasting process of Guangxi Investment Group Qiangqiang Carbon-based New Materials' annual 600,000 mt carbon-based new material project, under Guangxi Aluminum Group, completed start-production operations, marking the project's official entry into the trial production phase. As the core step of prebaked anode production, the roasting process is mainly responsible for the high-temperature binder coking of carbon blocks. The project is equipped with two 60-chamber roasting furnaces, overhead traveling cranes, carbon block cleaning robots, and other key equipment, along with an integrated management and control platform covering logistics, automatic temperature regulation, and carbon block detection. Through highly automated and intelligent operation modes, it ensures the stable output of high-quality prebaked anodes.

[SMM Aluminum Express] On July 18, the Chenfeng Carbon Green and Energy-Saving Integrated Project of Qiya Xinjiang Group achieved another critical construction breakthrough as its core baking workshop successfully completed equipment installation and officially entered the full-line interlocking commissioning phase. This milestone, following the trial production at the assembly workshop on June 15, means that the project’s entire production process has been fully integrated, bringing it one step closer to formal commissioning. The project is a core supporting initiative for Qiya Xinjiang Group to complete the “coal – electricity – aluminum – carbon” integrated industry chain. Located in the Zhundong Economic and Technological Development Zone in Changji, Xinjiang, it is planned to produce 200kt of prebaked anodes annually, aiming to supply high-quality prebaked anodes for the group’s internal aluminum production, thereby ensuring self-sufficiency and reducing dependence on external procurement and logistics costs.

[SMM Aluminum Bulletin] This week, the coal tar pitch market continued to weaken. As of Thursday, the average price of coal tar pitch was 4,705 yuan/mt, down 3.35% WoW. On the cost side, high-temperature coal tar remained weak; operating rates at coal tar deep-processing enterprises increased, leaving ample commercial pitch supply in circulation and an overall loose supply picture. Downstream, prebaked anode consumption stayed rigid, supported by high aluminum capacity, but with raw material inventories at high levels, buyers pushed for lower prices and insisted on need-based purchasing. Weak demand from secondary downstream sectors such as carbon black failed to provide a boost, and trading was thin. In the near term, under loose supply-demand conditions, coal tar pitch will likely consolidate at lows on a weak note.

[SMM Aluminum Bulletin] This week, the raw material side of China's prebaked anode market saw further divergence: regional performances in the petroleum coke market varied, but overall fundamentals held firm, while the pullback in coal tar pitch prices exerted a slight drag on anode costs, and overall production costs remained mostly stable. According to SMM data, as of July 23, China's prebaked anode production cost stood at 5,556.7 yuan/mt, pulling back slightly by 0.20% WoW.

SMM July 23: Raw material side: This week, trading in China’s petroleum coke market was slightly divergent, with the low-sulphur petroleum coke market performing well while mid- and high-sulphur petroleum coke came under some pressure. On the refinery side, major refineries collectively held prices firm to support the market. CNOOC raised its petroleum coke offers steadily across its refineries, with overall trading activity markedly improving; PetroChina’s in-factory inventory of low-sulphur petroleum coke in north-east China was at a low level, and with centralized release of downstream rigid demand, EXW prices climbed steadily, completing staggered price increases at multiple sites on July 22. For refineries under Sinopec, downstream purchasing enthusiasm improved recently, providing some support to coke prices, which were raised slightly by 20-100 yuan/mt. Local refineries, on the other hand, saw divergent overall shipment performance. For low-sulphur petroleum coke, driven by price increases from major refineries, prices edged up; for mid- and high-sulphur petroleum coke, downstream purchasing willingness was moderate, and the market was mainly under pressure. The latest SMM data showed that the NE China #1 petroleum coke spot price index was recorded at 4,415.73 yuan/mt, up 2.04% WoW; the Shandong #2 petroleum coke spot price index was recorded at 4,237.31 yuan/mt, up 1.13% WoW; the Shandong #3 petroleum coke spot price index was recorded at 3,696.83 yuan/mt, down 1.87% WoW; and the Shandong #4 petroleum coke spot price index was recorded at 2,003.69 yuan/mt, down 0.74% WoW. On the supply side, some units that were under maintenance earlier gradually resumed production this week, and coking operating rates slowly recovered. On the demand side, increased purchasing enthusiasm in the downstream anode material market supported the low-sulphur petroleum coke market, which held up well. The market for carbon used in aluminum production still held a wait-and-see sentiment, and high-priced products saw insufficient downstream purchasing willingness, hindering the transmission of price increases. Coupled with geopolitical instability, continuously climbing crude oil prices provided cost support. In the short term, petroleum coke prices are expected to consolidate, with continuing divergence across grades. The coal tar pitch market trend remained subdued this week. As of Thursday this week, the average price of coal tar pitch was 4,705 yuan/mt, down 3.35% WoW. On the cost side, high-temperature coal tar continued to weaken, tar deep-processing enterprises raised operating rates, commercial pitch was in ample supply, and overall supply was loose. Downstream, although prebaked anode consumption remained rigid supported by high aluminum capacity, raw material inventory was at high levels, and buyers pushed for lower prices while sticking to need-based purchases. Demand from secondary downstream sectors such as carbon black was sluggish and failed to provide a boost, resulting in thin trading. In the short term, under a loose supply-demand balance, coal tar pitch is likely to consolidate at lows on a weak note. Overall, cost support for prebaked anode held firm this week. Supply side, prebaked anode enterprises maintained a production pace of producing based on sales. New anode projects in regions such as Xinjiang and Guangxi came on stream successively, 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 further increased. Demand side, China’s operating aluminum capacity stayed high, providing stable rigid support for prebaked anode consumption. On the export front, new aluminum projects in Indonesia continued to come on stream, driving sustained improvement in China’s anode exports. Overall, new prebaked anode supply in China was continuously realized, high operating rates in downstream aluminum effectively underpinned domestic demand, and the export market saw marginal improvement. The industry’s supply-demand balance remained generally stable, but with continuous release of new capacity, supply growth slightly outpaced demand growth, and the competitive landscape tended to intensify. Brief Comment: This week, the raw material market trends for prebaked anode in China showed intensified divergence: the petroleum coke market saw varying regional performance but overall fundamentals remained supportive, while the pullback in coal tar pitch prices slightly dragged on anode costs, and overall production costs remained stable. According to SMM data, as of July 23, China’s prebaked anode production cost was 5,556.7 yuan/mt, down 0.20% from last Thursday. Looking ahead, on the cost side, petroleum coke is expected to have strong bottom support, coal tar pitch is likely to consolidate on a subdued note, and overall raw material support for anode costs will be moderate. On the supply-demand front, high operating rates at domestic aluminum enterprises will continue to support anode domestic demand, and marginal recovery in export orders brings growth; however, the concentrated release of new capacity and continuous supply expansion intensify market competition. Going forward, attention should be paid to the pace of new capacity releases and the divergence between petroleum coke and coal tar pitch on the cost side.

Overall assessment: Driven by new capacity releases in Southeast Asia and expansion into emerging markets, China’s prebaked anode exports are expected to maintain a mild growth trajectory in H2 2026, with full-year cumulative export volume likely sustaining a double-digit YoY growth rate.

After the completion and operation of Qiya Xinjiang Group’s Chenfeng Carbon Green Energy-Saving Integrated Project, it will not only consistently meet the group’s internal demand for high-grade prebaked anodes in aluminum production and reduce reliance on external markets and logistics costs, but also further optimize the efficient collaborative chain of the aluminum-based industry, form a closed-loop industry chain, and promote the prosperous development of the regional coal–electricity–aluminum integrated supporting industries. Looking ahead, Qiya Xinjiang Group will fully leverage Xinjiang’s unique energy resource conditions, uphold the principles of innovation-driven and green development, continuously expand the depth of the industry chain, and enhance product added value.

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.

On July 12, Sunstone Development Co., Ltd. and Guizhou Aluminum Industry Group Co., Ltd. held a groundbreaking ceremony for their jointly invested project with an annual output of 300,000 mt of prebaked anode in the Shuicheng Economic Development Zone, Liupanshui City, Guizhou Province. The project, located in the Shuicheng Economic Development Zone, is planned to build a production line with an annual output of 300,000 mt of prebaked anode and supporting public auxiliary facilities such as waste heat power generation and flue gas purification. The construction includes the entire process production line covering petroleum coke calcination, green anode manufacturing, and anode baking, as well as a comprehensive waste heat utilization system.

Overall, the supply-demand fundamentals of the prebaked anode market are expected to remain stable in H2, but against the backdrop of continuous new capacity release, industry competition may intensify, and price trends will be more influenced by cost-side disruptions and downstream procurement pace.