According to Mysteel OilChem's survey, China's anode material production reported 223,500 tonnes in August, up 3.19% from the previous month and 63.50% from the same period last year, with a monthly average capacity utilization rate of 62.71%.
Source: Mysteel OilChem
The anode material producers generally maintained active production in August, and some raised the production based on orders received. In addition, the favorable hydropower prices in the wet season prompted the top-tier producers to produce at full capacity, which build up finished products stocks for the upcoming traditional peak season.
From the raw material side, the domestic prices of low-sulfur petroleum coke (petcoke) edged up from Yuan 3,500-3,600/tonne to Yuan 3,600-3,700/tonne, with high-quality resources maintaining at around Yuan 4,000/tonne.
In terms of graphitization, as leading anode material companies continue to promote integration, the overcapacity issue in graphitization outsourcing market has further intensified. In this case, the anode material producers kept pushing down the prices of outsourced graphitization services. However, the profit margin for graphitization outsourcing companies has already approached the break-even point. Further price reductions would impose significant financial pressure and potential losses, limiting the room for additional declines.
In August, the profit per tonne of mid-end artificial graphite was Yuan 854.88/tonne, an increase of Yuan 588/tonne compared to the previous month, with a gross profit margin of 3.23%, up 2.22 percentage points month-on-month. The significant decline in raw material prices used in production during August led to a notable improvement in the profit margin of anode materials.
Regarding specific cost breakdowns: The market price for outsourced graphitization processing stood at Yuan 8,600/tonne. For raw materials, needle coke (oil-based green coke) was priced at Yuan 6,090/tonne, while low-sulfur petcoke had a market price of Yuan 3,516/tonne. Coated asphalt cost Yuan 5,100 per tonne. Overall, the total production cost reached Yuan 25,645 per tonne.
Looking ahead, the lithium-ion battery production for September is projected to be 141 GWh, representing an anticipated increase of 27.83% compared to the previous month.
In August, positive shifts emerged on the demand side. Power battery cell manufacturers began building up finished goods inventory in preparation for the upcoming peak sales season, often referred to as "Golden September and Silver October."
In the energy storage sector, the mass production of high-capacity cells (500Ah+) is accelerating. Leading companies such as CATL and HiTHIUM have already commenced mass production of ultra-high-capacity cells like 587Ah and 560Ah, driving technological upgrades across the industry.
Though the energy storage system is no longer mandatory for newly installed clean energy power generation projects, demand continues to be bolstered by computing infrastructure projects (e.g., the "East Data West Computing" initiative) and flexibility retrofits for thermal power plants.
In summary, anode material producers will likely further raise the prices, supported by both stable costs and recovering demand. However, given the still highly competitive landscape in the artificial graphite market, the momentum for price increases remains constrained. It is expected that prices will hold stable in the near term.
Written by Aggie Hu, huchenying@mysteel.com
