Artificial graphite electrodes are primarily used in electric arc furnace (EAF) steelmaking, serving as a crucial high-temperature conductive material. They are also widely applied in the aluminum industry, electrolytic cells, and chemical equipment as conductive and heat-resistant components. 

【Graphite】Geopolitical and Cost Factors—Will Graphite Prices Stabilize and Rebound?

Under the dual impact of weakened cost support and supply-demand imbalance, prices of some artificial graphite anode materials declined this week.

On the cost side, upstream raw material prices have been falling for two consecutive months, laying a cost foundation for the product price decline. On the demand side, due to high inventory levels of complete vehicles, the production pace of new energy vehicles has slowed, leading to downward pressure on the demand for power battery cells. However, the small-scale energy storage market has shown signs of recovery, partially offsetting the decline in demand for battery cells. This shift in demand structure has been transmitted upstream, keeping the demand for anode materials relatively stable at the cell level. Meanwhile, supply remains abundant. As a result, the price of artificial graphite anode materials continued to decline this week.

Looking ahead, although overcapacity is difficult to resolve in the short term, geopolitical issues may provide support to stabilize and rebound costs, potentially allowing anode material prices to operate steadily.

This week, with no significant fluctuation in the cost and supply of natural graphite, the price of natural graphite anode materials remained stable.

Looking forward, as the technology of artificial graphite anodes continues to evolve, the performance gap with natural graphite anodes is narrowing. Thanks to the cost-performance advantages brought by technological breakthroughs, artificial graphite anodes are beginning to seize market share, with a noticeable shift in demand from some downstream customers. As a result, natural graphite anode materials are facing significant competitive pressure. It is expected that the price of natural graphite anode materials will continue to face long-term downward pressure.

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