【Anode Materials】Raw Material Prices Surge in Q1, Lagging Price Transmission in Anode Market

 The rapid growth of the EV and energy storage industries is boosting demand for high-performance lithium batteries, driving the market for quality petroleum coke and synthetic graphite. The quality and particle size of calcined petroleum coke directly affect synthetic graphite performance, especially in anode production.

【Anode Materials】Raw Material Prices Surge in Q1, Lagging Price Transmission in Anode Market

In the first quarter, prices of various raw and auxiliary materials used in anode material production all increased, pushing up production costs. However, price transmission to anode materials has been relatively lagging. There is an expectation of price increases in the anode material market in the future.

I. Rising Raw Material Prices, Stable Anode Material Prices

Table: Price Comparison Between March and January (RMB/t)

As of the end of March, major materials used in anode production saw the following increases compared to the end of December: low-sulfur coke rose by RMB 394/t, up 9.12%; oil-based needle coke (green coke) increased by RMB 950/t, up 15.95%; coating pitch rose by RMB 600/t, up 10.91%. These raw materials are refinery-produced products. Due to the U.S.-Iran conflict driving up oil prices, product prices have remained firm and continued to rise, while supply has tightened. Under these circumstances, mainstream prices in the anode material market still follow previous contracts, with only sporadic adjustments in a few small orders.

II. Gradual Decline in Artificial Graphite Production Profit

Figure 1: Mid-range Artificial Graphite Production Profit (RMB/t)

Source: Oilchem

As of the end of March, the production profit of mid-range artificial graphite was RMB 1,164.92/t, with a gross margin of 4.09%. Since the production cycle of anode materials exceeds 40 days, the transmission of high raw material costs to anode materials is delayed, and is expected to be reflected in finished products produced in May. If anode material prices fail to increase as expected, artificial graphite production profits may return to a negative margin in May.

III. Expected Price Increase in Anode Materials in Q2

Figure 2: Artificial Graphite Price Forecast (RMB/t)

Source: Oilchem

Under pressure from elevated costs, profit margins for anode material producers have narrowed, prompting price negotiations between producers and downstream battery manufacturers. The market shows a strong willingness to increase prices. Downstream demand is steadily recovering, with continued growth in energy storage orders and gradual recovery in the power battery market. Supported by both costs and demand, anode material prices are expected to have a negotiated increase of RMB 500–1,000/t.

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