【Negative Electrode Materials】Market Prices to Rise in the Second Half of 2023

In the second half of 2023, the trend of China's negative electrode materials market is forecasted as follows:

Steady Rise in Raw Material Prices: With the global economic recovery and progress in pandemic control, international oil prices are expected to rebound. This will drive up the prices of raw materials such as asphalt and oil, increasing the production costs of soft carbon, mesocarbon microbeads (MCMB), and other negative electrode materials. Additionally, the prices of needle coke are expected to stabilize and rise as downstream demand improves. Providing graphitized petroleum coke series products for your selection. The recovery and growth of the domestic and international new energy vehicle markets will increase the demand for artificial graphite negative electrode materials, while the adjustment and optimization of the domestic steel industry will raise the demand for graphite electrodes. 

Strong Downstream Demand: The second half of 2023 will witness a peak season in the new energy vehicle market. According to forecasts by CPCA, China's annual sales of new energy vehicles in 2023 are expected to reach 7 million units, a year-on-year increase of 60%. The sales in the second half of the year are projected to reach 4.5 million units, with an 80% year-on-year growth. This surge in demand for new energy vehicles will significantly boost the demand for negative electrode materials, especially high-performance materials like artificial graphite and hard carbon.

Moderated Capacity Expansion: In the second half of 2023, some negative electrode materials manufacturers will face pressure to be eliminated or transformed due to intensified market competition and stricter policy regulation. Meanwhile, some leading manufacturers will control the speed and scale of capacity expansion to maintain market balance and profitability.

Considering the factors mentioned above, it is anticipated that China's negative electrode materials market prices will rise in the second half of 2023. Due to increased raw material costs, rising downstream demand, and moderated capacity expansion, the prices of negative electrode materials in China are expected to show an upward trend.

According to predictions by a certain research institution, the average price increase in China's negative electrode materials market in the second half of 2023 will be around 9%. High-performance materials like artificial graphite and hard carbon are expected to see larger price increases of approximately 16%, while low-performance materials like natural graphite and soft carbon will experience smaller price increases of about 6%. Contact us for daily reports on the negative electrode material market.