【Negative Electrode Materials】Profitability and Market Analysis in the First Half of 2023

Ⅰ. Analysis of Negative Electrode Materials Industry Profitability in the First Half of 2023

In the first half of 2023, the middle-grade artificial graphite average profit was 9,311.29 yuan/ton, and the low and middle-grade artificial graphite prices have approached the cost end. The industry's profit has gradually been compressed since the beginning of the year. Cost reduction in raw materials, graphiteization process, and technological innovations remain the development direction for negative electrode material enterprises. Graphite crucible the supporting resource for the negative electrode materials...... 

Ⅱ. Analysis of Supply and Demand in the Negative Electrode Materials Market in the First Half of 2023

Since the fourth quarter of 2022, the overall supply and demand pattern in the negative electrode materials market has changed. This trend continued into the first half of 2023, with prominent supply and demand imbalances in the negative electrode materials market. Negative electrode material enterprises are mostly producing based on confirmed orders, while downstream battery manufacturers are cautious in their stocking and tend to procure on demand, putting strong pressure on prices. The overall capacity utilization rate of negative electrode material enterprises is between 50% to 60%, with leading enterprises having relatively higher capacity utilization rates and focusing on executing long-term orders, while smaller enterprises have lower capacity utilization rates. Starting from May 2023, some enterprises began to slightly increase production, leading to a rise in capacity utilization rates.

In May 2023, the apparent consumption of artificial graphite decreased, with China's artificial graphite negative electrode materials market having an apparent consumption of 32,700 tons, representing a month-on-month increase of 12.37%. From January to May, the cumulative apparent consumption reached 197,400 tons.

From January to May, the production and sales of new energy vehicles were 3.005 million and 2.94 million units, respectively, with year-on-year growth rates of 45.1% and 46.8%, respectively. Among them, the production and sales of pure electric vehicles were 2.199 million and 2.146 million units, respectively, with year-on-year growth rates of 33.9% and 35.3%. For more information on lithium battery negative electrodes and the supporting products, feel free to communicate with us.