Weekly Review: Stable Downstream Demand, Strong Price Support Sentiment (Mar. 1-7)

This week, the anode material market remained relatively stable. Although raw material prices are still high, their upward momentum has started to slow, suggesting limited room for further cost increases in the future. Despite a slight decline, raw material prices remain elevated, and the industry's sentiment to maintain prices is strong, with signs of price increases in mid-to-low-end materials.

Downstream demand in March has shown resilience, providing solid support to the market and maintaining a positive trend. In terms of demand, the battery market has stabilized this week, with an expected month-on-month production increase of about 10% in March, in line with expectations. By segment, the digital consumer sector has continued its strong performance from February. In the power battery sector, some top enterprises have performed well, supported by new vehicle stockpiling, while others have resumed normal production rhythms. In the energy storage sector, orders have been concentrated among the top five enterprises, with other companies performing steadily. Overall, the current recovery pace is normal, without the sharp month-on-month increases seen last year.

Regarding raw materials, low-sulfur coke prices continued to decline this week, as downstream customers slowed their purchasing. During this price correction phase, downstream enterprises are mainly observing the market. Sinopec's coke for anode production remained stable, and refinery inventory pressure was low. The needle coke market also remained steady, with needle coke producers operating stably. Downstream anode companies still have a considerable volume of new orders, and graphite electrode companies are purchasing as needed. The price of low-sulfur oil residue, a raw material, has seen a slight rebound.

The graphitization outsourcing market remained largely unchanged this week, with no significant fluctuations compared to last week. The current downward trend in coke prices has somewhat restrained the pricing intentions of graphitization outsourcing companies, leaving the market in a wait-and-see mode. Although these companies generally have price increase demands, actual price hikes have not yet materialized, and the market remains relatively stable.

Overall, the anode material market remained stable this week, with good downstream demand support in March.