Monthly Review: Robust Downstream Demand, Low Needle Coke Inventory

This month, the needle coke market has seen brisk trading, with downstream enterprises showing high enthusiasm for purchases. Negative electrode material companies have made substantial purchases, while graphite electrode producers have procured based on rigid demand. As a result, the overall inventory of the needle coke industry has declined. This month, raw material slurry oil prices continued to rise. After the National Day holiday, two needle coke companies plan to resume production. Despite high trading volumes, the transaction focus has remained low, with most companies offering discounts. Specifically, coal-based needle coke prices range from 7,500-8,500 yuan/ton, oil-based needle coke prices from 7,400-8,700 yuan/ton, and mainstream prices for coal- and oil-based green coke from 4,750-6,300 yuan/ton. In the import and export market, Japanese coal-based needle coke is priced at 800 USD/ton, with Korean coal-based needle coke prices also declining to 800 USD/ton in August. For oil-based needle coke, Japanese prices range from 1,100-1,300 USD/ton, British calcined coke prices from 925-1,125 USD/ton, and prices for coke used in negative electrodes remain stable at 650-800 USD/ton.

 

Regarding raw materials, coal tar pitch prices initially rose and then stabilized this month. Despite an initial increase driven by rising raw material coal tar prices, the overall price acceptance capacity of downstream sectors remained limited. In the latter half of the month, as coal tar prices declined, coal tar pitch prices largely moved sideways. Downstream buyers entered the market cautiously, pressing for lower prices. It is anticipated that coal tar pitch prices will trend downward in October. For low-sulfur slurry oil, prices continued to rise this month, with refineries actively shipping and downstream sectors stockpiling before holidays. It is expected that low-sulfur slurry oil prices will continue to increase, raising cost pressures for oil-based needle coke.

 

On the downstream front, the graphite electrode sector has performed well this month. Being in the traditional peak season, graphite electrode producers are primarily purchasing raw materials based on rigid demand, with no strong need for restocking in the short term, maintaining a stable approach. In the negative electrode material sector, the operating rate has continued to improve this month, with strong demand for raw materials. Leading negative electrode material companies have made multiple purchases of raw materials this month. Terminal battery cell production is expected to remain high in October, and it is anticipated that demand for raw materials from the negative electrode material sector will stay elevated in the coming month.

 

Overall, this month has seen good sales of needle coke, with low industry inventory. Downstream demand is expected to remain robust in October, and there are expectations for further cost increases. It is anticipated that needle coke prices will remain stable in the early part of October.