Chinese prebaked anode prices may get support due to production cut
2015-12-24 09:18:51 [Print]
BEIJING (Asian Metal) 24 Dec 15 - In early December, Chinese prebaked anode prices moved down further to around RMB2,500/t (USD386/t) ex works. However, Chinese producers predicted that the price may not drop further as producers in Henan cut production in December and those in Shandong may also follow the suit.
A Henan-based prebaked anode producer reported that their concluded price in Henan was around RMB2,600/t (USD401/t) d.d.p. this week. “I think the price may keep stable next month,” said the source, who explained that prebaked anode supply will become less due to production cut and aluminum ingot price has rebounded to RMB10,700/t (USD1,652/t).
According to the source, most producers in Henan were out of production for ten days due to Shanghai Organization Summit held in Zhengzhou earl this month. “We just resumed production late last week,” said the source, adding that they may produce around 6,000-7,000t of prebaked anode in December, down by 1,000-2,000t compared with that in November.
Based on the annual capacity of 150,000t, they may produce 100,000t this year, down by 20% YOY.
A Shandong-based prebaked anode producer confirmed that they received the notice for production cut in mid-December. “Due to environment pollution, local government requests us to cut production by 60% in Shandong province,” said the source, adding that their outputs may keep unchanged at 15,000-16,000t in December, but may go down by 60% next month.
According to the source, they sell prebaked anode to Inner Mongolia, Xinjiang and Shandong provinces. “The price to Inner Mongolia is around RMB3,120-3,170/t (USD482-489/t) d.d.p, the same with that early this month,” said the source, who predicted that the price may get support next month, and consumers may face tight prebaked anode supply problem.
Based on the annual capacity of 200,000t, they may produce 180,000t in 2015, up by 10-15% YOY. However, the output in 2016 may decline due to strict policy on environment pollution.
A Henan-based prebaked anode producer reported that their concluded price in Henan was around RMB2,600/t (USD401/t) d.d.p. this week. “I think the price may keep stable next month,” said the source, who explained that prebaked anode supply will become less due to production cut and aluminum ingot price has rebounded to RMB10,700/t (USD1,652/t).
According to the source, most producers in Henan were out of production for ten days due to Shanghai Organization Summit held in Zhengzhou earl this month. “We just resumed production late last week,” said the source, adding that they may produce around 6,000-7,000t of prebaked anode in December, down by 1,000-2,000t compared with that in November.
Based on the annual capacity of 150,000t, they may produce 100,000t this year, down by 20% YOY.
A Shandong-based prebaked anode producer confirmed that they received the notice for production cut in mid-December. “Due to environment pollution, local government requests us to cut production by 60% in Shandong province,” said the source, adding that their outputs may keep unchanged at 15,000-16,000t in December, but may go down by 60% next month.
According to the source, they sell prebaked anode to Inner Mongolia, Xinjiang and Shandong provinces. “The price to Inner Mongolia is around RMB3,120-3,170/t (USD482-489/t) d.d.p, the same with that early this month,” said the source, who predicted that the price may get support next month, and consumers may face tight prebaked anode supply problem.
Based on the annual capacity of 200,000t, they may produce 180,000t in 2015, up by 10-15% YOY. However, the output in 2016 may decline due to strict policy on environment pollution.
Graphite Electrode H.P. D500mm EXW China
Unit:RMB/mt
China prebaked anode producers' operating rate statistics by province by month
Unit: %
