Chinese prebaked anode operating rates in March dropped 3.07 percentage points MoM

Shanghai Metals Market updated on April 4 that average operating rates across Chinese prebaked anode manufacturers for commercial use declined 3.07 percentage points in March from the previous month to come in at 54.9 per cent. Output cuts for cost control lowered operations across prebaked anode producers and therefore, their operating rates.

Operating rates across medium-sized producers having an annual capacity of 100,000-250,000 tonnes and above recorded a dip by 6.44 percentage points, while small producers with 100,000 tonnes of annual capacity saw the rates fall by 5.3 percentage points. Operating rates across large producers with an annual capacity of 250,000 tonnes and above, on the other hand, dropped 0.4 percentage point.

Many prebaked anode producers in Zhengzhou resumed late-March after the Chinese New Year holiday that also added a cause to the decline of operating rates.

Productions at small and medium-sized prebaked anode producers are expected to slash in April as well due to the overall sluggish market, resulting in further fall in overall operating rates.

Weak prices of petroleum coke and loose demand from primary aluminium producers could, however, bolster the prices of the prebaked anode.

Shandong Weiqiao Group earlier this week set its April benchmark purchasing price for prebaked anode at RMB 3,030 per tonne in cash, down RMB 150 per tonne from March. Such a sharp decline and strict quality examination have forced some carbon plants in Henan and Shandong to suspend or cut their anode supplies to Weiqiao.