Chinese prebaked anode prices likely to remain downtrend in H2 2019: SMM
Shanghai Metals Market forecasts that the prices of prebaked anode are unlikely to see a significant rebound in the second half of the year due to excessive capacity. Prices will continue to follow raw materials costs range-bound in the near future.
Heating season environmental cuts on carbon mills may only lift the prices of prebaked anode, but after September.
In July, the prebaked anode prices failed to record any growth as slow resumption and build-out of aluminium capacity aggravated a supply glut. Moreover, they followed the prices of petroleum coke, which also remained sluggish after producers resumed from maintenance. Petroleum coke is the raw material used to produce prebaked anode.
The uptick in June’s prices was mainly buoyed by a price rally of raw materials including petroleum coke and asphalt amidst maintenance.
Prices in August will continue to remain downward, as Shandong Weiqiao Group, one of the top aluminium producers in China, has lowered their prebaked anode purchasing prices for August by RMB 50 per tonne. Thus, the Weiqiao Group’s benchmark purchasing prices for prebaked anode for August stands at RMB 2,995 per tonne in cash.
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