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China anode material output reached 372,500 tonnes in July, up 55.21 per cent year-on-year, with capacity utilisation rate rising to 83.03 per cent. Strong energy storage orders drove August lithium-ion cell production schedules up 7.40 per cent month-on-month, with energy storage cells accounting for over 40 per cent. Mid-grade synthetic graphite anode gross profit turned positive, signalling a continued industry recovery.
{alcircleadd}China anode material output reached 372,500 tonnes in July, up 55.21 per cent year-on-year, with capacity utilisation rate rising to 83.03 per cent. Energy storage orders drove August lithium-ion cell production schedules up 7.40 per cent month-on-month, with overseas large-scale storage projects accounting for over 40 per cent of cell output. Mid-grade synthetic graphite anode gross profit turned positive, signalling sustained industry recovery.
By demand segment, the energy storage market remains the primary driver of August cell production growth. Overseas large-scale storage orders are strong, with corresponding production lines running at full capacity and most manufacturers' delivery schedules extended to mid-October. In the power battery market, July is traditionally a weak season, but new energy vehicles have demonstrated greater resilience than internal combustion engine vehicles, thanks to rapid product upgrades and cost competitiveness.
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On the supply side, tier-one anode producers are operating at full capacity, with some processes facing capacity shortfalls and outsourcing more processing orders. Tier-two and tier-three producers have also ramped up production, pushing output and capacity utilisation rates to elevated levels. August anode material output is expected to remain above 375,000 tonnes.
In terms of profitability, the feedstock cost of mid-grade synthetic graphite anode edged lower in July, lifting the industry gross margin to 0.47 per cent. With needle coke and petroleum coke prices expected to rise in August, production costs for September-October will increase, providing cost support for anode material prices.
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