The price of negative electrode materials has risen and the needle coke has increased by as much as 500%.

Since March 9, 2017, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Environmental Protection and other 16 ministries and commissions jointly issued the "Guiding Opinions on Promoting the Withdrawal of Outdated Production Capacity by Using Comprehensive Standards in Accordance with Laws", stating that it is necessary to crack down on illegal production and sales of "strip steel". "Activity, according to the law, the power frequency furnace, medium frequency furnace and other equipment for the production of construction steel were completely dismantled. The major steel-making enterprises have been replaced by electric arc furnaces. The graphite electrode is used as an essential part of electric arc furnace steelmaking. The demand for graphite electrodes has increased sharply. Pulling the price of needle coke rose.

Needle coke price skyrocketing

Since the cobalt price soared in the first half of this year, the lithium-ion negative raw material needle coke began to take down the baton. Needle coke is a high quality material used primarily for the production of high power, ultra high power graphite electrodes and negative materials for power lithium batteries .

The survey found that from the beginning of this year, the price of needle coke rose frantically, and the price rose from 4,000 yuan / ton to the current 20,000 yuan / ton, an increase of up to 500%, there are four main reasons:

1, demand side: the graphite electrode market suddenly increased

Due to the rectification of the extensive steel industry by the state supply side reform, the demand for electric arc furnaces in steel mills has increased rapidly, and the demand for graphite electrodes for electric arc furnace steelmaking has increased sharply, resulting in the needle coke market not being reflected in time, and the market supply is limited. The price has risen sharply.

According to relevant institutional data, the annual demand for graphite electrodes may reach nearly 600,000 tons. The 100,000-ton demand gap is difficult to ease during the year. The agency expects the price of ultra-high-power graphite electrodes to exceed 100,000 yuan/ton, which is doubled from the current price.

2, the supply end: needle coke 90% dependent on imports

The technical barrier of needle coke is very high, but domestic production enterprises are few, and the quality of domestic production is unstable, 90% depends on imports. However, the total number of imports cannot meet the demand, and the previous inventory has been consumed, resulting in the shortage of needle coke products in China.

3, the price is stable

Previously, the price of cathode materials rose sharply, and subsidies fell back to the car companies. Power battery companies have been unable to control costs in the pinch, and in order to stabilize and consolidate the cooperation with battery companies, anode materials companies have temporarily digested themselves. The pressure from rising raw material prices.

Since the second half of this year, the imbalance between supply and demand in the anode raw material market has become increasingly fierce, and raw material inventories have been basically consumed. The pressure of high-priced purchases has come to the forefront of the company. Therefore, the submission of negative electrode materials is the general trend.

It is understood that some artificial graphite anode materials companies have raised prices by 20% to 30%, and most companies are also studying to raise the price of products.

4, environmental protection big stick waving leads to capacity reduction

Due to environmental protection and other reasons, the state ordered the closure of some low-end small needle coke production enterprises, as well as some needle coke production enterprises equipment maintenance, capacity can not be converted into production. Most of the production enterprises in Hebei, Shandong and Henan provinces have been restricted and stopped production. The agency expects annual production to be less than 500,000 tons, which will accelerate the price increase of needle coke.

Negative companies shuffle, technology can compete for a place

It is understood that up to now, there are 55 anode material companies in China. In 2016, Betray, Shanghai Shanshan and Jiangxi Aster still occupy the top three positions in the industry, and the output of the three accounts for more than 55%.

In the first half of 2017, competition in anode materials companies intensified.

Fangda Carbon's semi-annual report for 2017 showed that during the reporting period, the company achieved a net profit attributable to shareholders of the listed company of approximately RMB 412 million, representing an increase of approximately 2647% over the same period last year. In the second quarter, the company achieved a net profit attributable to the parent company of 338 million yuan, up 8453.21% year-on-year; EPS in the second quarter was 0.20 yuan, and EPS in the first quarter was 0.04 yuan.

Fangda Carbon's 2Q profit reached a new high in a single quarter, and significantly exceeded the annual results for the past four years. The reason why the company's 2Q results improved significantly, mainly due to the rapid increase in the price of graphite electrodes of the company's main products since the closure of strip steel in March this year. The price of 500mm ultra-high power graphite electrodes in the second quarter has increased by 289% to 70,000 yuan/ton.

Like the newcomers in the power battery market, in terms of deep-binding customers and expanding market share, mainstream negative-counter companies have already taken advantage of the first-mover advantage. The chances of newcomers re-breaking the market structure are not great. The key to success is technology research and development. competition.

In recent years, silicon and lithium titanate are considered to be the best anode materials in the future, and silicon has a specific capacity of up to 4200 mAh/g, while having the advantages of low cost and environmental friendliness. However, at present, graphite is the mainstream, and related institutions expect that silicon and lithium titanate can be commercialized after 2020.

At present, 3-4 domestic silicon carbon anode materials technology is relatively mature, including Shenzhen Beitui, Shanghai Shanshan, etc., but it is still in small-scale trial development, based on feedback from battery manufacturers.

It can be seen that the new material of the anode material is just around the corner. In the face of the new market opportunities brought about by the upgrading of technology, only by grasping the development of a new generation of high-capacity anode material technology, can we seize the opportunity to expand market share and squeeze into the front line. echelon.