Chinese prebaked anode prices to extend decline in April on weaker demand

Shanghai Metals Market found commercial used prebaked anode prices across China to likely extend its decline in April on weaker demand. With sufficient inventories, most aluminium producers had been found purchasing prebaked anode cautiously. Prebaked anode stocks at a large aluminium producer currently stand at over 30 days, SMM learned.

Meanwhile, carbon producers struggled to lower their inventories of the prebaked anode and for doing so, some carbon producers even went ahead and lowered offers below market prices so that more and more aluminium producers indulge in buying their cargoes.

Moreover, environmental probes remained strict in the two consecutive sessions, resulting in some carbon producers in Shandong and Henan to cut production as they failed to meet emission standards. This affected the carbon production in March.

Besides, rising production cost also resulted in lowered output as some carbon producers had to curtail production for cost control. However, according to SMM, these production cuts are not strong enough to buoy prices of the prebaked anode in April.

Weakened prices of petroleum coke and coal tar pitch also had been a cause for lowered prebaked anode prices, according to SMM, as the latter failed to find support from the cost front in March.

Expectedly, prices of the prebaked anode for commercial use will get some support from petroleum coke price from May, as the petroleum coke market will enter its traditional high season in the said month.

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