News Center


Has the negative turning point arrived? Why does the price of negative electrode materials increase?

Release time:

2024-06-08


BYD has launched a new round of bidding for negative electrode materials, with an average price increase of about 10-15% compared to the previous bidding, and a unit price increase of about 1500-2000 yuan/ton. As of the afternoon of June 5th, the expected bidding volume is around 130000 tons. Regarding this, a person from a winning bidder told Caixin News that it is equivalent to a slight increase, which belongs to the repair of oversold. Different product bases have different corresponding increases.

 

 

Negative electrode material companies generally believe that BYD's recent increase in the bidding price of negative electrode materials is a correction to the previously low bidding price. This price adjustment helps to improve the profitability of negative electrode material enterprises, enabling them to recover from losses or meager profits.

Negative electrode material companies generally believe that BYD's recent increase in the bidding price of negative electrode materials is a correction to the previously low bidding price. This price adjustment helps to improve the profitability of negative electrode material enterprises, enabling them to recover from losses or meager profits.

Negative electrode leader Betray replied in the latest minutes: How do you view the recent increase in negative electrode material prices in downstream customer bidding? The price increase of negative electrode materials by downstream battery manufacturers is a normal commercial behavior, which can promote the return of negative electrode material prices to a relatively reasonable profit space, partially alleviate the operational pressure of negative electrode material enterprises, and also promote the healthy and orderly development of the industry. However, the negative electrode material industry still faces fierce competition, and technological innovation and cost reduction and efficiency improvement are important measures for enterprises to enhance their competitiveness.

For negative electrode companies, the market in H1 of 2024 is undoubtedly a mixed bag of flavors. On the one hand, against the backdrop of rapid growth in terminal sales, the overall demand for raw materials has increased significantly, and the production and shipment volume of the negative electrode industry has significantly increased compared to the same period; On the other hand, limited by overcapacity and cost reduction strategies from downstream customers, the prices of negative electrode materials continue to decline even with thin profits and inverted prices.

Although the sentiment of the negative electrode industry itself has not fully returned to rationality, the prolonged downturn in the market has somewhat awakened negative electrode enterprises. In the short term, it is difficult for negative electrode materials to experience a real recovery. For the long-term and challenging battle in the future, blindly reducing prices and grabbing quantity is like drinking poison to quench thirst. The rebound in bidding prices in this tender is the best reflection of the overall weakening and stabilization of negative electrode enterprises.

Regarding the development trend of negative electrode materials, Betray believes that with the booming development of the new energy industry, the negative electrode industry is more inclined towards the concept of industrial large-scale production, and products are trending towards standardization. The company has maintained high investment in research and development for a long time, with strong R&D capabilities and a full category advantage, and can provide customers with customized and differentiated products and services.

For downstream companies, a certain degree of price increase is not an unacceptable "rebellion". Apart from the price itself, in the current turbulent market situation, whether there is sufficient supply of battery cells and terminal products, and whether they can have high-quality performance, are also the winning or losing hands for downstream and terminal enterprises to compete.

When downstream customers are faced with the three options in raw material procurement, they are willing to prioritize stable supply and excellent performance, and make certain concessions in price, which is a commendable thing. When a product does not solely rely on low prices, but rather on its own excellent quality to create market space, it means that the product can rely on its own high-quality value and gain recognition in the industry and market. For China's new energy industry, this is also a necessary measure to enhance its visibility and recognition, and is a necessary path for the industry to further develop upwards.

Therefore, this rise is seen as an oversold rebound at the bottom of the negative electrode industry. Currently, the negative electrode industry is still in a state of overcapacity, and the market supply and demand have not yet reversed. It is still too early to talk about a turning point!

Key words: