Synthetic strengthens as natural remains rangebound: Anode and graphite Q2 2026 price review

Trends in anode active material (AAM) prices showed clear divergence between synthetic and natural graphite material in Q2 2026. Synthetic graphite AAM prices increased as demand strengthened and feedstock costs rose. Natural graphite AAM prices, meanwhile, remained broadly unchanged amidst weaker relative demand, substitution pressure and relatively stable feedstock prices.

The divergence was most evident in June, when synthetic graphite producers began passing through earlier feedstock cost increases. By contrast, natural graphite AAM remained relatively rangebound throughout the quarter. As such, low-energy synthetic AAM prices rose above $2,900/tonne, reaching parity with and then exceeding natural graphite AAM for the first time since May 2023.

Synthetic graphite gains as producers begin passing through costs

Average synthetic graphite AAM prices rose by 0.1% from mid-March to mid-April, supported by stronger coke costs and robust domestic battery demand in China. Low-energy grade prices, however, increased by more than 1%, driven by firmer demand from the energy storage system (ESS) sector and a 3.7% rise in low-sulphur pre-calcined petroleum coke prices during April.

EV-grade synthetic graphite AAM prices remained stable between mid-April and mid-May despite a 9.5% increase in pre-calcined pet needle coke prices in April. Improved demand lifted operating rates amongst major AAM producers, widening the utilisation gap between them and lower-tier players. However, persistent oversupply and strong buyer leverage prevented coke producers from fully passing through higher costs, keeping margins under pressure.

In May, synthetic graphite feedstock prices saw a divergence. Needle coke prices increased by 3.6%, whilst low-sulphur pet coke prices fell by 9.8% as weaker crude oil prices and rising imports increased port inventories.

Although pet coke prices were stable throughout June, pre-calcined pet needle coke prices continued to rise, increasing by 3.6%, while the lagged effect of higher pet coke prices seen in previous months finally enabled AAM producers to pass these costs through to cell makers, with prices across grades rising by 0.5%-3.8% from mid-May to mid-June.

Natural graphite holds steady as oversupply weighs on demand

Natural graphite AAM prices remained broadly unchanged from April to June. In April, -100 mesh, 94-95% C flake graphite prices (DDP China) rose by 1.8%, reflecting higher production costs linked to rising energy prices and tighter availability following disruptions in Heilongjiang Province. Prices fell by 1.2% in May as supply from Heilongjiang and Madagascar recovered.

By June, natural graphite AAM remained broadly unchanged for a third straight month, with demand improving only slightly. This is as a result of the continued substitution pressure from synthetic material, and material oversupply weighing most heavily on mid-and-low-end grades. On the feedstock side, flake graphite also held relatively steady as finer mesh grades remained sufficient to meet battery demand and Heilongjiang environmental-related suspensions offset weak refractory and steel demand helping to keep overall flake pricing rangebound.