Rising raw material prices for anode materials are putting cost pressure on downstream industries.

I. Fundamentals (Core Support for Price Increases)

The graphite industry, in which LINZHANG XINHUI CARBON CO.,LTD operates, maintains low inventory levels. In November 2025, flake graphite inventory decreased by 33.92% year-on-year and 7.07% month-on-month, clearly indicating a supply shortage. The US has removed high tariffs, and China, accounting for over 95% of global production capacity with irreplaceable technological barriers, coupled with restrictions on high-performance spherical graphite exports, has increased the industry's pricing power and tightened supply. On the demand side, benefiting from the booming new energy vehicle and energy storage sectors, China's graphite anode shipments are projected to reach 3.7 million tons in 2026, accounting for over 96% of the global market, with strong demand continuing to push up prices.

II. Trading Volume (Simultaneous Increase in Volume and Price)

Trading volume in the graphite sector remains high. Leading companies such as Penghui Energy and Sunwoda saw daily trading volumes exceeding 2 billion yuan, with net inflows from major investors exceeding 1.3 billion yuan. Both raw material and finished product trading volumes have increased simultaneously, indicating a recovery in market demand and providing volume support for price increases.

III. Technical Analysis (Clear Bullish Signals)

Graphite-related stocks show a MACD golden cross, short-term moving averages in a bullish alignment, and sustained volume growth, indicating a clear bullish pattern. This, combined with fundamental factors, strengthens expectations of price increases.

LINZHANG XINHUI CARBON CO.,LTD benefits from low inventory levels, surging demand, increased international influence, and strong volume support. Its short-term price increase logic for graphite is solid, making it a stock worth close attention.