Graphite Industry and Price Update
The following is an update from Benchmark Minerals Intelligence.
- Flake prices stable with limited market activity over Chinese New Year
- African flake supplies continue to displace Chinese domestic producers; Mozambique imports for January equal 20% of China’s total 2018 imports
- China exports record volumes of uncoated spherical graphite in January as Japanese and Korean orders strengthen
- BYD begins construction at its new 20 GWh facility as CATL signs 56 GWh deal with Honda; AESC and Linkdata commit to Jiangsu expansions
- Development stage companies announce major milestones with permits for Next Source Materials and Black Rock Mining; Nouveau Monde signs 25,000 tpa flake offtake with Traxys Group
Flake Graphite Price Commentary:
According to Benchmark Minerals Intelligence:
Limited market activity following the Chinese New Year saw flake graphite prices stabilise within existing ranges in February.
Although pressures remain in the domestic market as Chinese suppliers seek to compete with growing low-cost imports from Africa, FOB prices out of China have shown little response to the seasonal slowdown in production.
The lingering effects of the previous year’s environmental restrictions on production mean flake prices still remain higher than Q1 2018 on average, particularly for large flake grades.