Large flake graphite prices settle at new equilibrium
Published: Thursday, 27 February 2014
After 18 months of stagnation, +80 mesh, 94-97% C flake graphite prices settle, in real terms, at new post-global recession high
Prices for large flake graphite have settled, in both nominal
and real terms, significantly higher than the pre-global
IM Data has calculated that a tonne of +80 mesh, 94-97% C,
large flake graphite (CIF, Europe) is 22% higher than in 2008
and 52% higher today than it was in 2006, when the volatility
that has defined the industry over the last eight years
Sellers have battled hard to retain the value created as
graphite prices boomed between 2010 and 2011, when large flake
prices rocketed to $2,500/tonne on the back of a strong rebound
in demand which suppliers were unable to cater for in the
The price has since been eroded down by almost 50% to
$1,275/tonne today, however this value remains higher than the
2006 average of $836/tonne and the 2008 average of $1,044/tonne
(in real terms).
Larger flake rises likely
The second half of this year is expected to see a slight
recovery in flake graphite prices.
The more positive price picture is likely to be outside of
China, with greater demand expected in the European, US and
Brazilian markets as their steel industries expand; while
China's over production of steel in 2013 is expected prove a
major burden that will hit demand for all related minerals and
metals this year.
Although this is likely to surpress Chinese prices of lower
quality, medium flake graphite, the graphite plant closures in
Shandong are expected to have positive price implications for
larger flake material, as this is Chinas primary source
of +80 mesh product.
Should demand rebound outside of China and these supply
restrictions continue, prices are likely to rise.
Large flake graphite a new equilibrium
2006 price 2006 in
real terms Todays
price % difference to
2008 price 2008 in real
terms Todays price
% difference to real terms