GLOBAL GRAPHITE SNAPSHOT: 194 cif Europe price rises, coronavirus heightens seasonal shortage

By Jon Stibbs, Sybil Pan
Published: Thursday, 06 February 2020

Key data from the graphite pricing sessions in Asia and Europe for the week ended Thursday February 6.

Assessment 
(in $ per tonne)
This week's price

Previous week's price Weekly % change

Graphite flake, 94% C, +100 mesh, cif Europe


650

640

+1.6

Graphite flake, 94% C, -100 mesh, cif Europe


470

470

0

Graphite flake, 94% C, +80 mesh, cif Europe


820

820

0

Graphite Flake, 94% C, +100 mesh, fob China 


690

690

0

Graphite Flake, 94% C, -100 mesh, fob China


540

540

0

Graphite Flake, 94% C, +80% mesh, fob China


820

820

0

Graphite Spherical, 99.95% C, 15 microns


2,500-2,600

2,500-2,600

0

Graphite Amorphous, 80% C, -200 mesh


320-340

320-340

0

Graphite Amorphous, 80-85% C, -200 mesh, FCL


330-395

330-395

0


China

  • The graphite markets were quiet, mainly due to the extension of the Chinese new year holiday break to February 10 because of the coronavirus outbreak.
  • Supply of 94% C, +100 mesh (+194), fob China, flake remained tight due to the seasonal halt in Heilongjiang province and the operational closures resulting from environmental regulations, which remain in place until the end of the Chinese new year holiday.
  • Amorphous graphite producers waited to make offers and return to normal production until after the coronavirus outbreak. They indicated prices could tick up after the closures because inventories will have been run down in the meantime.

Europe

  • Seasonal shutdowns exacerbated supply issues caused by the coronavirus to tighten supply of +194 material, which has resulted in higher prices.
  • The reductions in supply of other grades of graphite were reported to ease the over-supply in the market rather than to increase prices in the short term.
  • Market participants found some amorphous producers in China were reluctant to commit to competitive offers they might not be able to fulfil, because of the logistical problems connected to coronavirus.

The VIU was updated on January 2 for the first quarter of 2020 to 5.9% from 6.7% in the fourth quarter of 2019.

Adjustment  This quarter's VIU Previous quarter's VIU Quarterly change

Carbon VIU in %

5.9 6.7 -0.8

 VIU q1 2020

The Carbon-VIU measures, in percentage terms, the price value of one extra % of carbon content as seen in the market.

The VIU is calculated using statistical methods and the large amount of prices and data collected by Fastmarkets. The VIU shown is the value implied by the market and not an in-house assessment.

An example of what the Carbon-VIU means practically: A published Carbon-VIU of 7% means that material with 95% carbon content is priced by the market, on average, 7% more expensive than 94% carbon content material, assuming other factors are equal.

Likewise, it means that 96% carbon content material would be 7% more expensive than 95% material and that 97% carbon content material would be 7% more expensive than 96%, or 21% more expensive than 94% carbon.

For more information or to provide feedback on this graphite snapshot or if you would like to contribute to the price discovery process, please contact Jon Stibbs or Sybil Pan by email at:  pricing@indmin.com. Please add the subject heading "FAO: Jon Stibbs/Sybil Pan – graphite."



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