GLOBAL GRAPHITE SNAPSHOT: China production restarting, market prices hold

By Davide Ghilotti, Sybil Pan
Published: Friday, 21 February 2020

Key data from the graphite pricing sessions in Asia and Europe for the week ended Thursday February 20.

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

Previous week's price Weekly % change

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


650

650

0

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

  • Operations at producers of flake and spherical graphite in Qingdao were recovering gradually, with work at reduced rates with partial workforces to help contain the spread of the novel coronavirus infection.
  • Logistics for the seaborne market in Qingdao were getting better thanks to its advantage of being a port city. According to market sources, shipments to other countries might be delayed due to the internal restrictions on transporting material from places far from Qingdao, which may affect the volumes loaded onto any particular ship.
  • The amorphous graphite market was stable over the past week because producers were fulfilling contracts signed before the Chinese new year holiday. The amorphous material delivered was taken from existing inventory. It was reported that mining would not be allowed until March 2 in Hunan province, the production hub for amorphous graphite in China. Given that workers from outside Hunan will need to be quarantined for the virus incubation period of 14 days, normal operations could be affected, threatening the supply of material, according to market sources.

Europe

  • Participants in the European market were looking to China to assess whether the disruptions to production and shipments related to the coronavirus outbreak would affect graphite availability from the country.
  • There were some suggestions that the price of +100 mesh material was appreciating, although this was not strongly supported by concluded transactions.
  • Market prices remained at existing levels on limited trading, while sources including some sellers and distributors said that more inquiries had been reaching them than in recent months.
The VIU was updated on January 2 for the first quarter 2020 to 5.9% from 6.7% in the fourth quarter 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."



More like this