Threat of over-supply in fine graphite flake remains despite Syrah’s suspension
Published: Tuesday, 04 August 2020
When Syrah Resources halted production of graphite flake in March this year, the move was expected to support fine flake prices. But the damping effect of the Covid-19 pandemic on economic activity meant that prices fell further than expected, and increased supply could overwhelm any recovery in demand in the short to medium term.
Australia-based Syrah Resources suspended production from its Balama site in
Mozambique from March 28, having already abandoned its
production goal for 2020 of 120,000-150,000 tonnes.
At the time the company halted output, the market for fine
flake was over-supplied. Fastmarkets assessed the price of
graphite flake, 94% C,...