GLOBAL GRAPHITE SNAPSHOT: Weak consumption in Europe weighs on flake markets

By Jon Stibbs
Published: Thursday, 10 September 2020

Key data from the graphite pricing sessions in Asia and Europe for the week ended Thursday September 10.

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

Previous week's price Weekly % change

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

750

760

-1.3

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

455

460

-1.1

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

880

885

-0.6

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

750

750

0

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

430

430

0

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

900

900

0

Graphite Spherical, 99.95% C, 15 microns, fob China

2,200-2,350

2,200-2,350

0

Graphite Amorphous, 80% C, -200 mesh, fob China

250-300

250-300

0

Graphite Amorphous, 80-85% C, -200 mesh, cif Europe

330-405

320-395

+2.8


Europe

  • There were modest falls in all flake markets assessed by Fastmarkets in response to a weaker than expected recovery in consumption after the end of the summer lull.
  • There were, however, reports of increased numbers of inquiries this week with some buyers returning to the market in expectation of higher prices for Chinese material, following the rise in value of the yuan again the US dollar.
  • Amorphous producers and traders reported increased demand and higher prices for the first time since May 28.

China

  • The market for graphite flake, 94% C, +80% mesh (+894), stayed stable after ticking up for two consecutive weeks, on a supply shortage. Sellers held their prices firm despite a quiet spot market.
  • The market for graphite flake, 94% C, -100% mesh (-194) remained unchanged, with very limited liquidity. But prices in the domestic markets ticked down slightly amid sluggish demand from the refractories sector.
  • The market for graphite flake, 94% C, +100% mesh (+194) was stable, with sellers reporting a relatively better supply situation compared with that of +894.
  • The amorphous graphite market stayed stable. Production has been slashed to adapt to the bearish market conditions.
  • Sellers of spherical graphite reported stable recovery in demand from South Korea and Japan.


Graphite flake premium calculator

The Value in Use (VIU) was updated to 5.0% on July 1 for the third quarter of 2020 from 4.7% in the second quarter.

Adjustment   This quarter's VIU  Previous quarter's VIU Quarterly change 
Carbon VIU in %  5.0  4.7  +6.4

VIU Q3 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 a 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% material or 21% more expensive than 94% carbon.

For more information, 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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