GLOBAL GRAPHITE SNAPSHOT: Upward cost pressures support flake markets

By Jon Stibbs, Sybil Pan
Published: Thursday, 12 November 2020

Key data from the graphite pricing sessions in Asia and Europe for the week ended Thursday November 12.

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

Previous week's price Weekly % change

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

775

755

+2.6

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

480

460

+4.3

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

905

885

+2.3

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

770

760

+1.3

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

440

440

0

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

920

910

+1.1

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

2,200-2,400

2,200-2,400

0

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

250-300

250-300

0

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

335-410

335-410

0

China

  • Prices for the larger flake graphite grades - graphite flake, 94% C, +100 mesh, fob China (+194) and graphite flake, 94% C, +80% mesh, fob China (+894) - moved up amid increasing heating costs in the major production hub of Jixi city, Heilongjiang province, decreased inventory in the main trading hub of Qingdao city, and the stronger Chinese yuan.
  • The yuan was trading at 6.61 yuan to $1 on November 12, compared with 6.72 yuan to $1 on October 29, according to currency exchange website Oanda.com.
  • The small flake graphite market stayed flat despite the fluctuation in the currency exchange rate amid high inventory and slow demand from downstream markets.
  • The spherical graphite market was quiet, with demand expected to be stable for the rest of the year.

Europe

  • Supply-side costs and falling supply in China supported all grades of graphite flake, while the amorphous market was stable.
  • In addition to the costs referred to above, strongly climbing freight rates for the China/Europe route created additional support and were said to have added to the competitiveness of flake producers outside of China.
  • There were no indications of better demand, which remained weak and more focused on long-term contracts than the spot market.

Graphite flake premium calculator

The Value in Use (VIU) was updated to 4.8% on October 1 for the fourth quarter of 2020 from 5% in the third quarter.

Adjustment   This quarter's VIU  Previous quarter's VIU Quarterly change 
Carbon VIU in %  4.8  5  4

Graphite VIU Q42020

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