Editor: Adam Zhang
Extremely limited availability of +80 mesh high-purity flake graphite in China has led to another increase in fob prices for export against more stable offers in Europe.
The latest hike in spot prices of some +mesh graphite grades from China have brought China-origin material above price levels on offer on the European market.
While the consensus across the graphite industry has generally been of cheaper prices from China compared with more expensive material from other origins delivered to Europe, the tables have turned for at least one grade on the back of high demand and limited supply.
According to the latest Industrial Minerals assessment, Chinese flake graphite, 94-97% C, +80 mesh has appreciated further over the past week, and is now trading at $1,050-1,210 per tonne fob China. The grade has risen by $50 compared with previous weeks.
In comparison, flake graphite, 94-97% C, +80 mesh available on the European market on a delivered EU port basis is currently stable at $925-1,070 per tonne cif Europe.
This apparent discrepancy of the market points to a situation in which Chinese prices for this material are rising much faster than prices for the same material supplied by non-Chinese producers. It should be added that all other graphite grades Industrial Minerals assesses have not followed the same pattern, and have remained unchanged.
Production of graphite in Chinese producing areas has been severely curtailed by environmental inspections on processing facilities. +Mesh sizes have been particularly affected, as they require acid-based processing which is highly polluting.
With the winter approaching, mining operations in China will be reduced further or stopped. According to local sources, some mines in Luobei have already been closed for the winter.
"Production in main mining areas will either stop for the winter, or in late January due to [Chinese New Year] holidays," another Chinese-based seller added.
Additionally, demand for high-purity, +mesh sizes has been high from the refractory end markets, where consumers are already facing shortages and stellar prices for other raw materials, namely bauxite, alumina and magnesia.
One European-based supplier told Industrial Minerals that availability of +80 mesh material is "very thin on the ground", adding: "It is clear why Chinese sellers are pushing prices for that grade in particular. Lower purity or minus mesh sizes have not gone down the same way."
Other Chinese prices have meanwhile remained firm on the levels reached in previous weeks, which continue to be below European prices.
Chinese flake graphite, 94-97% C, +100 -80 mesh, is currently trading at $865-1,040 per tonne fob China, while 94-97% C, -100 mesh is at $655-790 per tonne fob China.
On the European market, this compares with $865-1,040 per tonne cif Europe for flake graphite, 94-97% C, +100 -80 mesh, and $785-940 for 94-97% C, -100 mesh cif Europe.
For purity levels below 94%, including 85-87% C and 90% C, the market has shown more stability on prices, both in China and in Europe.