Interesting the discussion around processing coke-based products into synthetic graphite.
'Whilst these factors have impacted the natural graphite market in recent months, Renascor does not consider the current situation to be sustainable. The current decrease in synthetic graphite pricing has occurred during a period of low power and coke feedstock costs, as well as low utilisation rates of Chinese graphitization capacity following significant capital investment in the Chinese synthetic graphite sector in 2022. This has led to aggressive pricing competition amongst Chinese synthetic producers. Renascor expects that, as utilisation rates increase and Chinese battery demand continues to grow, synthetic graphite pricing will increase, supporting higher prices for natural Graphite Concentrates.'
The dynamics of synthetic graphite is being played out before our eyes. Additionally, you have the recent shock of the Middle East conflict which has already pushed a surge in crude oil prices as supply concerns continue for how ever long it takes to resolve (if ever). So apart from the high ESG concerns, that is also a factor weighing on the minds of the Chinese.
On the other hand, since September SYR has confirmed (by debunking an AFR article) that it has been selling graphite concentrates to anode producers in short supply. But at what price and what quanity? The great thing about publicly-listed companies is that they are obligated to report figures and SYR Quarterly is due to release figures next Tuesday: Webinar announcement
If that figure comes in on par or much greater than expected, then it may highlight the desperation that is about to play out amongst the multinationals.
There are simply not many, if any, low-quartile-cost, shovel-and-finance-ready players but RNU.
FOMO remains with the anode players!
AIMO, DYOR, GLTA(Patient)H
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