Graphite shortages caused by China's export controls perfect...

Graphite shortages caused by China's export controls perfect timing for WKT 's mine commissioning and immanent production .

January 24, 2024
By Sybil Pan
China’s graphite exports plunge in December after introduction of export controls

Shipments had surged in November, but the new export controls meant total exports of flake graphite (HS code: 25041010) dropped by 93.93% on a monthly basis to 1,427 tonnes in December from 23,502 tonnes a month earlier, while exports of spherical graphite (HS code: 25041091) slumped by 92.22% to 948 tonnes in the same comparison, down from 12,186 tonnes in November, according to China customs data.
Exports to major destinations also slowed notably in December. Flake graphite volumes to Japan fell from 6,138 tonnes in November to zero in December, while exports to the United States fell from 511 tonnes in November to zero in December.
Total exports of spherical graphite to Japan and the US fell to zero in December, with exports to Japan at 2,238 tonnes and exports to the US at 280 tonnes in November.


The main driver behind the massive slump in export volumes was probably a rush to buy in November, prior to the introduction of the export control policy on December 1, along with the long review time for export license applications, sources told Fastmarkets.
“Most exporters in China started to apply for export licenses in December [and] it took some time for suppliers to learn about the regulations and get files right. Although some have got licenses since the second half of December, most are still waiting,” a graphite trader said. “Fortunately, our clients have prepared for that and [already have] inventory for the first quarter.”
A second graphite trader said that the high shipment volumes in November, slower demand and export licenses controls meant that traffic would be limited for the time being.
“We do not expect [to see] too many shipments before the end of February.,” the second trader said.
Market participants said there had been no significant impact felt in the international graphite markets, because of slow demand globally, but added that uncertainty remained over how the export controls will be implemented and whether certain destinations will be affected more than others in the future.
The export controls led to a limited increase in both flake graphite and spherical graphite prices on an FOB China basis in the final two months of 2023.