Hi Sparecash,
You claim China has a limited supply of large flake, yet WKT's two Chinese term sheets, showed these prospective clients wanted to purchase large and jumbo flakes. It seems pretty odd that they are no longer interested in purchasing 75% of WKT's planned production,
Anyway, if you really wanted to work out the demand for large flake you could look at SYR,
In 2022, they produced 164k tonnes of graphite, 64% of their production was shipped to China, the average price paid for their product was only $661 CIF,
A simple calculation, 164kt x $661 x 64% = this is nearly $70mil in graphite sales into China. which isn't far off the total amount China imported into the country.
Considering this company is prodominently small flake producers (based on the low graphite price), this indicates the demand in China is mainly for battery/refractory graphite. not the large/jumbo's you claim.
Source :
https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02649147Anyway, I am sure many are starting to wonder what happened to these two companies that wanted 75% of WKT planned production, If I was in charge of Wogen's sales and marketing team, I would be focusing on these two offtakes that WKT had secured. Anyway, there is the possibility that these agreements have lapsed and that is why WKT is looking for new customers
As your image showed above, the graphite market is oversupplied (not good for WKT) and you need to wait 3-4 years for the shortfall in supply to be seen.
I am sure you could have seen this coming with the failure to lock in the 2 Chinese term sheets, didn't we have the pumpers say a term sheet was virtually the same as a binding offtake agreement? Wasn't that false and misleading information.
