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I found something interesting explaining the drop in small flake graphite which might explain the drop in basket price and short term planned production cut at Syrah Resources.
Combustion engine car manufacturers in China have slashed their prices ahead of a new exhaust emissions law coming into force 1st of July. This, along with the removal of EV subsidies explains recent graphite prices. Looks like prices set to rise 1st july (or sooner if manufacturers start to stock pile again at todays prices)
https://www.fastmarkets.com/insights/chinese-auto-price-war-drags-down-battery-raw-materials-prices
https://www.yicaiglobal.com/news/20230510-02-china-extends-old-car-sales-period-to-years-end-despite-stricter-emission-standards-will-take-effect-in-july
On a separate note, did people see the graphite bang for buck chart out the other day from twitter user H00PZ? Little noticed Madagascar miner called Tirupati Graphite listed on the london stock exchange was a stand out case. Now producing about 27ktpa with a C1 cost below US$300 and a basket price over US$940. Plans to grow production to over 500ktpa and supply 8% of global graphite demand by 2030. Capex to bring online an extra 50ktpa contained graphite = $25-35m. Lowest capex and opex producer in the world and 14million tonnes of TCG resource with further upgrades to come.
https://twitter.com/MylesMcNulty/status/1656296516116520962?t=YtZI8LHAf94mSbrl9S319w&s=19
Ann: March 2023 Quarterly Activities Presentation, page-154
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Last
32.0¢ |
Change
-0.015(4.48%) |
Mkt cap ! $331.1M | |||
| Open | High | Low | Value | Volume |
| 33.0¢ | 33.5¢ | 32.0¢ | $2.426M | 7.491M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 11 | 868348 | 31.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 32.5¢ | 40000 | 1 |
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| Last trade - 16.10pm 08/07/2024 (20 minute delay) ? |
| SYR (ASX) Chart |