in * today Graphite prices ‘the highest they have been for many years’: RoskillIt’s not just lithium going stratospheric. Chinese graphite prices continue to rise as producers contend with a ‘perfect storm’ of increasing electricity costs and supply disruption caused by limits on energy consumption and shipping constraints, Roskill says. “Battery grades are particularly affected as both the manufacture of synthetic graphite and the processing of spherical graphite from natural flake are known for their high levels of energy consumption,” Roskill says. “Demand is growing rapidly for both natural and synthetic graphite in batteries as the EV sector recovers quickly from the pandemic, compounding issues of reduced supply.
“Prices could rise higher in Q4 if producers aren’t able to build up stocks now, ahead of typical winter closures.
”Graphite shipments also continue to be impacted by limited access to containers and vessels, adding to the problem.
Last week, Syrah Resources (ASX:SYR) reported Q3 production from Mozambique had been constrained by disruption in the global container shipping market. The company reported its production in Mozambique as 25kt in Q3, down from 29kt in Q2.Prior to COVID-19, Syrah was the largest producer ex-China, and it is looking to regain market share following reopening of the ‘Balama’ mine in Q1. “Total output for 2021 is likely to rival the next-largest ex-China producer, National de Grafite in Brazil,” Roskill says. “Syrah Resources is expected to continue increasing output into Q4, having reported 50kt of natural graphite sales orders in Q3.”The $623m market cap stock is up 24% to $1.24 per share in 2021 — well below the $4.69 per share peak in early 2018.
Also battery metals sold there project in Mozambique this year for 10million dollars after spending all that money.
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