IMO any perceived volatility is nothing more than sector sentiment over the reality of true growth.
When DC was asked what’s causing volatility in the graphite market? His answer was ‘uneven growth’ and ‘uncertainty over how quickly new demand will emerge’.
The fundamentals for graphite hasn’t changed for most part of last year when the price had dropped to the break-even levels that China is selling. Therefore, its unsustainable. The price pendulum is still hanging at the bottom and can only swing to the upside because the trend towards exChina sources of graphite is certain. Globally governments are driving it whether it’s the IRA, UE Green Deal or Madeleine King swanning about in Japan and ROK this week to promote the Australian advantages. Plus, ESG investment community including super funds can also see the value.
My key statement from DC was that he thinks China will soon become an importer of natural graphite material again as it looks to keep up with its own demand.
AIMO, DYOR, GLTA(patient)H
RNU Price at posting:
8.1¢ Sentiment: None Disclosure: Held
