Global demand & supply

Congrats to those have been making profit on TON

The Graphite sector is good and has great potential, but long term price will be determined by simple Demand Vs Supply.

I think Graphite is very similar to rare earth element (REE) in various aspects including dominated supply from China, small global consumption, and vast global reserve.

Brazil has 58Mt graphite reserves,
China has 55Mt graphite reserves, produced around 68% of the global graphite, 0.81Mt/year.

Global graphite production was 1.2Mt/year for 2013.

Some positives:

1. China might produce majority low flake nature graphite,
2. Increasing demand from other uses such as electric car. Tesla Motors expansion would drive graphite demand by more than 30% in 2020. (would be 1.6Mt/year globally).

The following data were published in February 2014. Recent discoveries of SYR, TON and other graphite companies were not taken into account.



(Source: U.S. Geological Survey, Mineral Commodity Summaries, February 2014)
http://minerals.usgs.gov/minerals/pubs/commodity/graphite/mcs-2014-graph.pdf