1. Do the Brazilians sell graphite made recarb for US$1,000 per tonne? No Brazil sells most if not all of their recarb in Brazil only and the price they sell at is closer to USD 500/ton. Keep in mine their is duty on imported carbon & graphite that make it more difficult for local companies to want to use imported recarb.
2. If not, what does it sell for currently? See above
3. If yes, why do you see there is no margin for selling recarb if Syrah's projected costs of production are so low? Syrah will have high container freight cost to major recarb markets such as Europe.
I assume the same for North America and for Asia they will be competing mostly with the low cost Chinese 99.5 % carbon low sulfur Graphitized Coke and even lower cost low sulfur blended carbons. Can Syrah still sell some small volume and make a profit Yes. However Syrah business plan is to sell extremely high volumes and to sell extremely high volume they will need extremely low market price.
4. Is the price of recarb correlated to oil and gas prices given it is typically derived from pet coke, a by-product of oil and gas production? No Pet coke is a scrap product so the value of Pet coke is base on supply vs. demand. If supply is grater then demand prices will decrease and if demand is greater then supply price will increase. Since Pet coke is scrap product it must be sold thus producers will make sure they sell out their capacity at any price.
5. Are we expecting a big fall in recarb prices given the fall in oil prices? See above
6. What kind of volume would you expect to sell at the expected selling price? You tell me what volume you are projecting to sell say in Europe? Base on the projected volume and what % of the expect volume makes up the European market share or European demand and what are the competing recarb and what will happen to the competing recarb prices when a new supply tries to take market share from competing recarb and how fast must Syrah displace the competing recarb will all factor in on Syrah expected price for Europe. All a can say is Syrah and its investors will have a difficult time giving Shareholders a return on investment selling recarb. I recommend they reduce their expected capacity and target none or extremely small volumes for this market application.
