VXL (ASX) Graphite price outlook

Originally posted by m0ngy ↑

Thanks for a somewhat reasoned and polite response asheds. Against my carefully referenced argument that China is increasing its graphite output (see previous posts), i note that you simply declare that the opposite is the case without producing any data at all. I also refer you to my referenced post describing where the additional Chinese exports are going, including to Japan for high tech applications so China is supplying the technical grade product. While there is an emerging market in new tech this should not be exaggerated and the high tech graphite prices are in decline, as quoted from the TRU Group Inc paper:
"the medium trend in the outlook through 2015 is negative for most graphite product prices - including prices for (coated) natural spherical flake graphite. Longer term 2020 prices will trend moderately lower and stabilize as a few new high-tech western companies begin production. These lower graphite price levels are heading to the new norm and the price premium on "battery grade" over technical grade (flake-size differentials) is narrowing as predicted.
http://trugroup.com/graphite-graphene-conference.shtml

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"battery grade" pricing is driven by synthetics, not some spruiker, natural graphite is only just developing in this area, and it's but one of several high grade/high value segments.

http://resourceinvestingnews.com/50...e-asbury-carbons-stephen-riddle-explains.html

"That being said, if natural graphite wants to compete for this market, it is going to have to prove to high-end battery manufacturers that it is a consistent material and that over time it can make a very good-quality anode. Natural graphite will be lower cost than synthetic, so if they can prove its consistency, then on an equal price basis, natural graphite will have a cost advantage"

http://www.techmetalsresearch.com/2014/03/going-natural-the-solution-to-teslas-graphite-problem/

"Nonetheless, synthetic graphite is twice the cost of battery-grade natural-flake graphite, and is typically derived from petroleum coke, which relies on crude oil as its source. Tesla has a stated goal of reducing the unit cost of battery production by a minimum of 30% between now and the initial ramp-up of the Model E in 2017. Natural flake graphite stands to play a significant role in reducing the unit costs of battery production and in reducing the environmental footprint associated with production, if acid-based purification steps can be avoided."