Unfortunately some bad news for Syrah, despite them cutting...

Unfortunately some bad news for Syrah, despite them cutting graphite supply to china from 50.000 tonnes last quarterly to 15.000 tonnes this quarterly, prices are still low and didn't recover.

I thought that by december we should see some price recovery, I was wrong, the reduction of EV sales in China due to the reduction of EV subsidies since june 2019 by the chinese government resulted in lower demand for batteries and hence for graphite. There is now lower supply of graphite into china but also lower demand and as a result prices didnt recover.

Just imagine if Syrah didnt cut its supply to china, things would have been much worse. The only chance now for syrah is to pray for some recovery of EV sales in Q1 2020, otherwise we may see 400 us$ per tonne prices again VS costs of 570 US$ per tonne which means an unprofitable/unsustainable business and more cash burn, in that case better go temporarily into care & maintenance and preserve cash. Time will tell.

GLOBAL GRAPHITE SNAPSHOT: Low demand balances tightening supply of flake

Thursday, 12 December 2019

Key data from the graphite pricing sessions in Asia and Europe for the week ending on Thursday December 12.

GLOBAL GRAPHITE SNAPSHOT: Large stocks, weak demand offset tightening supply in China, Europe

Thursday, 05 December 2019

Key data from the graphite pricing sessions in Asia and Europe for the week ending on Thursday December 5.