This is why China are currently importing from the likes of Madagascar.
They have an estimated 70,000t per annum expandable graphite market increasing exponentially with bromine having been banned.
If they are only able to produce 25,000t per annum that means they are currently importing roughly 45,000t per annum.
Countries do not import 60% of their domestic needs if they can avoid it. This 60% shortfall is only going to grow larger as the bromine banning takes effect on the materials industry.
I'm still content to hold for another 5 years & see where this goes, at the very least i'll hold 50% of my holding post commissioning of the Ancuabe mine on the stipulation we secure financing to build it.
I've been building a strong holding in anticipation I may decide to split my holding over both a medium & long term strategy.
"Traditionally, Shandong Province was the center of graphite mining in China but its production is declining due to the depletion of ore reserves and stricter enforcement of environmental regulations. As Shandong was the main source of large and extra large flake graphite, production of these grades is also declining. Mining has transitioned to Heilongjiang Province and it is now the major producer. There are two main producing areas in Heilongjiang, Jixi/Mashan and Luobei, both of which produce mainly small flake.
The market for large and XL flake graphite is much more robust, in part because of declining Shandong production but also because expandable graphite is the fastest growing market along with LiBs. Expandable graphite is principally made from large/XL flake. It is used in thermal management for consumer electronics and many industrial applications including heat and corrosion resistant gaskets and fire retardants. The latter market is expected to grow rapidly as the use of brominated flame retardants is is phased out or banned. Fuel cells and flow batteries are also new and potentially large markets for expandable graphite. Also, the steel industry is a significant user of large flake and its recovery will put additional pressure on large flake prices.
Annual Chinese demand for expandable graphite is approximately 70,000 tonnes. China only produces 25,000tpa of +50 mesh flake and the balance is made up of less desirable +80 mesh flake. The demand for expandable graphite with very high expansion rates is growing even more rapidly and this requires +32 mesh flake graphite. There is currently a shortage of both +50 mesh and +32 mesh material in China as there is in the rest of Asia as well as Europe. China has now started to import +50 mesh concentrates from Madagascar.
In the short to medium term the graphite opportunity is clearly in the large/XL flake markets which are high price and high margin with supply shortages. Longer term, new western sources of small flake production will be required to meet the expected growth in the EV/LiB markets and provide security of supply."
