Syrah Resources (ASX:SYR) has jumped 19% in Friday arvo trades on around $5 million in turnover as the company appears to be the beneficiary of Trump’s latest threats.
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You already know that it’s a tariff, and this time, it’s Chinese graphite on the chopping block. For now, anyway.
Trump overnight said he wants to whack tariffs of 93.5% on Chinese graphite imports to the U.S., which would effectively prohibit U.S. companies from importing Chinese graphite – unless they want to pay double the price.
That, in turn, has left market punters wondering how likely it is that the U.S. might turn to other companies in other jurisdictions for supply – which has come as a small blessing for Syrah, trading sideways for the last twelve months.
Looking at weekly returns, Syrah was up +21% as at 2pm AEST Friday. But one ought to look at the year long chart to get some context: Syrah’s pretty familiar with momentum rising and falling once every few months.
If this was an ocean, you could say it has strong swell (Market Index)
The question now becomes how long this latest shtick from Trump can continue to buoy sentiment – and then, of course, whether or not he actually follows through with a 93.5% tariff.
To date, every major tariff threat we’ve had from the White House has eventually been altered, watered down, or more or less reversed completely. Sweeping tariffs for all nations were meant to kick in earlier this month, then just before the un-pause date, we got news that now August 1 is when tariffs descend.
Wall Street has stopped paying attention. So has the ASX200, which hit a new all-time high above 8,740pts intraday on Friday.
SYR last traded at 35cps in Week 29 heading into the weekend.
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