European graphite prices rise in early 2018 contracts European graphite prices rise in early 2018 contracts
By DAVIDE GHILOTTI
Published: Friday, 19 January 2018
Prices for +mesh sizes high-purity flake graphite on the European market have surged in Q1 and H1 contracts, but some suppliers are keen not to commit long-term amid continuing price volatility.
The flake graphite market in Europe has started 2018 on an upward trend, as demand for some grades has led prices for the first quarter and first half of the year to reach new highs, according to market participants.
Following a rapid appreciation in the Chinese spot market for flake graphite in the second half of last year, prices for material of non-Chinese origins gradually followed the uptrend.
As Industrial Minerals reported last month, in some unusual cases the rise in Chinese spot prices brought the cost of China-origin material above the levels seen on the European market from non-Chinese suppliers, due to Asian spot prices appreciating faster than those elsewhere. The cases involved a few grades of high-purity refractory-sized flake.
While the trend toward higher prices has been widespread so far, it has not affected all grades equally, with a few specific grades in high demand and under particular pressure, while others have shown more stability.
Purity levels between 94% C and 97% C have been requested more often by refractories buyers, especially + mesh sizes, such as +80 and +100 -80 sizes.
Similarly, the price for higher-purity material for smaller markets, such as expandable graphite, have also been under pressure due to availability falling below demand levels.
"High-purity grades are the ones that underwent the strictest limitations in Chinese operations, hence those whose output was [reduced] the most," an Asia-based distributor told Industrial Minerals. "If you add demand patterns to that, you have grades such as +894 or +197 that are now extremely pricey, because that’s where output is low and demand is high."
As of mid-January, the price appreciation of flake grades in Europe has brought the local market back to higher levels compared with China, after a short but anomalous period that Industrial Minerals recorded last month.
The price of flake graphite, 94-97% C, +80 mesh size, has increased to $1,000-1,300 per tonne cif Europe from a previous range of $925-1,070 per tonne.
This material group is where market participants on both sides of the supply chain – suppliers as well as buyers – have reported the strongest price pressure, confirming a trend that Industrial Minerals has reported a few times in recent months.
"Most of my demand for refractory uses is in 94% and 95% [C], and + mesh [sizes]," a second European trader said. "But offers can vary widely at the moment, both from Chinese distributors and from non-Chinese suppliers."
The wide range of prices assessed between the low and high ends reflects the currently tight situation.
Numerous suppliers in conversation with Industrial Minerals have reported significant differences in their offer prices and their latest sales, contributing to a wider price range for this material.
The price of flake graphite, 94-97% C, +100 -80 mesh size, has also risen, to $1,040-1,230 per tonne cif Europe.
Flake graphite, 94-97% C, -100 mesh size, meanwhile, is priced $790-940 per tonne cif Europe.
This latter material group has so far shown less of the upward drive seen in the previous two, owing to lower demand overall, according to suppliers and traders.
"We haven’t done much of that grade in the past couple of years, as most inquiries focus on other sizes," one European supplier said.
The latest price rises reflect contracts set for the first quarter of 2018 and, in some cases, the first half of the year.
While suppliers are adamant that demand is strong, some are not keen to commit to long-term agreements, because they want to remain open to potential price changes in case there is further volatility in the market.
"We haven’t committed beyond the first quarter yet," a second European supplier said. "Our current price levels are only for [January-March]. We want to look at the market later and, potentially, adjust our terms for the following quarters."
Due to low availability of some 94-97% C material, some customers were trying to source the closest material they could find. This has triggered higher demand for 92% C volumes, according to one supplier.
Lower-purity material sold to the European market, however, avoided the bulk of the price uptrend. Industrial Minerals is currently assessing the prices for grades between 85% C and 90% C as follows:
Grade
Price – low end
Price – high end
Graphite Flake, 85-87% C, +100 Mesh -80 Mesh, fcl, cif, Europe [US$ per tonne]
400
450
Graphite Flake, 90% C, +100 Mesh -80 Mesh, cif, Europe [US$ per tonne]
550
620
Graphite Flake, 90% C, +80 Mesh, cif, Europe [US$ per tonne]
600
650
Graphite Flake, 90% C, -100 Mesh, fcl, cif, Europe [US$ per tonne]
500
550
Amorphous holds still
Amorphous graphite, meanwhile, has not seen the price drives prompted by the shortage of flake material out of China, and its price levels have remained largely stable compared with previous benchmarks.
"I have seen the increase in flake demand so far, and I expect to see further growth in that. But that said, [the price of] amorphous graphite is not moving. [And] it’s not going anywhere at the moment [in terms of demand]," one supplier told Industrial Minerals. "Because of that, prices are stable."
Amorphous graphite, 80-85% C, -200 mesh size, is currently priced at $400-430 per tonne cif Europe.
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graphite refractories