Graphite Prices Current graphite prices US$/tonne (94-97%C)
XL flake $1,950/t (+50 mesh)
Large flake 1,200/t (+80 mesh)
Medium flake $1,000/t (+100 to -80 mesh)
Small flake $850/t (-100 mesh)
Graphite prices were up 30 to 40 per cent in the in the second half of 2017 due to an improving steel industry, environmental related production problems in China and continued strong demand growth from the lithium ion battery industry. While still early, this is the first real sign that battery demand is finally doing for graphite prices what it has already done for lithium and cobalt. Prices for large flake graphite are now up to $1,200/t from US$750 last year. This is still well below the 2012 peak of US$2,800/t which was entirely due to the commodity super cycle and strong steel demand. Batteries were then a small part of the market. Batteries are now approximately 25 per cent of the market and are growing rapidly. With steel demand also recovering and production issues in China, the supply/demand picture for graphite is very favourable.
Chinese production of large and XL flake graphite is declining as traditional mining areas in Shandong Province are depleted or shut down for environmental reasons. At the same time, industrial demand for the larger flake sizes is growing strongly and shortages are reported. The steel industry is also recovering. As a result, the outlook for higher large and XL fake prices is very positive.