Changing the Game I agree with Gorilla on the latest news from China.
China has controlled price and supply of graphite and continues to do so as they control 90% of what is out there for purchase.
China is playing the game they have been preparing for since Trump became the Republican candidate and surely since he became the president elect. I suggest the triggers for this Chinese announcement was the unexpected move by trump to call out Canada and Mexico with such high tariffs and of course the chips move of the Biden administration.
China has dropped the challenge to trump... make a comment on Chinese tariffs and we will respond with graphite constraint as it is now "under review."
good news for NGC is that trump loves a fight and a challenge and this will only cause graphite prices to rise either through supply constraints or tariffs. Pick your poison, but this has already changed the math.
now we wait to see how far China will go to push back on trump. Or will they simply allow Trump to impose the tariffs on them as he most likely will.
Lastly, as the only graphite producer in North America, how long do you thing the risk managers at the OEMs will wait before they decide to secure non Chinese related supply. And how much are they willing to pay.
and here we are at 10 cents. For not long I would say.