Why natural graphite has increased sharply since oct 2021?

Throughout October, natural graphite companies were deeply affected by power restrictions, and output was greatly affected, leading to an increase in market prices and an imbalance between market supply and demand. As early as before the National Day, Heilongjiang Jixi Graphite Association issued a price increase letter. The production capacity of graphite production enterprises in the jurisdiction was reduced by the national power restriction. Due to the sharp increase in electricity, labor, and logistics costs, the cost of graphite products eventually increased significantly, and the genuine product was temporarily increased. The price of natural graphite is 500 yuan/ton. At the end of October, the market price of natural graphite had to be raised by nearly 500 yuan/ton again. Take the quotation of -195 flake graphite as an example. It was 3,500 yuan/ton on August 30, 3,900 yuan/ton on October 21, and 4500 yuan/ton on November 22.

At present, most natural graphite companies are out of stock and unable to quote prices. At present, they are basically executing previous orders. In addition to the impact of power rationing, the environmental protection team also does not regularly come to check, so the pressure to start construction is very high. For example, the production capacity in Luobei area was less than 1/3 of the original for a few days after the power cut. The supply side has suddenly decreased, but the end market has not decreased. The entire natural graphite is in a serious state of short supply, and there is no specific time when the problem of difficulty in starting work can be alleviated.


Post time: Nov-22-2021