Spherical graphite price underpinned by steady demand 

It is difficult to completely substitute spherical graphite due to its relative better lithium-storage capacity as a lithium-ion battery anode material. This means graphite demand from the downstream battery sector and spot prices are like to remain stable. 

The graphite spherical 99.95% C, 15 microns, fob China, priceat $2,800-2,900 per tonne on Thursday, unchanged since May 24, 2018. 

Spherical graphite is traditionally used to produce graphite anode material, made from flake graphite and used in lithium-ion batteries, due to its excellent theoretical lithium-storage capacity and electrical conductivity and better crystallinity, according to market sources. Spherical graphite is mostly used in carbon anodes despite the emergence of silicon-based anodes as a potential substitute. 

On the supply side, the overhanging threat of restricted production due to environmental concerns will support prices in the near term,  China is a major spherical graphite supplier. Environmental inspections in production hubs, such as Shandong and Heilongjiang provinces, remain the key supply driver underpinning spherical graphite prices in the second quarter of this year.

But flake graphite prices are under pressure 
The flake graphite price has been under pressure on weak demand in the downstream refractory industry despite healthy demand from the emerging battery anode sector. 

Demand for flake graphite from the anode sector has been supported by rising anode production capacity in China. Shanshan Technology, one large anode materials producer in China, is building the first phase of a lithium-ion anode line in Inner Mongolia with capacity to produce 40,000 tonnes per year of anode. The line will start operations in the third quarter of this year, Xie Qiusheng, senior engineer from the Shanghai Shanshan said.
Yet demand from the traditional downstream consumer - aluminum-magnesium-carbon (al-mg-c) brick used as a refractory material - is falling due to reduced output of al-mg-c brick in China following environmental scrutiny. This drop in demand has put flake graphite prices under downward pressure. 

According to data from China’s Association of Refractories, China produced around 260,600 tonnes of magnesium-brick in the first five months of 2019, down by 27.56% from the corresponding period of 2018. 

The graphite flake 94% C, -100 mesh, fob China price averaged $623 per tonne so far this year, down by 5% from $655 per tonne in the corresponding period of last year. 

Consumers' production lines lead to preference for natural graphite, synthetic graphite 

The debate on whether natural or synthetic graphite performs better in lithium-ion battery anodes raged on at the conference. 

“In 2012, needle-coke started to be [produced into synthetic graphite to be] used in battery anode, and the application has been expanding quickly since 2016 because needle-coke is easier to graphitize at higher temperatures,” Peng Li, chief engineer from Shandong Yida New Materials, told delegates during a panel discussion at the conference. Needle-coke has attracted the attention of the lithium-ion industry because of its better electrical conductivity and longer cycle lifetime due to its graphited microcrystalline structure and needle texture. 


Ultimately, downstream consumers’ buying habits and their production lines will determine which will emerge as the market leader, a China-based producer told Fastmarkets on the sidelines of the conference said, citing both synthetic and natural graphite as being used by leading battery producers in the world. 

• [Editor:admin]