The growing demand for spherical graphite has injected life into
natural graphite supply chain development in the rest-of-world (ROW).
The focus for developers is now to produce the highest ratio of fine to
medium-size flake, most suited for spherical graphite.
The graph shows China: Average value of graphite and carbon electrode
exports, suitable for use in furnaces ($/t) (Source: Global Trade
Tracker)
China continues to dominate graphite production and demand. Almost
all stages of the lithium-ion battery manufacturing chain are focussed
on China and China is by far the largest and most rapidly growing market
for lithium-ion batteries.
In the electrode industry, China is on the brink of a rapid shift to
EAF steel production. Just 6% of China’s steel is currently produced in
EAF, way below the global average of 25%.
Roskill’s assessment is that “high synthetic graphite prices in 2018
are the result of a perfect storm of conditions in China. Firstly,
environmental plant closures in the raw material coal needle coke
industry hampered the production of graphite electrodes. At the same
time, consumption of graphite electrodes in electric arc furnaces (EAFs)
began to rise as the Chinese government took steps to halt production
of poor quality induction furnace steel.
Roskill’s Natural and Synthetic Graphite: Global Industry, Markets
and Outlook to 2027 report was published in June 2018 and details
natural and synthetic graphite production, consumption and market
trends.