For the Quarter Ending September 2024
North America
In Q3 2024, the North American Graphite market experienced a notable decline in prices, with the USA showcasing the most significant fluctuations. Various factors influenced this downward trend. High supply levels, driven by stable domestic production and increased imports, created an imbalance with low demand across sectors like construction and manufacturing. Reduced consumer interest, economic uncertainty, and project delays in construction led to subdued demand.
The USA also faced challenges from weak industrial activity and declining auto sales, impacting graphite consumption. Additionally, global shipping disruptions and decreased freight prices affected market dynamics, contributing to the overall price reduction. Despite disruptions like plant shutdowns, the pricing environment remained negative, with a consistent decrease observed throughout the quarter.
Seasonal fluctuations and correlation in price changes highlighted a downward trajectory, with a notable 5% change from the previous quarter. The quarter-ending price of USD 1054/MT for Graphite Flakes (94%, -100 mesh) CFR Houston in the USA reflected this prevailing decreasing sentiment.
APAC
In Q3 2024, the APAC region witnessed a significant decrease in Graphite prices, with China experiencing the most notable price changes. Several factors influenced this market downturn. Firstly, a surplus in supply, driven by expansions in manufacturing capacities and subdued demand across various industries, created an imbalance. The construction sector faced challenges, while the automotive industry saw declines in sales, impacting graphite demand negatively. Additionally, economic challenges and low consumer sentiment added to the downward pressure on prices. In China specifically, the market experienced a substantial -13% price drop compared to the previous quarter. The second half of the quarter mirrored this decline, indicating a consistent negative trend. The price of Graphite Flakes (94%, -100 mesh) FOB Shanghai concluded at USD 684/MT, highlighting the persistently decreasing sentiment in the pricing environment. Despite no observed plant shutdowns, the market remained bearish, with prices continuing to face downward pressure due to high supply and low demand, signaling a challenging period for the Graphite industry in the region.
Europe
In Q3 2024, the European Graphite market encountered a challenging environment characterized by declining prices. Several significant factors contributed to this downward trend, primarily driven by weak demand from crucial industries such as automotive and steel manufacturing. The reduced activity in these sectors led to a noticeable decline in Graphite consumption, creating an oversupply situation. On the supply side, the market remained stable, with consistent production levels and normalized exports from China, preventing any supply disruptions. However, this stability contrasted sharply with the weakening demand dynamics, which exerted downward pressure on prices. Germany, in particular, experienced the most significant price changes within the region, highlighting the localized impact of broader market trends. Overall, market sentiment was decidedly negative, evidenced by a -4% decrease from the previous quarter and a -2% decline between the first and second halves of Q3. Seasonal factors and market correlations further influenced these price adjustments. By the end of the quarter, Graphite Flakes (94%, -100 mesh) Ex Hamburg, Germany, were priced at USD 831 per metric ton, underscoring the prevailing downward pricing environment. Notably, no significant disruptions or plant shutdowns were reported during this quarter, indicating a relatively stable production landscape.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has been marked by a notable decline in graphite prices across North America, shaped by a convergence of critical factors. A primary influence has been the combination of heightened supply chain disruptions and a downward shift in demand, exacerbated by geopolitical tensions and economic uncertainties. The price environment for graphite has been predominantly negative, characterized by a persistent oversupply in the market. Additionally, logistics inefficiencies, such as increased freight rates and shipping delays, have further strained the supply side, depressing prices.
In the USA, where the most significant price changes have been observed, the overall trend has reflected a consistent decrease. Seasonal factors, including the customary decline in industrial activity during the summer months, have played a role in this downturn. Moreover, the correlation between graphite prices and broader economic indicators, such as manufacturing slowdowns and reduced automotive sales, has accentuated the negative pricing sentiment.
From the previous quarter in 2024, graphite prices saw a reduction of 2%, reflective of the ongoing market pressures. The latest price at the end of the quarter stood at USD 1109/MT of Graphite Flakes (94%, -100 mesh) CFR Houston, signaling a stable yet decidedly downward trajectory in the graphite market for Q2 2024. This environment has not been ameliorated by any significant plant shutdowns, further entrenching the negative pricing outlook.
APAC
The APAC graphite market experienced a noticeable downturn in Q2 2024, driven by several significant factors influencing its pricing environment. The quarter was marked by elevated supply levels, which overshadowed the moderate to high demand from industries such as electric vehicles and electronics. This supply glut was exacerbated by the increased production output and stable mining activities, leading to a steady decline in market prices. Additionally, international trade policies, including tariffs and export controls, introduced complexities to the market dynamics, further contributing to the bearish sentiment.
China witnessed the most significant price changes within the APAC region. The country’s graphite market was heavily impacted by increased supply and the lack of corresponding demand growth, which led to a consistent downtrend in prices. Seasonality played a role, as the quarter did not align with peak demand periods, resulting in subdued trading activities. The correlation of price changes indicated a clear negative trend, reflecting a decline in investor and business confidence. Compared to the previous quarter, the price dropped by 4%, accentuating the bearish market conditions.
Concluding Q2 2024, the price of Graphite Flakes (94%, -100 mesh) FOB Shanghai in China was USD 804/MT, reflecting a persistently negative pricing environment. The overall sentiment across the quarter remained bearish, with the pricing trends indicating an ongoing supply-demand imbalance and external trade challenges. No major plant shutdowns or disruptions were reported during this timeframe, emphasizing that the price decline was primarily due to market dynamics rather than supply chain interruptions.
Europe
In Q2 2024, the European graphite market witnessed a consistent decline in pricing, influenced by a confluence of overarching economic factors and regional dynamics. The integration of the EU Critical Raw Materials Act (CRMA) aimed to bolster domestic production and reduce reliance on imports, which inadvertently led to short-term oversupply. Simultaneously, fluctuating energy costs and rising inflation, exacerbated by increased alloy surcharges for stainless steel, created an environment where production costs surged, yet market demand remained tepid. Furthermore, global disruptions, including rerouted shipping routes due to geopolitical tensions and increased freight costs, compounded supply chain inefficiencies. Focusing on Germany, which experienced the most pronounced price fluctuations, the graphite market reflected a clear negative trend throughout Q2. The automotive sector, although showing signs of recovery, could not offset the broader manufacturing slowdown. The decline in new car registrations, coupled with stagnation in the construction sector, dampened overall demand for graphite, further driving prices down. With a recorded 2% decrease from the previous quarter, the pricing environment remained unequivocally negative. The quarter concluded with graphite prices at USD 858/MT, reflecting the persistent downward pressure. Disruptions, although not explicitly reported for graphite plants in Germany, implied a backdrop of operational challenges and industry-wide perturbations.
For the Quarter Ending March 2024
North America
The North American graphite market experienced a mixed pricing environment during the first quarter of 2024. Overall, prices remained stable towards the end of the quarter. The market was influenced by various factors including supply stability, stable demand, and overall economic conditions.
Supply of graphite in the region remained ample, during the quarter. Winter weather conditions began to subside, allowing for a smoother supply chain. However, inflationary pressure on consumers continued to rise, which may have affected pricing. Demand for graphite in North America remained stable throughout the quarter, showing no significant change compared to the previous quarter. The automotive and construction sectors, which are major consumers of graphite.
Looking specifically at the United States, the pricing situation was like the overall North American market. Prices saw a slight decrease in February but remained stable overall. The construction market in the US started the year on a bearish note, with spending declining and low demand domestically and internationally. In terms of seasonality, the market tends to be slower during the winter months due to reduced construction activity. Overall, the pricing environment for graphite in North America during the first quarter of 2024 can be described as stable with a slight upward trend towards the end of the quarter. The latest quarter-ending price for graphite flakes (94%, -100 mesh) CFR Houston in the US was recorded at USD 1146/MT.
APAC
The first quarter of 2024 has been challenging for the Graphite market in the APAC region. Market prices have been influenced by various factors, resulting in fluctuations and a generally unstable pricing environment. In China, the largest market for Graphite, prices have seen significant changes. The low domestic demand from industries such as construction and automotive has played a major role in driving prices down. The Chinese Metal market has faced difficulties in procurement and high inventory burdens. Overall, the market situation for Graphite in the APAC region has been balanced. Supplies have remained stable, but demand has been low. The lack of raw material supplies and low consumption rates have affected both domestic and international markets. Looking at the price trends, there has been a decrease in prices compared to the same quarter last year.
In conclusion, the pricing environment for Graphite in the APAC region during the first quarter of 2024 has been negative. The low domestic demand, lack of raw material supplies, and overall decline in demand have contributed to the unstable market conditions. The quarter-ending price for Graphite Flakes (94%, -100 mesh) FOB Shanghai, China is recorded at USD 873/MT.
Europe
During the initial three months of 2024, the pricing trends of Graphite in Europe displayed a complex structure, influenced by a variety of factors beyond the usual top contenders. The market scenario in Germany played a pivotal role in the fluctuations of prices, given its diverse landscape across different sectors. Additionally, changes in political leadership and financial support from the EU affected market dynamics, particularly in Central and Eastern Europe. Moreover, global scrap prices fluctuated, with different regions experiencing varied trends, further contributing to market uncertainties. Despite, the automotive industry saw an upturn due to increased car registrations, the construction sector remained lacklustre, impacting the pricing dynamics of numerous commodities, Graphite included. Furthermore, Germany's export market performed exceptionally well in February 2024. It's important to highlight that the producer prices index in Germany has consistently decreased, primarily due to lower energy costs, thereby contributing to the overall decline in Graphite prices. As a result, the final price of Graphite Flakes (94%, -100 mesh) Ex Hamburg in Germany currently stands at USD 889/MT.
For the Quarter Ending December 2023
North America
In the canvas of North America's Graphite pricing during Q4 2023, the quarter unfolded with distinctive dynamics that shaped the market landscape. A notable absence of reported plant shutdowns underscored the resilience of the industry's operational continuity, setting a backdrop of bullishness. Directing our lens towards the USA, a nation pivotal in regional dynamics, we unravel the nuanced factors steering the price fluctuations.
The analysis extends beyond mere pricing, delving into the intricate realms of trends, seasonality, and correlation patterns, weaving a narrative of market intricacies. Over the past year, Graphite Flakes (94%, -100 mesh) CFR Houston witnessed a healthy purchase, reflecting the market's upliftment. While there was an increase in the market fundamentals from the preceding year, a subtle 3% adjustment from the previous quarter underscored the market's adaptability.
A closer look at the intra-quarter dynamics revealed a detailed exploration of the first and second halves, unraveling subtle pricing differentials. Culminating this intricate exploration is the quarter-ending price of Graphite Flakes (94%, -100 mesh) CFR Houston in the USA at USD 1154/MT, encapsulating the intricate forces steering the North American Graphite market in the conclusive quarter of 2023.
APAC
In the realm of Graphite pricing in the APAC region for Q4 2023, the market unfolded with distinctive nuances, offering insights into three pivotal factors that shaped its trajectory. Amidst the quarter, a discernible absence of reported plant shutdowns underscored the robustness of the industry's operational continuity. As our focus turns towards China, a keystone player in the global Graphite market, noteworthy price dynamics unfolded, manifesting the nation's influence on regional price movements. The quarter's narrative is further enriched by a nuanced exploration of trends, seasonality, and correlations, unravelling the intricate dance of market forces. Over the past year, Graphite Flakes (94%, -100 mesh) FOB Shanghai prices displayed a remarkable constancy. However, a nuanced 4% adjustment from the previous quarter emphasized the market's adaptability. Zooming in on the intra-quarter dynamics, a detailed examination of the first and second halves illuminated nuanced pricing disparities. In summation, this comprehensive exploration culminates in the quarter-ending price of Graphite Flakes (94%, -100 mesh) FOB Shanghai in China at USD 874/MT, encapsulating the multifaceted forces steering the APAC Graphite market in the conclusive quarter of 2023.
Europe
In the intricate tapestry of Europe's Graphite pricing landscape for Q4 2023, notable dynamics emerged, shaping the market milieu. The absence of reported plant shutdowns signified the industry's resilience, fostering a healthy trading environment. Focusing on Germany, a linchpin in regional dynamics, we dissect the nuanced factors steering price fluctuations. This analysis transcends mere pricing, delving into trends, seasonality, and correlation patterns, painting a comprehensive portrait of market intricacies. Over the past year, Graphite Flakes (94%, -100 mesh) Ex Hamburg sustained a consistent equilibrium, reflecting market steadfastness. While the year-on-year pricing exhibited compelling variations, a strong 4% adjustment from the preceding quarter highlighted the market's adaptability. Further scrutiny into intra-quarter dynamics revealed intricate pricing differentials between the initial and latter halves. Culminating this exploration is the quarter-ending price of Graphite Flakes (94%, -100 mesh) Ex Hamburg in Germany at USD 879/MT, encapsulating the intricate forces steering the European Graphite market in the conclusive quarter of 2023.
For the Quarter Ending September 2023
North America
In July, the US graphite flakes market witnessed a price surge due to robust demand from the steel industry and supply constraints. International demand also grew as weather-related disruptions ended, boosting global demand. The Producer Price Index for final demand increased by 0.3% in July, leading OEMs to explore alternative battery materials, potentially at a premium compared to Chinese materials, thereby increasing supply chain demand. While there was no domestic shortage, limited availability of graphite flakes was evident in the US market. The Federal Reserve's interest rate hike to control inflation impacted the manufacturing and construction sectors. Additionally, there was a shortage of non-Chinese graphite that qualifies under the US Inflation Reduction Act for electric vehicle (EV) subsidies, raising concerns about dependence on Chinese synthetic graphite. Midway through Q3, the US graphite market saw declining prices due to decreased demand amid increased extraction activity. Anode producers outside China are also increasingly seeking long-term natural graphite feed supply. Market participants anticipate improved conditions in September and October as spherical graphite producers stockpile for the winter shutdown in Luobei, a major graphite production hub.
APAC
The Chinese graphite market experienced a stable price trend for graphite flakes in the third quarter due to reduced demand and shifts in raw material usage by producers. The global graphite industry, particularly the anode market, is increasingly favoring synthetic graphite over natural materials. This shift is driven by factors like cost differences between domestically produced and imported materials and varying raw material choices based on regional client demands. Producers using domestic feedstock have lowered their prices due to weaker demand, while those relying on imported feedstock face narrower profit margins. The increasing demand for graphite anodes, driven by the growth of energy storage and electric vehicles, has created a need for both natural and synthetic graphite raw materials. However, China's growing graphitization capacity has created a bottleneck for anode production, affecting prices. Weak demand from the steel sector has further suppressed electrode demand. Despite the long-term potential of natural graphite, prices have fallen due to increased competition from Chinese synthetic graphite, lower production costs, and a surplus of synthetic graphite for electric vehicle batteries. In order to counter this, the graphite industry is seeking diversification of supply sources, reducing reliance on China, and embracing eco-friendly production methods, aiming to recover from the current challenges.
Europe
Graphite flake prices in the German market remained stable in the third quarter due to declining demand in the steel sector. Rebounding was observed in July, along with increased contracts from the downstream industries. Natural graphite flake prices are expected to grow significantly over the next decade, driven by the booming electric vehicle (EV) battery sector and efforts to diversify away from Chinese sources, focusing on eco-friendly production. The synthetic graphite supply has been rising, and anode manufacturers are increasingly using synthetic graphite over natural graphite. In the first half of 2023, synthetic graphite reached utilization rates of 85-90%, up from the typical 70%. Nevertheless, due to government investments in diversified and sustainable supply, natural graphite will still play a role in anode material demand in the US and Europe. Despite a positive long-term outlook, graphite prices declined in the current year due to factors such as competition from Chinese synthetic graphite and reduced demand from the electric arc furnace steel sector. Companies are securing natural graphite supply agreements to reduce reliance on China in line with government policies and strategic goals.
For the Quarter Ending June 2023
North America
A mixed price trend has been observed in the price of Graphite for the second quarter in the US spot market. The initial phase of the second quarter has observed a decline in demand from the end user of graphite electrodes as the inventory level remained on a higher edge. The US government faced a declining economic situation amid the downfall of major banks across the USA, which created the debt crisis condition in the US spot market. The weakening economy adversely affected the consumption rate of Graphite as the demand for Graphite from the downstream electrode manufacturing industry remained on a lower edge as the Steel making activity slowed down in the local Electric Arc Furnace-based steel mills across the USA. Meanwhile, The price difference between locally manufactured ultra-high power (UHP) and high power (HP) electrodes gets narrowed down with respect to foreign-manufactured electrodes, which increases the competition from overseas markets. According to major market players, there was a reduction in the destocking rate as the major players already had sufficient supply. The US spot market observed a lack of urgency among major electrode-producing companies leading to a hike in local inventory levels. The increase in coke price and challenges in increasing trade rate put downward pressure on the price of Graphite across US mills. The local mills were incited to lower their prices to gain a higher number of orders and uplift the declining market condition.
Asia-Pacific
A mixed-priced trend has been observed in the price of Graphite for the second quarter in the Chinese spot market. The initial phase of the second quarter has observed a decline in demand from the end user of graphite electrodes as the inventory level remained on a higher edge. The demand for Graphite from the downstream electrode manufacturing industry had remained on a lower edge as the Steel making activity slowed down in the local Electric Arc Furnace-based steel mills across China. According to major market players, there was a reduction in the destocking rate as the major players already had sufficient supply. The Chinese spot market observed a lack of urgency among major electrode-producing companies leading to a hike in local inventory levels. The increase in coke price and challenges in increasing trade rate put downward pressure on the price of Graphite across Chinese mills. The price difference between locally manufactured ultra-high power (UHP) and high power (HP) electrodes gets narrowed down with respect to foreign-manufactured electrodes, which increases the competition from overseas markets. The local mills were incited to lower their prices to gain a higher number of orders and uplift the declining market condition.
Europe
The price of Graphite shows a mixed trend for the second quarter in the German spot market. The demand for Graphite from the downstream electrode manufacturing industry had remained on a lower edge as the Steel making activity slowed down in the local Electric Arc Furnace-based steel mills across Germany. The German spot market observed a lack of urgency among major electrode-producing companies leading to a hike in local inventory levels. The increase in coke price and challenges in increasing trade rate put downward pressure on the price of Graphite across German mills. According to major market players, there was a reduction in the destocking rate as the major players already had sufficient supply. The initial phase of the second quarter has observed a decline in demand from the end user of graphite electrodes as the inventory level remained on a higher edge. The price difference between locally manufactured ultra-high power (UHP) and high power (HP) electrodes gets narrowed down with respect to foreign-manufactured electrodes, which increases the competition from overseas markets. The local mills were incited to lower their prices to gain a higher number of orders and uplift the declining market condition.
For the Quarter Ending March 2023
North America
In Q1 2023, the US graphite market experienced mixed sentiments due to varying downstream demand and limited stockpile inventories. In January, the downstream production activity remained low despite strong buyer demand, while high inflation negatively affected demand conditions. The Inflation Reduction Act was passed to increase EV sales, resulting in increased demand for graphite flakes due to strong inquiries from downstream EV batteries. In February, the prices of raw materials upstream of graphite electrodes rose, causing high-cost pressure, and some businesses had to cease operations. Many spherical graphite producers faced narrow profit margins or losses due to the current price of fine flake graphite; some were even on hiatus. In March, the domestic market displayed a bearish sentiment, and new orders for Uncoated Spheroidized Graphite (uSPG) were falling, with major anode producers consuming existing stocks. Despite industry participants remaining optimistic, slow sales growth and high inventories held by Original Equipment Manufacturers (OEMs) suggest that natural or synthetic anode prices will continue to face downside risks.
Asia Pacific
In the first quarter of 2023, the Chinese Graphite market experienced a decline in demand due to sluggish market trends and high inventory levels. The Chinese government ended its subsidy system for EV purchases in January 2023, leading to a short-term reduction in demand for natural anode material. Prices of spherical graphite remained stable, as downstream demand was weak and graphite production capacity was sufficient. However, natural graphite anode prices slightly fell, as battery manufacturers aimed to reduce their costs. The COVID-19 pandemic and the economic environment also impacted end-user consumption, resulting in an increase in battery factories' inventories and destocking. In February, Chinese producers were able to lower their prices in US dollar terms due to the weak US dollar and declining costs and prices of competing synthetic graphite materials. Despite positive industry expectations, slow sales growth in Q1 and high inventories held by OEMs put natural/synthetic anode prices under downside risk. Spherical graphite prices declined due to the EV battery industry's declining demand, while flake graphite prices remained stable due to seasonal production outages.
Europe
In Q1 2023, the German Graphite market saw a decline in prices due to high inventory levels and limited downstream inquiries. Despite seasonally lower output, the demand for graphite decreased, and prices fell due to weakening demand. Graphite flake prices in Europe decreased because of slower demand from traditional sectors, especially the steel industry, and lower freight rates. The reduction in electrified car sales in Germany further weighed on demand. In February, the domestic market displayed a bearish sentiment, while demand in international markets showed a muted upward trend. Spherical graphite producers struggled to make a profit, and some even halted production due to the price of fine flake graphite. In March, high-energy synthetic graphite anode prices dropped, making them more competitive and lowering battery cell costs for automakers. However, several spherical graphite producers faced narrow profit margins or losses due to the current price of fine flake graphite.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, Graphite prices in the US market fluctuated due to increased product availability, moderate inflationary pressure, and a positive outlook for downstream demand. According to market participants, the global slowdown accelerated in October, with manufacturing and service performance deteriorating and output contracting more rapidly. According to manufacturers, production activity increased at a marginal rate, assisted by reduced bottlenecks. Despite lower inflationary pressures in mid-Q4, buyers claimed that the graphite demand outlook had worsened. According to market participants, the EV industry was gaining traction in the United States as a result of incentives provided by the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law (BIL), but a major impediment to electrification was a lack of domestic EV battery material supply to meet production targets. As a ripple effect, the Graphite Flakes prices for CFR Houston settled at USD 1038/MT.
Asia Pacific
Graphite prices rose in the Chinese market as Q4 2022 approached, owing to logistical concerns and fluctuating downstream demand. According to market participants, logistical issues coupled with geopolitical concerns from the Russia-Ukraine war made downstream Electric Vehicle (EV) battery manufacturers eager to localize their graphite source in October. In November, a sharp drop in freight rates forced manufacturers to lower their quotations. Despite falling prices, demand for Chinese graphite material exports remained subdued. However, a scarcity of large-flake graphite, coupled with relatively high demand from downstream overseas markets, boosted the graphite market in December. According to market participants, tight supply and winter stockpiling drove flake prices to an all-time high in December. Furthermore, subsidies for new energy vehicles were coming to an end, and the consumer stimulus was fading. End-user consumption remained low as a result of the spread of the COVID-19 pandemic and its impact on the economic environment. As a ripple effect, Graphite Flakes (94 %, -100 mesh) prices for FOB Shanghai (China) settled at USD 874/MT.
Europe
In the European market, Graphite prices edged downward in the fourth quarter of 2022 due to a sluggish demand outlook. According to market participants, despite persistently high inflation, elevated energy costs, rising interest rates, and the threat of a recession, production activity remained stable in October. In the face of weak demand and high energy costs, cheaper imports from overstocked inventories undercut prices in mid-Q4. Major European refractories continued to purchase from sources other than China due to worries about "fake flake graphite." According to market participants, demand would not return to Europe's electrode production sectors until electricity prices fell. Downstream consumption was reduced in response to high electricity prices, reflecting a global weakening in consumption that had been reflected in prices. Strong political intentions and rising demand were supporting Europe's natural and synthetic graphite supply chains, but obtaining permits for new projects remained the most difficult challenge. Thus, the Graphite Flakes prices for Ex Hamburg settled at USD 826/MT.
For the Quarter Ending September 2022
North America
The price of Graphite declined in Quarter 3 of 2022, backed by the weak demand concerns from end-use industries such as Electronics. The lower construction activities have eventually resulted from the region's lower house-building demand, leading to slow demand from this sector in the first half of this Quarter. Meanwhile, several market uncertainties have led to a production cut in the North American region. Besides, the elevation in demand from the downstream industries, such as the manufacturing of electrodes in lithium batteries, increased the market activities of Graphite during September 2022. Furthermore, the U.S Graphite market was impacted by the Chinese squeezed economic growth due to Covid-19 lockdown uncertainties. Thus, the graphite market was persistently tight with diminished export offers.
APAC
Graphite prices increased in the third Quarter with rising petroleum costs in the region. China is the primary producer and consumer market for Graphite globally. The commodity price in China's domestic market was impacted by the COVID lockdown uncertainties in the market, and workers' strikes amidst wage disputes hampered production activities in the Chinese market in the Q3 of 2022. Further, prices have also risen due to the elevation in the offers from the EAF industries. The Graphite market has increased due to the surge in inquiries from sectors that produce electrodes for lithium batteries in the region.
Europe
German graphite market in the third Quarter of 2022 was stable as supplies from China were constrained due to delayed cargo movement amid port congestion at European ports and elevated Chinese production uncertainties amidst COVID-19 lockdown challenges. Meanwhile, ample supplies squeezed the demand-supply gap in the Quarter ending September 2022 relative to the previous few months, amid constant demand from the E.V. segment. Moreover, stable Graphite demand in energy applications, such as fuel cells, impacted the pricing dynamics of the commodity. The European energy crisis amid the Russian supply crunch weighs on the growth of the graphite market, compelling the manufacturers to revise the product's price.
For the Quarter Ending June 2022
North America
In North America, the price of Graphite increased throughout the second quarter. The price increase is due to the increasing demand from the EAF (Electric Arc Furnace) industries, where Graphite Electrodes are used to melt steel scrap. The rising demand from the industries which is manufacturing electrodes in lithium batteries has also contributed to the rise in the market value of Graphite. Furthermore, U.S. reliance on China for Graphite, a key ingredient in batteries, has emerged as a significant obstacle to electric-vehicle makers' production schedules amid trade disputes and soaring demand. Thus, the graphite market is tightening, especially for grades suitable for use in batteries, as demand rises robustly.
APAC
Graphite Flakes increased throughout the second quarter because the prices for Synthetic Graphite Powder increased. The price of petroleum was hiked in China's domestic market, and calcined petroleum coke is the by-product left out after petroleum refining. Graphite Flakes are used in fewer amounts as an additive in Graphite Electrode products to enhance the working of Synthetic Graphite Powder to finalize the Graphite. China is the leading production and consumption market for Graphite globally. Prices have risen due to the increasing demand from the EAF (Electric Arc Furnace) industries, where Graphite Electrodes are used to melt scrap steel. The market value of Graphite has increased as a result of an increase in demand from industries that produce the electrodes for lithium batteries.
Europe
German graphite market was hit hardest in the second quarter of 2022 as supplies from China continue to be constrained due to high freight costs and delayed freight transit times at major ports in China. Although supplies have improved in May relative to the previous few months, increased demand from the European E.V. segment and continued delays in Chinese shipments pushed the prices. In addition, flake graphite is used in energy applications such as fuel cells, vanadium-redox battery technology, and pebble-bed nuclear reactors. The growing energy industry is propelling the growth of the flake graphite market, compelling the manufacturers to increase the product's price. At the same time, low inventory availability, increasing demand, and advancement in uses of the product have lifted its prices.
