Q1 2024 – The initial quarter of 2024 posed significant challenges for the Graphite market in the Asia-Pacific region being the largest producer. Graphite Prices experienced notable fluctuations primarily due to diminished domestic demand in China, procurement difficulties in the Metal sector, and restricted availability of raw materials. Although supply levels were consistent, overall Graphite demand continued to be lacklustre. The analysis of price trends indicated a downward movement. In summary, the pricing landscape for Graphite was largely unfavourable, culminating in a quarter-ending price for Graphite Flakes FOB Shanghai, China, which was approximately USD 564 per metric ton.
Q2 2024 – The Graphite market within the Asia-Pacific region faced a decline in the second quarter of 2024, primarily attributable to ample supply and weakened Graphite demand. Heightened production levels combined with steady mining operations resulted in an excess of supply, while international trade regulations introduced further complexities. As the leading market, China experienced considerable Graphite price reduction, driven by the surplus supply and a failure to match this with demand growth. Additionally, seasonal factors influenced market dynamics. Prices fell by approx. 14% compared to the preceding quarter, signifying a downturn in both investor and business confidence. The prevailing market sentiment remained pessimistic, marked by a persistent imbalance between supply and demand alongside challenges associated with external trade.
Q3 2024 – The graphite market in China faced a decline during July and August 2024, largely attributable to excessive Graphite production capacity, diminished demand, and governmental initiatives to curtail steel manufacturing. Although prices reached a level of stability in August, various elements affected the market, comprising factory shutdowns, reductions in inventory, and escalating geopolitical strife between the United States and China.
Q4 2024 – The Chinese graphite market is poised for a period of price stability or a slight decrease in the fourth quarter of 2024. While the growing demand for electric vehicles may offer some support, downward pressures from overcapacity and intensifying competition within the industry are likely to persist. Government interventions and potential geopolitical risks could further influence market dynamics. Overall, the market is expected to experience a relatively stable period, with a slight downward bias in prices.