In the latest issue of Benchmark Mineral Intelligence, analyst Simon Moores states that in 2014, China’s share of natural graphite output will sink by 15 percent, hitting “levels not seen since the mid-1990s when the country began exporting to international markets.” Specifically, the Asian nation will produce 70 percent of the world’s graphite
According to Moores, the decline raises the question of whether China has hit peak graphite. He notes:
Benchmark Mineral Intelligence believes we have likely seen peak graphite supply in China.
However, the industry can expect the receding of supply to be a steady process which cuts output levels to between 50-60% of global production over the next 3-5 years.
This means China will continue to be the world’s number one supplier of all natural graphite products in the long term. The country will try and replace raw material exports with that of value added products including coated, battery anode materials and graphene.
Click here to read the full Benchmark Mineral Intelligence report.
