Stephen Riddle: The Natural Flake Graphite Market is a “Buyer’s Market” Right Now

At this year’s Benchmark Minerals Week’s Graphite+Anodes conference in Newport Beach, the Investing News Network sat down with Stephen Riddle, CEO of Asbury Carbons, who shared his insight on the graphite market, both natural and synthetic.

Riddle said that the natural flake graphite market is turning into a “buyer’s market,” while the synthetic market is more of a “seller’s market.”

“[As an investor] in the natural flake graphite market, it’s about finding the right junior miner that fits the criteria of being low-cost, that has a good business plan and that is realistic in the market,” he said.

He also talked about capital expenditure differences between graphite projects and other metals, which according to Riddle is one of the reasons the market has overcapacity right now.

“[That’s] because the capital expenditure is very low compared to other minerals, and even between private and public companies,” he explained.

For Riddle, because the capital expenditure is low, investors tend to think the risks are low, “and when they think that they tend to invest in capacity faster than the demand growth.”

Speaking about the short-term graphite market, Riddle said he expects growth in the market, although in terms of prices he expects natural flake graphite prices will be lower or remain flat next year.

Riddle also shared his thoughts on new anode technologies and what the role of graphite will be in the near future.

Listen to the interview above for more insight from Riddle, including what he expects for the market in the short and long term. You can also click here to listen to our full Graphite+Anodes interviews playlist on YouTube.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in contributed article. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.