The graphite market is once again stuck in a stalemate

“At present, the market prices of spherical graphite and flake graphite have dropped and dropped, and our customer demand has also decreased and decreased. Last year, the customer’s daily purchase volume was about 30 tons, and now it has dropped to 5 to 10 tons. We can only In accordance with the customer's demand for production, the market is once again stuck in a stalemate, and graphite companies are struggling to produce their products.” Min Xiaole, head of the spherical graphite sales department of Heilongjiang Aoyu Graphite Group, called the reporter on October 30th.

Recently, the price of spherical graphite has dropped from 20,000 yuan (t price, the same below) in May of this year to 19,000 yuan, compared with 22,000 to 23,000 yuan in the same period of last year, down by nearly 4,000 yuan year-on-year. The price of flake graphite is currently only about 3,500 yuan, which is about 40% lower than the average price of more than 5,000 yuan last year. Some companies reduce their inventory and produce according to customer demand. Some companies try to produce high-carbon, positive-going products. Even so, the production cycle of flake graphite companies has been reduced from the previous 10 months to 9 months this year.

There are two main reasons for this. The first is influenced by the foreign economic situation. In recent years, due to the rapid increase in the price of graphite, it has stimulated the international market, and some countries have newly established graphite companies to mass produce graphite products. Such as Canada, Australia, Africa, India and other countries and regions increased graphite production and exports. At the same time, Japan’s graphite imports accounted for 32.6% of China’s total exports. Japan imports a large amount of graphite raw materials from China, the price is only a few thousand dollars, and after purification processing, it is exported to China at a high price. Due to the issue of the Diaoyu Islands, the current export of graphite from China to Japan has been completely closed and has also become a factor in the reduction of graphite exports.

The second is the impact of the domestic economic situation and the industry itself. Domestic steel and automobile industries were greatly affected by the slowdown in the macro economy, and graphite was hit. In addition, the graphite industry also suffers from excessive production, unbalanced production and sales. In recent years, there have been several cases in which the graphite market is in a very good condition, products are in short supply, and the efficiency of enterprises has increased. However, they have all reversed due to the rapid increase in output. Such as -195 specifications of graphite, the price reached 3,600 yuan in 1990, the situation is excellent. However, due to excessive production in 2002, prices began to decline. The situation resumed in 2004 and another round of production surged in 2005. This fluctuates several times, and prices have fallen again in the second half of 2011. They have plunged from 6,000 yuan to the current 3,000 yuan, and transactions have been sparse.

These repeated fluctuations were mainly due to the fact that the total output of the industry was too large and production and sales were not balanced. The business cycle of graphite is usually three or four years. Although the industry association has done a lot of work, the effect is limited. The operating philosophy of individual companies is “everyone joins together and everyone joins in,” which seriously affects the advantages and healthy development of the industry.

The original secretary-general of the China Graphite Industry Association, Ruan Zhixiang, said that at present, the graphite market has indeed experienced a stalemate, with Heilongjiang Luobei, Jixi, and Inner Mongolia, and some other companies will be shut down, indicating that the off-season of the graphite industry has come. Normally, general graphite companies resumed production in January. However, if the time for resuming production next year is pushed back two months later, the economic situation at home and abroad will improve, then the price of graphite will gradually recover. If there is too much backlog of graphite companies in the recent period, the disorderly competition as in the past will encourage graphite prices to continue to decline.

Therefore, Zhi Zhixiang suggested that in the current downturn of the graphite market, industry colleagues should calmly work together to analyze the next transition issues, implementation methods for access conditions, etc., to discuss how the graphite industry in the end, how to adapt to the current situation. He pointed out that the domestic graphite industry can not sing each family's play, each knock on each other's drums. If deep processing is to be carried out, reasonable arrangements must be made. In order to develop rapidly in the graphite industry, it is imperative to limit production. However, each family is reluctant to take the lead in implementation, fearing that it will restrict production, and the market will be seized by others. If you make a rule, everyone can implement it to have good results.

Han Yufeng, president of the Heilongjiang Graphite Industry Association, also pointed out that the graphite market is now down, corporate inventories have increased, benefits have declined, and the market is chaotic. The biggest problem at the moment is that the production capacity is too large and the actual market demand is shrinking. Therefore, she suggested that the state should carry out macro-control, take measures to limit production, ensure the scientific and protective mining of mines, maintain market order, and support the extension of the deep processing industry chain.

Han Yufeng proposed several specific measures. First, regardless of the size of the company, how much the market sells, and how effective it is, the two companies jointly participate in the graphite industry's work to limit production. Second, according to the domestic and international demand of the graphite market, determine the annual total production of China's graphite industry, and then distribute it to each graphite production enterprise according to a certain percentage. The third requirement is that enterprises must produce according to the orders and the assigned indicators, and must not overproduce for no reason. Fourth, based on the current actual output, a standard is established so that the company can comply with the implementation, such as reducing the total volume of production by 20% to 30%. The fifth is to set up a small group to supervise and enforce, limit production, and guarantee the rapid development of deep-processing enterprises.

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