The Graphite Prices Continued to Climb in October 2022, With Firm Demand Globally

The global Graphite prices dynamics continued to showcase an upward momentum in October 2022, owing to the uptick in demand from the downstream automotive EV batteries sector, escalated input costs inflation, and supply disruptions across the globe.

German market faced a shortage of product stocks in the battery sector amidst delayed production activities and a slump in the Chinese imports of Graphite in the region. On the supply side, the workers' strike action in the primary ports of Germany and the UK due to wage disputes impacted the cargo movement and port performance in October 2022, affecting the supplies of Graphite. In addition, rising inflation has triggered a cost-of-living crisis across Europe. The German governing authorities are moving in to defend households and businesses from the never-ending surge in energy prices.

As per the latest insights, the price of Graphite settled at USD 848/tonne FOB Shanghai (China) in October 2022 with a month-on-month surge of 1.9%, backed by the soaring domestic EV demand and elevation in the overseas offers for Graphite. The growth in lithium-ion battery production in the Chinese market also raised the costs of the commodity. EV battery offtakes rose in the South Korean domestic and international market, lifting the Graphite price momentum in October. Moreover, the weaker South Korean Won against the US dollar has significantly impacted the product's price.

As per ChemAnalyst, the prices of Graphite in the global market will likely maintain upward movement during November 2022 with rising domestic offers. Graphite prices in Europe are likely to surge with the upstream energy values rising amidst the upcoming winter season. Meanwhile, the expected escalation in the production activities in the battery sector is potentially anticipated to impact the price momentum of Graphite in the APAC region.