For the Quarter Ending June 2025
North America
• The North America Graphite Price Index in Q2 2025 decreased by 16.26% quarter on quarter, reflecting continued oversupply as major producers in China, Mozambique and Brazil maintained high output, outpacing muted downstream consumption.
• Graphite Production Cost Trend: Raw material costs (notably coke for anode manufacturing) trended downward, while logistic expenses eased as freight rates on key routes fell, providing minor cost relief but doing little to stem the price decline.
• Graphite Demand Outlook: Demand remained subdued across key sectors—U.S. EV sales declined by around 5% and steel production dipped by 0.4% with slow infrastructure and charging station rollouts further limiting draw on graphite inventories.
• Graphite Price Forecast: While short term oversupply is expected to persist, a medium to long term structural deficit driven by rising EV and energy storage demand could trigger a moderate price recovery later in 2025.
• By the end of the quarter, inventories in warehouses remained elevated with no significant logistical disruptions, keeping downward pressure on the Graphite Prices.
Why did the Graphite price change in July 2025 in North America?
The Graphite Price Index registered a sharp increase after the U.S. Commerce Department announced preliminary anti dumping duties of 93.5% on Chinese graphite imports, prompting buyers to accelerate purchases ahead of enforcement and tightening import supply.
APAC
• The APAC Graphite Price Index registered a 10.35% quarter on quarter decline, weighed down by abundant inventories in China and steady production from major regional suppliers, which outpaced muted consumption in key end use sectors.
• Graphite Production Cost Trend: Production costs trended lower at the start of the quarter as electricity tariffs and petroleum coke feedstock prices declined, narrowing margins for tolling operators; these cost savings plateaued mid quarter, stabilizing overall cost structures.
• Graphite Demand Outlook remained subdued across APAC markets, with the automotive and energy storage sectors exercising caution on procurement amid broader economic uncertainties and trade policy headwinds.
• Graphite Price Forecast: a gradual price recovery in H2 2025, driven by planned capacity rationalizations, logistical normalizations, and resurgent battery grade demand as downstream projects resume contracting.
• Inventories across major APAC ports stayed elevated by the end of the quarter, exerting continued downward pressure on spot prices and reinforcing a buyer’s market.
• Why did the Graphite price change in July 2025?
The Graphite Price Index in APAC edged higher in July after Chinese ultra high power graphite electrode prices stabilized in June and were forecast to nudge up due to tightening supply and rising raw material costs
Europe
• The Graphite Price Index in Europe declined by 8.21% in quarter-over quarter in Q2 2025, reflecting persistent oversupply across major markets and muted consumption in key downstream sectors.
• Elevated inventory levels particularly of flake and spherical graphite continued to outpace demand, sustaining bearish pricing throughout the quarter.
• While raw material and energy inputs saw modest upward pressure, a significant drop in freight costs—mirroring a 5.3% fall in global container rates—helped lower landed import costs.
• The net effect was a mixed production cost trend: overall unit costs edged up, but logistics savings partially offset margin squeezes for European processors.
• Weakness in the automotive sector (both ICE and EV) and subdued steelmaking activity kept short term demand subdued, even as longer term drivers—like grid scale battery storage—remain intact.
• Demand from data centers and electronics held steady, but not enough to absorb the existing oversupply; end users adopted a “just in time” procurement approach, delaying large restocking.
• Given high inventories and limited order flows, the Graphite Price Forecast points to continued downward pressure into Q3 2025, with only a modest rebound expected if supply from dominant Chinese exporters eases.
Why did the Graphite price change in July 2025 in Europe?
The Graphite Price Index in Europe actually increased in July 2025, as the European Commission’s extension of anti dumping measures on Chinese artificial graphite imports tightened available supply and supported prices.
For the Quarter Ending March 2025
North America
In North America, the graphite market witnessed notable fluctuations in Q1 2025, shaped by shifting supply chains, trade policy uncertainties, and evolving industrial demand. The region's reliance on imported graphite particularly from China and emerging African suppliers kept markets sensitive to global developments and logistics costs.
In the United States, graphite prices began the quarter with a marginal rise, supported by steady manufacturing activity and a rebound in automotive and infrastructure demand. Mid-quarter, supply constraints from China’s export restrictions and rising input costs lifted prices temporarily. However, by the end of the quarter, the market turned bearish due to oversupply, falling demand from EV and steel sectors, and softened freight rates.
When compared to Q4 2024, QoQ prices decreased by 5.5%, closing Q1 2025 at USD 912/mt CFR Houston for Graphite Flakes. The market was further impacted by policy shifts under the new U.S. administration and delays in downstream contracting, signaling caution across the value chain. Future demand prospects hinge on industrial recovery and emerging high-tech applications.
APAC
In Q1 2025, the Asia-Pacific (APAC) graphite market reflected a mixed performance, largely shaped by China’s evolving supply-demand dynamics and broader economic trends. The region, led by China, experienced a volatile quarter with early optimism dampened by mounting challenges in manufacturing and downstream demand sectors. China’s graphite market saw a minor price increase at the start of the quarter, driven by stable production and firm demand from the electric vehicle sector. However, this momentum waned as the quarter progressed. By mid-quarter, logistical disruptions from Lunar New Year celebrations and tight export controls contributed to constrained supply, though downstream interest remained relatively resilient. Toward the end of the quarter, a surge in production capacity combined with muted global demand led to price declines. When compared to Q4 2024, the QoQ price decreased by 3.9% in Q1 2025, closing at USD 623/mt FOB Shanghai for Graphite Flakes (94%, -100 mesh). Oversupply, cautious buyer sentiment, and weaker industrial activity collectively weighed on China’s graphite market performance this quarter.
Europe
In Q1 2025, Europe’s graphite market remained under pressure despite early signs of economic recovery. Persistent oversupply, high inventories, and geopolitical instability across major supply regions created a volatile environment. While sustainability initiatives and regulatory support offered some structural strength, prices were primarily influenced by external trade and production dynamics. Focusing on Germany, the market witnessed a marginal price increase at the start of the quarter, followed by a sharp decline by quarter-end. When compared to Q4 2024, the QoQ price decreased by 2.8%, with prices settling at USD 785/mt Ex Hamburg for graphite flakes. Germany's heavy reliance on imports kept the supply chain exposed to global disruptions, including shifts in Chinese graphite production and uncertainty from Mozambique and Madagascar. On the demand side, growth in the battery-electric vehicle (BEV) sector supported market fundamentals, though many manufacturers operated off existing stockpiles. Meanwhile, steady but unspectacular demand from construction and industrial applications, coupled with weak arbitrage opportunities and increased use of substitutes, capped any meaningful recovery in graphite consumption.
For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, graphite prices in North America faced a declining trend, influenced by a combination of market and geopolitical factors. The region continued to rely heavily on imports from China, Madagascar, and Mozambique, with strategic adjustments in global production impacting supply chains. While efforts such as U.S. government investments in alternative graphite sources and manufacturing facilities signaled a push toward supply chain diversification, domestic production challenges persisted. The quarter ended with graphite flake prices at USD 1013/MT CFR Houston.
In the United States, demand dynamics remained mixed. The electric vehicle sector, a key driver of graphite consumption, showed uneven demand as automakers adjusted production amid global supply chain disruptions. The construction sector experienced seasonal slowdowns, with reduced activity in multi-family housing projects and residential real estate facing high mortgage rates and declining inventory. Industrial sectors like steel and lubricants demonstrated resilience, but overall market sentiment was cautious. Additionally, geopolitical concerns over China's dominance in graphite production and evolving trade policies added pressure to the market.
Despite these challenges, the U.S. market made progress in securing long-term supply agreements, setting the stage for potential recovery in 2025 as economic conditions stabilize and new manufacturing initiatives take shape.
Europe
In the fourth quarter of 2024, the European graphite market experienced a consistent decline in prices, with Germany leading the downward trend due to subdued demand and shifting supply dynamics. The quarter started with a 0.7% price drop, driven by adequate domestic availability, reduced freight costs, and new supplies from Madagascar. Despite the slight easing in industrial metrics' decline, demand remained weak, particularly in the steel and battery industries, as BEV registrations fell 5% year-over-year. The German economy continued to struggle, with no signs of recovery in the manufacturing sector. Persistently low demand across key industries, including construction and EV production, led to further price reductions. BEV registrations dropped 22%, marking a significant year-to-date decline of 26%. Factory input costs also fell, reflecting a challenging economic environment and political instability. A shift toward synthetic graphite further impacted natural graphite demand. The EV sector’s annual sales shrank by 27.4%, while the construction sector faced ongoing contractions. These factors resulted in a surplus of graphite in the market, keeping prices under pressure and marking a challenging end to the year. The latest price at the end of the quarter stood at USD 797/MT Graphite Flakes (94 %, -100 mesh) Ex Hamburg.
APAC
In Q4 2024, the graphite market in the APAC region experienced a 3% price decline, driven by a combination of subdued demand and evolving supply dynamics. The region's production levels remained stable, supported by contributions from major producers like Madagascar and Brazil, alongside technological advancements in processing. However, demand across key sectors, including construction and automotive, showed mixed trends, with cautious inventory management and economic uncertainties influencing purchasing behavior. The battery sector remained a key demand driver, although inventory optimization efforts tempered immediate growth. In China, graphite prices faced sustained downward pressure, concluding the quarter at USD 656/MT for Graphite Flakes (94%, -100 mesh) FOB Shanghai. The market was impacted by strategic production adjustments, with several manufacturers scaling back output in response to weak demand and seasonal factors. The construction sector contracted further, and the automotive sector saw a dip in new energy vehicle penetration, dampening graphite consumption. Additionally, tighter export controls and geopolitical tensions contributed to reduced export activity, while domestic demand remained uneven across sectors. Despite challenges, steady production levels and cautious optimism in business expectations suggest potential stabilization in the coming year. Overall, the graphite market reflected a complex interplay of global and domestic factors throughout the quarter.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Graphite market experienced a notable decline in prices, with the USA showcasing the most significant fluctuations. Various factors influenced this downward trend. High supply levels, driven by stable domestic production and increased imports, created an imbalance with low demand across sectors like construction and manufacturing. Reduced consumer interest, economic uncertainty, and project delays in construction led to subdued demand.
The USA also faced challenges from weak industrial activity and declining auto sales, impacting graphite consumption. Additionally, global shipping disruptions and decreased freight prices affected market dynamics, contributing to the overall price reduction. Despite disruptions like plant shutdowns, the pricing environment remained negative, with a consistent decrease observed throughout the quarter.
Seasonal fluctuations and correlation in price changes highlighted a downward trajectory, with a notable 5% change from the previous quarter. The quarter-ending price of USD 1054/MT for Graphite Flakes (94%, -100 mesh) CFR Houston in the USA reflected this prevailing decreasing sentiment.
APAC
In Q3 2024, the APAC region witnessed a significant decrease in Graphite prices, with China experiencing the most notable price changes. Several factors influenced this market downturn. Firstly, a surplus in supply, driven by expansions in manufacturing capacities and subdued demand across various industries, created an imbalance. The construction sector faced challenges, while the automotive industry saw declines in sales, impacting graphite demand negatively. Additionally, economic challenges and low consumer sentiment added to the downward pressure on prices. In China specifically, the market experienced a substantial -13% price drop compared to the previous quarter. The second half of the quarter mirrored this decline, indicating a consistent negative trend. The price of Graphite Flakes (94%, -100 mesh) FOB Shanghai concluded at USD 684/MT, highlighting the persistently decreasing sentiment in the pricing environment. Despite no observed plant shutdowns, the market remained bearish, with prices continuing to face downward pressure due to high supply and low demand, signaling a challenging period for the Graphite industry in the region.
Europe
In Q3 2024, the European Graphite market encountered a challenging environment characterized by declining prices. Several significant factors contributed to this downward trend, primarily driven by weak demand from crucial industries such as automotive and steel manufacturing. The reduced activity in these sectors led to a noticeable decline in Graphite consumption, creating an oversupply situation. On the supply side, the market remained stable, with consistent production levels and normalized exports from China, preventing any supply disruptions. However, this stability contrasted sharply with the weakening demand dynamics, which exerted downward pressure on prices. Germany, in particular, experienced the most significant price changes within the region, highlighting the localized impact of broader market trends. Overall, market sentiment was decidedly negative, evidenced by a -4% decrease from the previous quarter and a -2% decline between the first and second halves of Q3. Seasonal factors and market correlations further influenced these price adjustments. By the end of the quarter, Graphite Flakes (94%, -100 mesh) Ex Hamburg, Germany, were priced at USD 831 per metric ton, underscoring the prevailing downward pricing environment. Notably, no significant disruptions or plant shutdowns were reported during this quarter, indicating a relatively stable production landscape.
FAQs
Q1: What factors are currently driving the price trends of graphite in different regions, and what are the major applications contributing to this demand?
The global graphite market is experiencing significant price drivers, primarily fueled by the booming demand from the electric vehicle (EV) sector and the subsequent surge in lithium-ion battery production. Regional variations are influenced by factors such as China's export policies (e.g., increased export duties on certain graphite products to promote domestic use), supply chain stability, and the pace of EV adoption and battery manufacturing facility development in regions like North America and Europe.
Q2: Who are the top graphite producers in the United States, and what is the current state of domestic graphite production?
Companies like SGL Carbon Corporation, GrafTech International, Superior Graphite Co., Anovion, Epsilon Advanced Materials, and NOVONIX are notable players in the US, primarily focused on synthetic graphite production and battery materials. The US government is also actively supporting the development of a domestic graphite supply chain through initiatives like the Inflation Reduction Act and Defense Production Act, aiming to reduce reliance on foreign sources, particularly for battery-grade graphite.
Q3: What are the key emerging technologies and sectors that are increasing the demand for graphite beyond traditional uses?
While refractories and steelmaking remain significant, emerging technologies are rapidly expanding graphite's demand. The most prominent is the lithium-ion battery industry for electric vehicles (EVs) and energy storage systems (ESS), where graphite serves as the primary anode material.
Q4: What are the main challenges and opportunities facing the global graphite market in the coming years?
The global graphite market faces both significant opportunities and challenges. Opportunities are primarily driven by the exponential growth of the EV and energy storage sectors, creating unprecedented demand for battery-grade graphite. This demand is spurring investments in new mines and processing facilities globally.
