Demand for -193 flake graphite stayed robust. Purchasing interest for spherical graphite maintained a steady upward trend, with inventory destocking accelerating in some segments. However, demand for mainstream large flake grades including -194 and -195 remained sluggish. The industry’s overall high inventory pressure has not been effectively eased. The market lacks upward momentum, and prices of all graphite grades stabilized at low cost levels.
Supply Side Natural graphite supply remained at a high and stable level this week, with ample available goods and accumulated inventory pressure. Leading graphite producers maintained steady operation rates and normal capacity output. Shipment volumes from small and medium manufacturers were stable, and circulating inventory in the market was sufficient. The fundamental mismatch between production and sales across the industry has not improved fundamentally, and total inventory remains high.
Divergence among graphite grades became more prominent. Driven by recovering demand, inventory consumption of -193 flake graphite accelerated, gradually easing its inventory pressure. In contrast, overstocking of mainstream large flake graphite remains severe, continuing to weigh on the overall market supply.
Demand Side Downstream demand maintained structural recovery this week, with obvious performance gaps across different grades. As peak-season stockpiling in September continued, downstream natural anode material enterprises kept replenishing inventories out of rigid demand. Demand for -193 flake graphite continued its recovery from last week with rising delivery volumes, making it the core supportive grade in the current market. Purchasing demand for spherical graphite stayed steady, with end-user rigid demand releasing gradually.
Nevertheless, overall stocking activities remained rational. End manufacturers persisted with low-inventory operation strategies and did not conduct large-scale bulk restocking. Meanwhile, end-user procurement of -194 and -195 large flake graphite stayed quiet, failing to offset the industry-wide inventory burden. Overall market trading activity remained weak.
Price Side Quotations for all natural graphite grades held steady this week with no price fluctuations. Although -193 flake graphite enjoyed improving demand and shipments, high industry inventory together with cautious sentiment among downstream end users prevented any actual price adjustments.
Currently, graphite prices of all categories have long hovered near cost floors. Upstream producers are strongly willing to hold prices and have little room for price cuts. Downstream buyers mainly make purchases only to meet immediate needs and still attempt to negotiate lower prices. A stalemate between buyers and sellers persists, keeping overall prices stable at low levels.
As of September 11:
- Heilongjiang: -193 flake graphite at RMB 2,150–2,300/tonne; -195 flake graphite at RMB 2,600–2,900/tonne; -194 at RMB 2,400–2,700/tonne; -190 at RMB 2,200–2,500/tonne.
- Shandong: -195 flake graphite at RMB 2,900–3,200/tonne; -194 at RMB 2,800–3,100/tonne.
Spherical graphite prices also stayed flat. Negotiated prices for large-size spherical graphite were around RMB 9,000–12,000/tonne, while small-size (6μm) spherical graphite stood at roughly RMB 18,000/tonne.
Market Outlook The structural divergence of the natural graphite market is likely to persist in the short term. As Golden September seasonal stocking continues, demand for -193 flake graphite and spherical graphite is expected to remain positive, supporting continued local inventory destocking. However, weak demand for mainstream large flake grades and high overall inventory will be hard to resolve quickly, leaving the market with limited rebound potential.
Solid cost support caps further downside risks for graphite prices. The natural graphite market is projected to see partial demand recovery and overall low-level stability in the near term. Follow-up attention should be paid to the sustainability of peak-season stocking and demand recovery progress for mainstream graphite grades.
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