the buy zone, page-240

I am hoping not, but you are correct more than likely people are running a ruler over Syrah at these prices. More than likely once the US - China trade deal is signed the demand for graphite will start increasing. Also electric car penetration is just 2% at the moment it needs to increase to 4% before we start seeing significant investment in battery metals by which time it would be to late. We just got to be patient let the market forces work itself out. On the positive side 250,000 tonnes production this year and 350,000 tonnes production next year and BAM ramping up from June onwards should all have a material impact on Syrah. If you look at the long term picture many of the graphite companies are not building anything and therefore for at least 2-3 years I do not see any significant new supply outside of China. Also cost of needle coke to make synthethic graphite is $4000 a tonne vs. $400-500 a tonne of graphite so as time passes more companies will start to retool to graphite processes to make electrodes.