The tide is out...., page-13

I don't think china is manipulating graphite prices at all.  The predicament Syrah faces has to do with economics.  Shanshan's new 100ktpy anode plant can manufacture synthetic graphite from waste material from other Chinese industries. So law of supply and demand dictates natural graphite price. If they cannot attract chinese away from synthetic graphite, prices for natural graphite will remain down.

Talk that China wont have enough graphite for future demand is perhaps misguided.  Next generation lithium batteries using silicon are starting to be manufactured. I read a news report that Shanshan has built a 4,000 t/a SiC (silicon) anode production line. Also Sila Nanotechnologies in US is funding a SiC anode production line in partnership with BMW.  Lithium-Silicon has a theoretical peak capacity 10x higher than Lithium-graphite. So will start to impact sales of Lithium-graphite in coming years.  China could have more than enough supplies of synthetic graphite until silicon dominates.

So Syrah has to reduce production costs to tease the Chinese into buying natural graphite. If they can win a major contract with a major Chinese player (Shanshan etc) the s/p should respond accordingly.  That's a gamble I'm not prepared to make.  But if Syrah does achieve in getting a major contract I will be happy for all you punters.  Wish you all luck.