According to Roskill, flake graphite prices are expected to rise once again through Q2 2021 with new rounds of environmental inspections beginning across the Chinese provinces of Anhui, Guangxi, Henan, Hunan, Jiangxi, Liaoning, Shanxi and Yunnan.
Roskill says that concerns over supply availability following recent winter checkups and closures are likely to cause uncertainty in the industry
In the market analyst’s view, even though the inspections avoided flake production hubs in Heilongjiang and Shandong, concerns over supply availability following recent winter checkups and closures are likely to cause uncertainty in the industry.
Roskill points out that Inner Mongolia, another important area of flake production, is also seeing localized emissions crackdowns and that the eight provinces listed include Hunan, the major Chinese hub for amorphous production.
“Plants found to have very high emissions may be banned from applying for a pollution discharge license for up to three years,” the report states. “With the new Five-Year Plan 2021-2025 beginning this year, the new national pollutant discharge permit system being rolled out from March, and a spotlight on China during the 2022 Winter Olympics next year, tighter restrictions seem here to stay.”
