PURELY PENNIES

[Mick Dodge]

USGT
China was responsible for the large decline in graphite prices in the 90s as a substantial amount of product was dumped on the market. This is unlikely to be repeated due to the phenomenal growth in the Chinese domestic steel industry which internally consumes a great deal of graphite. Furthermore, Chinese graphite is declining in quality and costs are increasing due to the effects of high grading, the fact that mines are getting deeper and older, and to tightening labor and environmental standards.