Investing in Graphite
Graphite is an allotrope of carbon. It is the precursor for the production of graphene. Graphite has properties of both metals and nonmetals, which makes it suitable for many industrial applications. The metallic properties include electrical and thermal conductivity. The nonmetallic properties include high-thermal resistance, inertness, and lubricity. The combination of conductivity and high-thermal stability allows graphite to be used in many applications, such as in batteries, fuel cells, and refractories. Graphite’s lubricity and thermal conductivity make it an excellent material for high-temperature applications because it provides effective lubrication at a friction interface while furnishing a thermally conductive matrix to remove heat from the same interface. Electrical conductivity and lubricity allow its use as the primary material in the manufacture of brushes for electric motors. A graphite brush effectively transfers electric current to a rotating armature while the natural lubricity of the brush minimizes frictional wear. Today’s advanced technology products, such as friction materials and battery and fuel cells, require high-purity graphite. Natural graphite is purified to 99.9% carbon content for use in battery applications.
Domestic Production and Use: Although natural graphite was not produced in the United States in 2010, approximately 90 U.S. firms, primarily in the Northeastern and Great Lakes regions, used it for a wide variety of applications. The major uses of natural graphite in 2010 were estimated to be foundry operations and steelmaking combined, 32%; refractory applications and crucibles combined, 31%; brake linings, 8%; lubricants, 3%; and other applications, 26%.
Recycling: Refractory brick and linings, alumina-graphite refractories for continuous metal castings, magnesia-graphite refractory brick for basic oxygen and electric arc furnaces, and insulation brick led the way in recycling of graphite products. The market for recycled refractory graphite material is growing with material being recycled into products such as brake linings and thermal insulation.
Recovering high-quality flake graphite from steelmaking kish is technically feasible, but not practiced at the present time. The abundance of graphite in the world market inhibits increased recycling efforts. Information on the quantity and value of recycled graphite is not available.
Import Sources (2006–09): China, 46%; Mexico, 23%; Canada, 21%; Brazil, 6%; and other, 4%.
Events, Trends, and Issues: Worldwide demand for graphite was very weak during the last quarter of 2008 and in the first half of 2009, owing to the global recession’s impact on the industrial sectors that use it. However, during the second half of 2009 worldwide demand for graphite began a slow increase, which continued steadily throughout 2010. Principal import sources of natural graphite were, in descending order of tonnage, China, Mexico, Canada, Brazil, and Madagascar, which combined, accounted for 98% of the tonnage and 90% of the value of total imports. Mexico provided all the amorphous graphite, and Sri Lanka provided all the lump and chippy dust variety. China and Canada were, in descending order of tonnage, the major suppliers of crystalline flake and flake dust graphite.
During 2010, China produced the majority of the world’s graphite, and China’s graphite production is expected to continue growing. In recent years, Canada has opened a number of new graphite mines, and this trend is expected to continue through the next few years.
Advances in thermal technology and acid-leaching techniques that enable the production of higher purity graphite powders are likely to lead to development of new applications for graphite in high-technology fields. Such innovative refining techniques have enabled the use of improved graphite in carbon-graphite composites, electronics, foils, friction materials, and special lubricant applications. Flexible graphite product lines, such as graphoil (a thin graphite cloth), are likely to be the fastest growing market. Large-scale fuel-cell applications are being developed that could consume as much graphite as all other uses combined.
World Resources: Domestic resources of graphite are relatively small, but the rest of the world’s inferred resources exceed 800 million tons of recoverable graphite.
Substitutes: Manufactured graphite powder, scrap from discarded machined shapes, and calcined petroleum coke compete for use in iron and steel production. Finely ground coke with olivine is a potential competitor in foundry facing applications. Molybdenum disulfide competes as a dry lubricant but is more sensitive to oxidizing conditions.
Graphite Producers
Archer Exploration (ASX: AXE) - Sugarloaf graphite deposit in South Australia
Cal Graphite
China Carbon Graphite Group
Focus Metals (CVE: FMS) - Lac Knife graphite property in Quebec
GrafTech International (NYSE: GTI) - http://www.graftech.com/
Graphite India (BOM: 509488)- http://www.graphiteindia.com/
MEGA Graphite
Northern Graphite Corp. (CVE: NGC) - Bissett Creek Project in Ontario
ontario Graphite
Toyo Tanso Co. (TYO: 5310) - Special graphite products
Tokai Carbon Co. (TYO: 5301) - Graphite electrodes
Graphite News
2011-07-09 - (mi) - Sand coated with graphite oxide filters water better
2011-07-07 - (bw) - World graphite industry undergoing revival
2011-07-05 - (mc) - Long-term bets: Bhavin Shah picks Graphite India, HCL Tech
2011-07-05 - (mc) - See upside in Graphite India: Equirus Securities
2011-07-04 - (im) - Magnesite and graphite explored in South Australia
2011-06-30 - (mw) - Focus Metals to expand drilling at its Lac Knife graphite property
2011-06-28 - (im) - Canadian graphite boosted as miner receives final funding
2011-06-28 - (im) - Price briefing: Zircon marches on; chromite, graphite and soda ash prices expect H2 boost
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