Graphite & Graphene Conference

Transcription

1 Industrial Minerals Graphite & Graphene Conference December 8, 2015 Graphite & Graphene Conference December 9, 2014 Gerard P. Hand Gerry Hand, Superior Graphite

2 Topics Brief Introduction to SGC Global Economic & Regulatory Factors Effecting Graphites Influence of Graphites by Application Electrodes, Synthetic & Natural Graphites Issues Conclusions 2

3 What is Superior Graphite Privately held ESOP Mid-Size Company Global in Reach Unique High Temperature Technology Granular, Powder, Liquids & Shapes 8 Production Facilities 4 R&D Facilities Involved in Graphite since

4 Main Questions How has weakened demand affected major synthetic producers? Price and Performance comparison with natural graphite products How are prices affected by some end-markets becoming dumping grounds? Are there any new products coming onto the market? 4

5 Factors Effecting the Graphite Market General economic conditions Regulatory restrictions Health of the major markets that use Synthetic and Natural Graphites 5

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7 Regulatory Issues Reach regulations CARB (harbinger for upcoming U.S. regulations) Necessary and beneficial, but adds time and cost to our products 7

8 Health of Major Markets for Graphite Steel & Iron Energy Applications Li-Ion Batteries Alkaline Batteries Fuel Cells Friction Materials Drilling Materials 8

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11 Global Alkaline Battery Revenue Source: various sources

12 Fuel Cell Shipments? Source: The Fuel Cell Industry Review 2015 CAGR of 29%

13 CGAR: 2.9% 13

14 Market News & Developments Source: American Metals Market, Nov. 10,2015

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17 Longer Range Price Forecast 17

18 Effect of Weakened Demand on Producers Electrode Production Secondary Synthetic Production Primary Synthetic Production 18

19 Effect on Electrode Producers Electrode production is devastated as overcapacity has hit all markets Pricing at levels not seen for years Steel Market is down by 1.7% in 2015 Steel Market forecast is projected to grow by only 0.7% in 2016 Not much of a recovery foreseen 19

20 Effect On Secondary Synthetic Production Steel production capacity utilization is only ~74% As a byproduct of Electrode production, the amount of secondary synthetic is down. Graphitized Petroleum Coke (GPC) continues to encroach on the carbon raiser markets 20

21 Pricing Effected by Dumping Tactics Refractories, due to the immense demand, command the lowest prices for both natural and synthetic graphite, keeping pricing for those grades at very low levels Electrode prices are lower than I can remember, and show no sign of recovering due to over supply by China and India 21

22 Pricing Effected by Dumping Tactics The recarberizer market prices are experiencing downward pressure due to encroachment by the Graphitized Petroleum Coke (GPC) coming mainly from China 22

23 Drilling Materials Market Under Siege Drilling Materials are under pressure Oil Prices are lower than they have been since February of 2009 Rig count is roughly 50% of what it was in 2014 Mergers and acquisitions are occurring with the largest producers Forecasts vary, but not optimistic 23

24 Price/Performance of Natural vs Synthetic Depends heavily on the application In L-Ion batteries Synthetic has advantages in high temperature storage life, but is high in price Natural has better capacity & cycle life, and lower price but lower high/low temperature capacity and lower storage life 24

25 Price/Performance of Natural vs Synthetic In Alkaline batteries there is a split between Primary Synthetic and Purified Natural Graphite. C&D cells are dominated by natural AA & AAA are split between Primary and Specialty Naturals, which are more expensive, but deliver better performance 25

26 New Products Coming on the Market High purity natural graphites making inroads in high performace markets (primarily energy) FLG (Few Layers of Graphite) products are being developed and may find a place where Graphene are very expansive, and not readily available Highly Resilient Purified Coke 26

27 Conclusions Electrodes face an uphill battle in the years to come Secondary Synthetic also faces a difficult time, as the major markets such as Steel, Iron, and Drilling Materials are down, and don t show much indication of recovery Energy & Friction Materials show promise of growth 27

28 Conclusions Some healthy markets do exist Primary Synthetic and Purified Natural Graphites have good opportunities in growing markets Li-Ion Batteries Fuel Cells Friction Materials 28

29 Conclusions To be sure there are more challenges ahead, but as always, I know the global graphite industry will be up for the challenge! 29

30 Thank You For Your Kind Attention!