4.13.3.1Availability and Demand

In the past decade, all over the world, the graphite output has undergone a process from a slow decline to increases year by year and in general there has been an increasing trend. The graphite output in China in 1997 amounted to 1.6804 million tons, of which that of crystalline graphite was 0.1427 million tons. If we deducted the graphite products in the form of rough concentrates produced by part of township enterprises and sold to large and medium-sized enterprises and processed products of the stock, the actual available amount of graphite products was estimated at 1 million tons, of which that of crystalline graphite was about 0.3 million tons and that of cryptocrystalline graphite was about more than 0.6 million tons.

At present, the main consumption fields of graphite in China are as follows: iron and steel and foundry industry, refractory, electrical conducting materials, pencil cores, the graphite sealing materials for the chemical industry and automobile manufacturing industry. The structure of graphite consumption approximately is: refractory 10 percent, steel industry 30%, production of pencil cores 15%, electrical conducting material 10%, and sealing material 10%. Additionally, kinescope graphite emulsion, wire drawing graphite emulsion  die forging graphite emulsion, additives for energy saving and others account for 25%.

China's graphite products are of high quality and low price and the varieties of products are complete. They enjoy great prestige and a stronger competitive power in the international market. The graphite products have become one of the nonmetallic mineral products with the largest export volume. Export volume of graphite products reached only 13,800 tons in 1978, and it has been increased up to 158,300 tons in 1996 with an average annual increase rate of 14.52%. Export volume of graphite products reached 0.17 million tons in 1997. At present, China's crystalline graphite export volume accounts for 50 percent of the total in the international market, ranking first in the world. China's graphite products have been exported to more than 40 countries and regions. Japan is the largest graphite export market of China. The quantity of graphite imported from China in 1997 accounted for 33.7 percent of the gross export volume of China, the Republic of Korea takes 22.0% and the United States 9.0%. Thus, China is the largest graphite trade partner of Japan, the Republic of Korea and the United States, and occupies the leading place in the international graphite trade. The quantity of cryptocrystalline graphite exported from China is not large and is mainly exported to western Europe (about 40%) and Japan (about 30%). The cumulative volume of export from China in a period from 1990 to 1997 is about 1.2981 million tons, of which that of crystalline graphite is 0.7125 million tons.

4.13.3.2 Supply and Demand

An analysis of the general international graphite market shows that supply of cryptocrystalline graphite exceeds demand, and that he demand will not  likely  increase in the days to come greatly. The prices in the market will become stable day by day. However, the supply of crystalline graphite will fall short of demand, and the shortage of big-flake crystalline graphite will be still larger. It is estimated that volumes of demand of crystalline graphite in the world will exceed 0.8 million tons in 2000.

According to the analysis, China will face more problems and opportunities in respect to export and import of graphite. A waver situation may rise in the world's iron and steel industry. The demand for crystalline graphite in the international market is expected to increase, but the increase rate will not be too great. In recent years graphite outputs in India and Mexico have increased. More and more graphite produced by Canada, Norway, Madagascar, Mozambique and Zimbabwe, pour into the international market. China's exports of crystalline graphite are facing challenge of these producing countries of crystalline graphite, and the situation is not optimistic. Yet China's graphite still has highly competitive power in quality, pricing and prestige. It is estimated that within a relatively long period of time the leading position of Chinese crystalline graphite in the international market will not be changed, and that at the same time the export volume of graphite manufactured products and cryptocrystalline graphite will be increased. It is expected that China's graphite export volume will top 0.2 million tons in 2000, of which that of crystalline graphite will reach 0.1 million tons.

At present there are no detailed statistics of graphite supply and sales in China. An analysis depending on part of statistical data shows that in general graphite supply exceeds demand in China. A large amount of products are kept in stock due to poor quality and bad sales.

With progress in sciences and technology, especially development of high technology, graphite materials possessing excellent performances have broad prospects in high-speed, wear-resistance, anti-corrosion, energy-saving and super miniaturization Hi-tech application fields. China as one of the countries with abundant graphite resources and large-scale production has had an industrial foundation of considerable large scale. In recent years, through introduction of technology and independent research and development, China has obtained great development in graphite processing and development of manufactured products, and the sealing materials and expandable graphite have entered the international market. During the eighth Five-Year Plan period China achieved standardization and domestication of the production technology and equipment of micropowder and super-micropowder graphite. During the ninth Five-Year Plan period the investment for the graphite industry has been increased, and taking the state-owned enterprises as the leading force and putting gradually the mergence and share-holding system into practice, China will form international advanced comprehen-sive graphite export bases and further consolidate and enlarge the international market.

In respect of environmental protection, because the production operations of crushing, screening and classification, drying, transportation, packaging and ultrafinely grinding and processing in graphite mills are accompanyed by the emergence of dust, most of graphite mills take measures to prevent dust. There are two kinds of dust collection, dry and wet. The main points of the dry method are to seal the source of dusting, clean the dust bearing air and to ensure that the dust concentration in all dust emerging points falls within the limits fixed by the government. The dust containing sewage in the wet collector of the crushing workshop, solid particle in the tailing water from graphite mill and high-carbon workshop, all kinds of reagents and acid-base solution are permitted to be discharged only after their precipitation, decomposition and neutralization. The development of harmless new technologies which can reduce or control the industrial sewage will be taken as the direction for sustainable development of the graphite industry.