Issue link: http://resourceworld.uberflip.com/i/1190748
D E C E M B E R / J A N U A R Y 2 0 2 0 www.resourceworld.com 19 seen at 75,000 tonnes by 2020 and around 85,000 in 2025. GRAPHITE Supply-side shortages combined with growing battery and electrode demand kept prices for graphite high this year. China continues to dominate graphite pro- duction and demand. Almost all stages of the lithium-ion battery manufacturing chain are focussed on China and China is by far the largest and most rapidly grow- ing market for lithium-ion batteries. Both synthetic and natural graphite compete for use in lithium-ion battery anodes, along with an increasing amount of needle coke and other existing car- bon materials. Demand for raw material graphite in battery applications is forecast to grow by 17-23%py over the decade between 2017 and 2027. Prices could strengthen again going forward as demand for electrodes ramps up from the Chinese Electric Arc Furnace (EAF) industry. China began switching much of its steel production to EAF from 2017 and is expected to increase the rate of this change as more end-of-life steel becomes available. Currently, less than 10% of Chinese crude steel is produced in EAFs, but this could grow to 25% or more over the next decade. Meanwhile, the availability of needle coke continues to hamper the supply-side of the electrode industry. IRON ORE Chinese steel demand is forecast to grow just 1% next year, compared with this year's projected growth of 7.8%, accord- ing to the World Steel Association, which blamed the ongoing trade conflict between China and the US and cutbacks in Chinese steel production as a result of stricter anti- pollution plans. Iron ore's spot and futures prices have slumped more than 20% from July's five- year peaks, also because of signs that global production has stabilized after a tailings dam disaster in Brazil early this year tightened supplies. COAL Coal supplies a third of all energy used worldwide and makes up 38% of electric- ity generation, as well as playing a crucial role in industries such as iron and steel. Despite legitimate concerns about air pollution and greenhouse gas emissions, coal use will continue to be significant in the foreseeable future. DIAMONDS According to De Beers, a drop in the realized rough diamond price was a contributing factor in a 27% diamond earnings decrease for the company in the first half of 2019 with the average realized rough diamond price slipping 7% to US $151/carat from US $162 in 2018. De Beers said ongoing trade tensions between the US and China depressed mar- COMMODITIES OUTLOOK