Aurelia Butler

Here is what analysts and companies are saying about the measure:IVAN LAM, SENIOR ANALYST, COUNTERPOINT RESEARCH:”In addition to China, other countries and regions also implement graphite export controls. Graphite has a wide range of applications in industry, and the demand for its use is growing. We believe that the average price of graphite will continue to rise in the future due to supply and demand imbalances, including Russia, which was one of the major graphite suppliers before the Russia-Ukraine war.”High-sensitivity graphite is a high-performance material with a wide range of applications in industries such as semiconductors, automobiles, aerospace, battery manufacturing, and chemicals.”However, this control is not a complete ban, and there has been no significant impact on any industry during the previous temporary control.”CHRISTOPHER RICHTER, DEPUTY HEAD OF RESEARCH, CLSA IN TOKYO:”It would be a bold step to cut off the world from graphite because I think the Chinese know that would bring EVs to a halt everywhere and probably would create escalation rather than de-escalation of some of the trade disputes going on with China – between the EU and China, between the US and China.”I think what it (Japanese industry) probably will do, since the graphite is still there, is any research that you’ve got going on that can look for alternatives… probably becomes a lot higher priority and generally the solution is as to A) look for alternative sources and B) look for alternative materials.”KANG DONG-JIN, ANALYST AT HYUNDAI SECURITIES IN SEOUL:”It’s not that China would suddenly stop export graphite, but it would be more intensely regulated and reviewed. It is still unclear how far China would take this graphite export curb, which would determine the supply chains. “With this new graphite export curb, South Korean firms – or South Korea in general, which heavily rely on China for graphite imports, would need to seek alternatives, such as mines from the United States or Australia, but it would likely increase cost burden for many.” ANDY LEYLAND, CEO OF SUPPLY CHAIN INSIGHTS: “Graphite markets have been in oversupply, with falling prices, so the export licences don’t make sense from a market standpoint. They will worry the West, however, and be a boon to up-and-coming producers outside China.“This is straight from China’s commodities playbook, and a direct response to moves in the West to legislate a move away from the country.”KIEN HUYNH, CHIEF COMMERCIAL OFFICER AT ALKEMY CAPITAL INVESTMENTS, WHICH DEVELOPS PROJECTS IN THE ‘ENERGY TRANSITION METALS SECTOR’:“This bold and unexpected move by China in graphite has taken us by surprise, arriving far sooner than anyone could have predicted. The juggernaut of the Chinese battery sector is moving forward at a blistering pace, outstripping the progress in Western markets. As they increase their consumption of the essential materials that Western battery manufacturers rely on, they tighten their grip on the industry.“This turbocharges the urgency for the West to forge their independent supply chains, charting a course toward self-sufficiency in both the raw materials and the downstream components necessary to meet their own ambitious battery industry growth strategies. The race is on, and the stakes have never been higher.” NEIL WILSON, CHIEF MARKET ANALYST AT BROKER FINALTO:”Tit for tat – China says it might restrict graphite exports for use in EV batteries. It comes just days after the White House blocked sales of certain chips to China. It’s Trade Wars 2.0 and it’s inflationary.” More

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.China has imposed export controls on graphite, a material used in electric vehicle batteries, as Beijing hits back at US-led restrictions on technology sales to Chinese companies.China, which dominates global supply chains for the mineral, will require special export permits for three grades of graphite, the commerce ministry and the General Administration of Customs said on Friday.The new export controls, which China said were introduced on “national security” grounds, are set to escalate geopolitical tensions between Beijing and Washington and its allies over tech supply chains. They also underline China’s dominance of global supplies of dozens of critical resources.Graphite for batteries can be produced either from mined material, which is called “natural” material, or in a “synthetic” process using petroleum feedstocks, which helps the cell charge quicker and last longer but is more expensive to produce. China is by far the biggest processor of natural graphite and generated almost 70 per cent of the world’s synthetic graphite last year, according to Benchmark Mineral Intelligence, making it one of the critical materials where Beijing has the tightest stranglehold.You are seeing a snapshot of an interactive graphic. This is most likely due to being offline or JavaScript being disabled in your browser.The move comes days after US president Joe Biden’s administration tightened controls on exports of cutting-edge artificial intelligence chips to China.Beijing criticised Washington for the controls. The Chinese commerce ministry on Wednesday said the “US constantly overstretches the concept of national security, abuses export control measures and turns to unilateral bullying acts, which China is strongly dissatisfied with and firmly objects to”.Japan said it would look into whether China’s latest measures were in accordance with World Trade Organization and other international rules. “We will take appropriate steps . . . if the measures are deemed unjust,” said chief cabinet secretary Hirokazu Matsuno on Friday, adding that the government will assess the impact of the export curbs. “We will check with the Chinese side on their intentions and operational policies of the measures.” Executives at companies in the graphite supply chain said they are scrambling to understand how the new export controls differ to existing ones on graphite introduced in 2006. Graphite prices have fallen 30 per cent since the start of the year but Thomas Kavanagh, head of battery materials at commodity data provider Argus, said the restrictions could set them on an “upward trajectory internationally”.While Chinese officials are wary of retaliation that could damage China’s own companies, Beijing in recent months has started to leverage its dominance over a vast array of materials and resources in response.In July Beijing announced similar restrictions on gallium and germanium, metals used in a number of strategic industries including electric vehicles, microchips and some military weapons systems. The government also cited national security concerns.However, those export restrictions are yet to significantly disrupt supply for non-Chinese manufacturers since they typically hold stockpiles. Bill Jackson, senior director at Indium Corporation, a New York-based supplier of materials to electronics companies, expected a “slow loosening [of restrictions by Beijing] and allowing of material back out”.The new controls also require companies to obtain additional permits, which does not equate to a ban but creates uncertainty for industries dependent on the Chinese products and requires handing over confidential commercial information. You are seeing a snapshot of an interactive graphic. This is most likely due to being offline or JavaScript being disabled in your browser.Graphite is the most common material used in the anode side of lithium-ion batteries because of its relatively low cost, high energy density and stable structure. The anode side of a battery releases electrons during discharge.Ross Gregory, a Seoul-based partner at consultancy New Electric Partners, said any ban on anode materials would be “incredibly significant”.“The whole of the car battery industry is dependent on anodes, and they nearly all come out of China,” he said. “It’s not that the rest of the world can’t catch up, they can, but it won’t happen overnight.”Hong Kong-listed shares of China Graphite Group gained 10.7 per cent on Friday following the announcement.Additional reporting by Will Lawrence-Brown in Hong Kong and Kana Inagaki in Tokyo More

NEW YORK (Reuters) – Federal Reserve Bank of Atlanta President Raphael Bostic said on CNBC Friday that while inflation remains too high it is coming down amid mounting evidence of an economic slowing, and that could open the door to easier monetary policy late next year. “We have to get a lot closer to 2% before we’re going to consider it, before I would consider any kind of relaxation of our posture. Inflation is job one, we have to get that under control,” Bostic said. But that’s possible next year, and “I would say late 2024” is on the table for an easing, Bostic said. The policymaker, who does not hold a vote on the rate setting Federal Open Market Committee this year but will next year, has said in recent remarks he believes the Fed is done raising rates. The central bank is broadly expected to hold the federal funds target rate range steady at between 5.25% and 5.5% at the Oct. 31-Nov. 1 meeting. Bostic said in the television appearance that information he’s picking up points to an economy which, while still possessing forward momentum, is losing speed. “When I talk to businesses, they all tell me the slowdown is coming,” Bostic said. “They expect that where we are today is a lot stronger than we will be six months from now,” he said, adding, “I’ve really taken that on board” when thinking about the current stance of monetary policy and how it will play out over coming months. Bostic also said in his appearance that he’s not expecting a recession. More

(Reuters) -Credit card giant American Express (NYSE:AXP) on Friday reported third-quarter profit that beat expectations, helped by resilient spending from its wealthy customers who shrugged off concerns about an economic downturn.AmEx, which caters to a premium customer base, has largely been able to mitigate the hit from inflation and the Federal Reserve’s rate hikes, which have made borrowing costly and reined in discretionary spending.In a sign of caution, however, AmEx boosted its provisions for credit losses to $1.23 billion, up 58% from last year, to account for the increased likelihood of consumers defaulting on their debt.Net write-off and delinquency rates, however, were below pre-pandemic levels, the company said. “It’s a bit of a business-as-usual quarter for us,” CFO Christophe Le Caillec said. “We see a lot of demand for our products and services coming from Gen Zs and Millennials. They are also signing up for premium products.”The resumption of student loan repayments in October has not changed spending patterns so far, the CFO said.AmEx reported a profit of $3.30 per share, up from $2.47 per share a year earlier. On average, analysts had expected a profit of $2.94 per share, according to LSEG IBES data. It also said its earnings per share and revenue for the full year would be in line with the prior forecast. The company has previously said it expects to earn $11 to $11.40 per share in 2023. “Travel and Entertainment (T&E) spending remained robust… Restaurant spending was again one of our fastest-growing T&E categories,” CEO Stephen Squeri said in a statement.Revenue, net of interest expense, surged 13%, to $15.38 billion. Consolidated expenses climbed 7%, to $11 billion, driven by higher customer-engagement costs. More