While this will further the cause of many graphite juniors who emphasise the importance of diversifying supply chains, it also raises questions over China's ability to feed any potential short-term recovery in the market; particularly considering the current suspension in Shandong's production.
Heilongjiang is the largest flake graphite producing region in China with a capacity of 280,000 tpa, however there have been mounting suspicions internationally that reserves are being depleted and only a very small proportion of output from the region is large flake material.
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