Natural graphite market in Eastern Europe (including Northern Asia)

Earlier Report Observations

The natural graphite market in Eastern Europe experienced notable shifts between 2018 and 2022. Market volume grew from 47 274 t in 2018 to 53 214 t in 2019, driven primarily by rising imports as domestic production faced technological backwardness and high costs, reducing competitiveness. The COVID-19 pandemic in 2020 triggered an economic crisis, slashing market volume to 38 193 t. A modest recovery followed in 2021, but volume remained near 38 000 t through 2022 as intensified sanctions, logistical disruptions, and soaring raw material prices constrained the market.

From 2023 onward, the market showed signs of recovery with a rebound in domestic production, fueled by private sector activity and a sharp increase in exports to China. New investment emerged, including plans for production at the Omsk refinery and testing at the Soyuz deposit. Concurrently, the market saw the development of new product segments such as high-purity and spheroidized graphite for lithium-ion batteries, stimulated by global trends like electric vehicle adoption and the transition to alternative energy sources.

Structural challenges persisted throughout the period, including reliance on imported equipment, technological lag, and high logistics costs due to remote production bases in Siberia and the Urals. These factors kept domestic production costs elevated, with imports maintaining a 20-30% share of sales as consumers often preferred higher-quality foreign alternatives.

Production natural graphite in Eastern Europe (including Northern Asia)

In kind, 2017-2020, t

Top producers of natural graphite, 2017-2020

World map of production of natural graphite, 2017-2020

Natural graphite production in Eastern Europe (including Northern Asia) fell for the third year in a row. In 2020, the region produced 30 600 tonnes, which represents a 16.4% decrease from the previous year. Looking at the period from 2017 to 2020, production dropped by 33%, with an average annual decline of 12.5%.

Annual dynamics of production in Eastern Europe (including Northern Asia) in kind, 2017-2020, t

Exports natural graphite from Eastern Europe (including Northern Asia)

Exports in kind, t

Following two years of decline, Eastern Europe (including Northern Asia) saw its natural graphite export volumes rise. In 2020, exports reached 10 596 tonnes, up 15.2% compared to the previous year. However, over the 2017-2020 period, exports fell by 47.4%, with an average annual decrease of 19.3%. The lowest point was in 2019, with 9 199 tonnes, and the sharpest drop occurred that same year at 42.4%.

Annual dynamics of product's exports from Eastern Europe (including Northern Asia) in kind, 2017-2020, t

From 2017 to 2020, Germany, Austria, and Italy were the top three markets for exports in kind, collectively accounting for 55.0% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Eastern Europe (including Northern Asia) in kind, 2017-2020

Exports in value, K $ US

Natural graphite exports from Eastern Europe (including Northern Asia) declined for the third consecutive year. In 2020, export value stood at 10 594 thousand US dollars, a significant drop of 17.7% from the year before. Between 2017 and 2020, exports decreased by 31.6%, translating to an average annual rate of decline of 11.9%.

Annual dynamics of product's exports from Eastern Europe (including Northern Asia) in value, 2017-2020, K $ US

Throughout 2017–2020, Germany, Italy, and Austria remained the leading markets in value terms, together making up 53.2% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Eastern Europe (including Northern Asia) in value, 2017-2020

Imports natural graphite to Eastern Europe (including Northern Asia)

Imports in kind, t

After two years of growth, natural graphite imports into Eastern Europe (including Northern Asia) declined. In 2020, imports totaled 18 189 tonnes, down 29.5% from the previous year. Over the 2017-2020 period, imports decreased by 14.2%, with an average annual decline of 5.0%. The peak was in 2019 at 25 813 tonnes, and the largest increase occurred that same year at 11.2%.

Annual dynamics of product's imports to Eastern Europe (including Northern Asia) in kind, 2017-2020, t

Between 2017 and 2020, China, Brazil, and Germany were the main suppliers of natural graphite to Eastern Europe (including Northern Asia) in kind. China accounted for 31.2% of imports, Brazil for 11.5%, and Germany for 8.2%, together representing 50.9% of total imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Eastern Europe (including Northern Asia) in kind, 2017-2020

Imports in value, K $ US

Following two years of growth, natural graphite imports into Eastern Europe (including Northern Asia) fell. In 2020, import value was 53 563 thousand US dollars, a 10.8% decrease from 2019. However, from 2017 to 2020, imports increased by 109.1%, with an average annual growth rate of 27.9%. The highest value was recorded in 2019 at 60 081 thousand US dollars, and the largest increase happened in 2018 at 63.8%.

Annual dynamics of product's imports to Eastern Europe (including Northern Asia) in value, 2017-2020, K $ US

From 2017 to 2020, Japan, China, and South Korea continued to be the primary suppliers of natural graphite to Eastern Europe (including Northern Asia) in value terms. Japan contributed 26.0% of imports, China 21.0%, and South Korea 18.5%, collectively forming 65.5% of total imports in value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Eastern Europe (including Northern Asia) in value, 2017-2020