China's flake graphite producers allowed inventories to fall below normal levels ahead of the country's Spring Festival celebrations.
Industry sources in Heilongjiang province, China's largest flake graphite producing region, told IM Data that uncertainties surrounding the market entering 2014 caused companies to close down operations earlier than usual for the national holidays.
Low steel production figures for the final month of 2013 have compounded prospects of falling domestic demand in the year ahead. Air pollution concerns saw steel output in Beijing fall throughout December while the World Steel Association has forecast the country's production growth to fall to 3% in 2014.
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