Insights

Why the Syrah (ASX:SYR) share price is tumbling 7% lower today

It hasn’t been a good day for Syrah’s shares…
The post Why the Syrah (ASX:SYR) share price is tumbling 7% lower today appeared first on The Motley Fool Australia. –

The Syrah Resources Ltd (ASX: SYR) share price looks set to end the week with a disappointing decline.

In early trade, the graphite producer’s shares are down over 7% to $1.17.

Why is the Syrah share price sinking on Friday?

The weakness in the Syrah share price on Friday has been driven by the release of an announcement this morning.

According to the release, the company has been struggling to ship its product from the Balama Graphite Operation in Mozambique due to container ship shortages.

The release explains that approximately 12kt of natural graphite sales from Balama were planned to ship from the Port of Nacala in late September. However, container shipping market disruption means that this has been delayed to October.

As a result of this disruption, third quarter natural graphite sales are only expected to be 17kt. This compares to its previous guidance of 29kt for the quarter.

One positive, though, is that the weighted average sales price for the September quarter is expected to be higher than the June quarter.

Another positive is that management expects container shipping constraints impacting its sales and operations to ease through the fourth quarter. It notes that additional vessel capacity and container equipment for East Africa is being added.

This may allow the company to take advantage of the strong demand and forward contracting for Balama products it is experiencing. Management advised that its sales order book is currently underpinning 45kt of natural graphite sales in the fourth quarter. Furthermore, there is additional spot sales demand evident.

Looking further ahead, management appears confident that demand will remain elevated for some time to come. This is due to outlook for electric vehicle and anode demand remaining strong. It highlights that monthly global electric vehicle sales reached 0.5 million units in August, which represents over 100% growth year on year. Whereas Chinese anode production was ~60kt in August, up 50% over the prior corresponding period.

The Syrah share price is up 19% in 2021 despite today’s decline.

The post Why the Syrah (ASX:SYR) share price is tumbling 7% lower today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Syrah right now?

Before you consider Syrah, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Syrah wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Syrah Resources (ASX:SYR) share price slumps on US$24.9 million loss

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!