The main factor affecting the profit level of special graphite industry is the market supply and demand. In terms of demand, special graphite is a new material encouraged and supported by the national policy. The industry has a wide range of applications, and the downstream industries are in the rising stage. Therefore, the demand for

 special graphite will continue to grow; In terms of supply, because the industry has a high threshold of entry, the number of enterprises in the industry remains stable, and there will be no explosive growth in supply. The improvement of industrial policies, raw material costs, production processes, product technology and product added value of enterprises in the industry will become the key factors to determine the future profit level of enterprises.

Since 2017, with the in-depth implementation of China's supply side structural reform, the carbon industry, including the special graphite industry, has experienced a round of "reshuffle". A number of enterprises with small production scale, backward production technology, and high comprehensive energy consumption have been out of the market, while the demand of downstream industries continues to rise. The short-term imbalance between supply and demand has led to the continuous rise of the market price of special graphite, and the profit level of the carbon industry has improved significantly. Since 2019, with some special graphite enterprises adjusting their product structure, increasing environmental protection investment and restoring capacity, the supply and demand relationship of special graphite has been gradually restored, and the price of special graphite has fallen back and recovered its stability.