David Skarica: With graphite, you have to look at the big picture story. There is no exchange-based market. There is no graphite traded on London Metals Exchange. Instead, you have to understand the long-term, underlying fundamentals and the supply/demand picture. The demand picture is this: A lot of high-tech products use graphite ?especially rechargeable batteries for cars and electronics. In addition, carbon fiber is a source of demand because a lot of cars in the future will use carbon fiber to save weight. The new Boeing 787 jumbo jet uses significant carbon fiber to reduce weight and save on fuel. Carbon fiber is used extensively in military equipment. Demand for carbon in these unique applications will be growing.

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