Graphite Electrode Market Size & Share Analysis

Graphite Electrode Market Size

Study Period: 2017-2027 Fastest Growing Market: Asia-Pacific Largest Market: Asia-Pacific CAGR:

>

4.5 %

Major Players

*Disclaimer: Major Players sorted in no particular order

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Graphite Electrode Market Analysis

The graphite electrode market is expected to reach USD 9,222 million by the end of this year, and it is projected to register a CAGR of over 4.5% during the forecast period.

The market was affected negatively by the COVID-19 outbreak in 2020. However, with the resumption of operations in major end-user industries, it recovered significantly in 2021.

• In the short term, the strong growth in steel production in emerging countries and the rising availability of steel scrap in China are expected to drive the market's growth.
• On the flip side, soaring prices of needle coke are likely to hinder the growth of the studied market.
• The rising production of steel through electric arc furnace (EAF) technology in China is expected to act as an opportunity for the market in the coming years.
• The Asia-Pacific region is expected to dominate the market due to strong demand from China.

Graphite Electrode Industry Segmentation

Graphite electrodes are typically made using premium petroleum needle coke, coal tar pitch, and some additives. Graphite electrodes find applications in the manufacture of steel and other non-ferrous metals through the electric arc furnace and the ladle furnace routes. The market is segmented by electrode grade, application, and geography. By electrode grade, the market is segmented into ultra-high power (UHP), high power (SHP), and regular power (RP). By application, the market is segmented into electric arc furnaces, basic oxygen furnaces, and non-steel applications. The report also covers the size and forecast for the graphite electrode market in 15 countries across regions. For each segment, the market sizing and forecasts have been done based on volume (kiloton) and revenue (USD million).

Electrode Grade Ultra High Power (UHP) High Power (SHP) Regular Power (RP) Application Electric Arc Furnace Basic Oxygen Furnace Non-steel Application Geography Asia-Pacific China India Japan South Korea Rest of Asia-Pacific North America United States Canada Mexico Europe Germany United Kingdom France Italy Rest of Europe South America Brazil Argentina Rest of South America Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa

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Graphite Electrode Market Trends

This section covers the major market trends shaping the Graphite Electrode Market according to our research experts:

The Electric Arc Furnace Segment to Dominate the Market

• An electric arc furnace (EAF) melts steel scrap, DRI (direct reduced iron), HBI (hot briquetted iron, which is compacted DRI), or pig iron in solid form to produce steel. In the EAF route, electricity provides the required power to melt the feedstock.
• Graphite electrode is primarily used in the electric arc furnace (EAF) steelmaking process to melt steel scrap. Electrodes are made of graphite due to their ability to withstand high temperatures. In EAF, the tip of the electrode can reach 3,000º F, which is half the temperature of the sun's surface. The size of electrodes varies widely from 75 mm to as large as 750 mm in diameter and up to 2,800 mm in length. Electric arc furnaces (EAF) in steel mills and iron and steel foundries commonly use UHP electrodes (usually 350 mm and larger) and HP and UHP electrodes (typically 400 mm and smaller), respectively.
• The price surge of graphite electrodes recently has boosted EAF mills’ costs. As of February 16, 2022, the average price of the graphite electrode in China was up by 5.17% from the beginning of the year and 44.48% from the same period last year.
• In China, EAF steel accounts for around 10% of the overall share in the current scenario. However, the situation is expected to change due to the growing availability of steel scrap in the country and the government policies supporting the usage of steel scrap. Due to such factors, the demand for graphite electrodes used for EAF applications is expected to increase steadily during the forecast period.
• The graphite electrode downstream steel plants are in a recovery state. The graphite electrode stock is insufficient compared to previous years. With the resumption of steel plants, its demand is expected to increase.
• According to the World Steel Association, crude steel production accounted for 1,951 million tons in 2021, compared to 1,878 million tons in 2020, thereby, supporting the demand for the studied market.
• Thus, driven by the favorable demand, tight supply, and high cost, the price of graphite electrodes is expected to rise, which will boost their demand during the forecast period.

China to Dominate the Asia-Pacific Region

• China holds the largest share in graphite electrode consumption and production capacity globally. There are more than 40 official graphite electrode producers in China, with 30 new entrants making other refractory products, along with electrodes, observed in the past 2-3 years.​
• EAF steelmaking technologies have been strongly encouraged by the decision-making bodies in China to reduce carbon emissions and achieve sustainability in the country’s steel industry.​ The production of vehicles in 2021 accounted for 2,60,82,220 units.
• In March 2022, Xinyu Steel started constructing its 100-metric-ton EAF project. The new mill will have a liquid steelmaking capacity of 1 million metric tons annually. ​
• Chinese graphite electrode producers are constantly trying to procure quality needle coke via imports or domestic procurement while securing technology for quality improvement. Chinese electrode manufacturers are also focusing on producing more UHP-grade graphite electrodes of sizes larger than 700 mm.​
• The National Development and Reform Commission (NDRC), China’s economic planning body, published a plan for the country’s resource recycling industry on July 7 this year to accelerate the development of a low-carbon circular economy. The plan included a goal for scrap usage in the steel sector to reach 320 million tons in 2025. In 2020, the NRDC said, scrap usage was around 260 million tons.
• Looking into the next decade, the share taken by EAF steel is estimated to reach 40% of global steel output, against 30% in 2020, with EAF steel in China at 25% of the country’s total in 2030, compared with around 10% last year, according to Fastmarkets’ steel research team.

Graphite Electrode Industry Overview

The graphite electrode market is partially consolidated. Some key players include SHOWA DENKO KK, GrafTech International, Fangda Carbon New Material Co. Ltd, ZHONGZE GROUP, and Dan Carbon.

Graphite Electrode Market Leaders

1. GrafTech International

2. ZHONGZE GROUP

3. Dan Carbon

4. SHOWA DENKO KK

5. Fangda Carbon New Material Co. Ltd

*Disclaimer: Major Players sorted in no particular order

Graphite Electrode Market News

• In September 2022, HEG Limited announced to commission its graphite electrode capacity expansion in Madhya Pradesh, India, by December 2022. The total capital expenditure for expanding the graphite electrode capacity to 100 kilotons per annum from 80 kilotons per annum accounted for INR 1,200 crore (~USD 156.30 million).
• In April 2021, Nantong Yangzi Carbon Co. acquired Xufeng Carbon Technology Co. Ltd to expand its production capacity of ultra-high power graphite electrodes up to 60,000-100,000 tons per annum.

Graphite Electrode Market Report - Table of Contents

1. 1. INTRODUCTION

   1. 1.1 Study Assumptions

   2. 1.2 Scope of the Study

2. 2. RESEARCH METHODOLOGY

3. 3. EXECUTIVE SUMMARY

4. 4. MARKET DYNAMICS

   1. 4.1 Drivers

      1. 4.1.1 Strong Growth in Steel Production in Emerging Countries​

      2. 4.1.2 Rising Availability of Steel Scrap in China

   2. 4.2 Restraints

      1. 4.2.1 Soaring Prices of Needle Coke

      2. 4.2.2 Other Restraints

   3. 4.3 Industry Value Chain Analysis

   4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

   5. 4.5 Steel Production Capacity by Country

5. 5. MARKET SEGMENTATION (Market Size in Volume and Value)

   1. 5.1 Electrode Grade

      1. 5.1.1 Ultra High Power (UHP)

      2. 5.1.2 High Power (SHP)

      3. 5.1.3 Regular Power (RP)

   2. 5.2 Application

      1. 5.2.1 Electric Arc Furnace

      2. 5.2.2 Basic Oxygen Furnace

      3. 5.2.3 Non-steel Application

   3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

         1. 5.3.1.1 China

         2. 5.3.1.2 India

         3. 5.3.1.3 Japan

         4. 5.3.1.4 South Korea

         5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

         1. 5.3.2.1 United States

         2. 5.3.2.2 Canada

         3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

         1. 5.3.3.1 Germany

         2. 5.3.3.2 United Kingdom

         3. 5.3.3.3 France

         4. 5.3.3.4 Italy

         5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

         1. 5.3.4.1 Brazil

         2. 5.3.4.2 Argentina

         3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

         1. 5.3.5.1 Saudi Arabia

         2. 5.3.5.2 South Africa

         3. 5.3.5.3 Rest of Middle-East and Africa

6. 6. COMPETITIVE LANDSCAPE

   1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

   2. 6.2 Market Share (%) Analysis

   3. 6.3 Strategies Adopted by Leading Players

   4. 6.4 Company Profiles

      1. 6.4.1 Dan Carbon

      2. 6.4.2 EPM Group

      3. 6.4.3 Fangda Carbon New Material Co. Ltd

      4. 6.4.4 GrafTech International

      5. 6.4.5 Graphite India Limited

      6. 6.4.6 HEG Limited

      7. 6.4.7 Kaifeng Pingmei New Carbon Materials Technology Co. Ltd

      8. 6.4.8 Linghai Hongfeng Carbon Products Co. Ltd

      9. 6.4.9 Nantong Yangzi Carbon Co. Ltd

      10. 6.4.10 Nippon Carbon Co Ltd.

      11. 6.4.11 SANGRAF International Inc.

      12. 6.4.12 SEC CARBON LTD

      13. 6.4.13 SHOWA DENKO K.K.

      14. 6.4.14 Tokai Carbon Co. Ltd

      15. 6.4.15 ZHONGZE GROUP

   *List Not Exhaustive

7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

   1. 7.1 Rising Production of Steel through EAF Technology in China

**Subject to Availability

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Graphite Electrode Market Research FAQs

What is the study period of this market?

The Graphite Electrode Market is studied from 2017 - 2027.

What is the growth rate of Graphite Electrode Market?

The Graphite Electrode Market is growing at a CAGR of >4.5% over the next 5 years.

Which region has highest growth rate in Graphite Electrode Market?

Asia-Pacific is growing at the highest CAGR over 2017-2027.

Which region has largest share in Graphite Electrode Market?

Asia-Pacific holds highest share in 2021.

Who are the key players in Graphite Electrode Market?

GrafTech International, ZHONGZE GROUP, Dan Carbon, SHOWA DENKO KK, Fangda Carbon New Material Co. Ltd are the major companies operating in Graphite Electrode Market.

Graphite Electrode Industry Report

Statistics for the 2023 Graphite Electrode market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Graphite Electrode analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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