Graphite Electrode Market Size
| Study Period: | 2018-2028 |
| Fastest Growing Market: | Asia-Pacific |
| Largest Market: | Asia-Pacific |
| CAGR: | 5.59 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Graphite Electrode Market Analysis
The Global Graphite Electrode Market size is expected to grow from USD 9,645.01 million in 2023 to USD 12,659.50 million by 2028, at a CAGR of 5.59% during the forecast period (2023-2028).
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 (Asia-Pacific, North America, Europe, South America, the Middle East, and Africa). 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, market sizing and forecasts have been done based on volume (kilotons) 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 | |||||||
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Graphite Electrode Market Trends
The Electric Arc Furnace Segment to Dominate the Market
- An electric arc furnace (EAF) melts steel scrap, DRI (directly reduced iron), HBI (hot briquetted iron, which is compacted DRI), or pig iron in solid form to produce steel. On the EAF route, electricity provides the required power to melt the feedstock.
- Graphite electrodes are 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 recent price surge for graphite electrodes 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. However, the situation is expected to change due to the growing availability of steel scrap in the country and the government's policies supporting the use 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 downstream graphite electrode steel plants are in a recovery state. The graphite electrode stock is insufficient compared to previous years. With the resumption of steel plants, demand is expected to increase.
- According to the World Steel Association, the production of crude steel for 63 countries in the month of February 2023 was 142.4 million metric tons (Mt). In February 2023, the Middle East produced 3.5 million metric tons of crude steel. This was up by 11.5% as compared to the same period in 2022.
- As a result, there will be a rise in the price of graphite electrodes during the forecast period due to favorable demand, limited supply, and high cost.
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China to Dominate the Asia-Pacific Region
- The decision-making bodies in China have strongly supported EAF steelmaking technologies in their efforts to decrease carbon emissions and achieve sustainability in the nation's steel industry.
- China holds the largest share in terms of consumption and production capacity of graphite electrodes in the global scenario. At present, there are more than 40 official graphite electrode producers in China, with 30 new entrants that have added other refractory products, along with electrodes, to the market in the past 2–3 years.
- In March 2022, Xinyu Steel started constructing its 100-metric-ton EAF project. The new mill is expected to 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 with 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.
- 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.
- Hence, the above factors will lead to the growth of the studied market in China over the forecast period.
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Graphite Electrode Industry Overview
The graphite electrode market is partially consolidated. Some of the key players (not in any particular order) include GrafTech International, Resonac Holdings Corporation, Fangda Carbon New Material Co., Ltd., Zhongze Group, and Dan Carbon among others.
Graphite Electrode Market Leaders
GrafTech International
ZHONGZE GROUP
Dan Carbon
Resonac Holdings Corporation
Fangda Carbon New Material Co., Ltd
*Disclaimer: Major Players sorted in no particular order
Graphite Electrode Market News
- September 2022: HEG Limited announced it would 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).
- August 2022: HEG Limited announced an expansion project to increase graphite electrode production capacity from 80,000 tons to 100,000 tons. The company aimed to start commercial graphite electrode production at the new expansion site by early 2023.
Graphite Electrode Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Strong Demand For EAF Technology For Steelmaking
4.1.2 Rising Availability Of Steel Scrap In China
4.2 Restraints
4.2.1 Soaring Prices Of Needle Coke
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Steel Production Capacity by Country
5. MARKET SEGMENTATION (Market Size in Volume and Value)
5.1 Electrode Grade
5.1.1 Ultra High Power (UHP)
5.1.2 High Power (SHP)
5.1.3 Regular Power (RP)
5.2 Application
5.2.1 Electric Arc Furnace
5.2.2 Basic Oxygen Furnace
5.2.3 Non-steel Application
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 United Kingdom
5.3.3.3 France
5.3.3.4 Italy
5.3.3.5 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%) Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Dan Carbon
6.4.2 EPM Group
6.4.3 Fangda Carbon New Material Co., Ltd.
6.4.4 GrafTech International
6.4.5 Graphite India Limited
6.4.6 HEG Limited
6.4.7 Kaifeng Pingmei New Carbon Materials Technology Co., Ltd.
6.4.8 Nantong Yangzi Carbon Co. Ltd.
6.4.9 Nippon Carbon Co Ltd.
6.4.10 Resonac Holdings Corporation
6.4.11 SANGRAF International
6.4.12 SEC CARBON, LIMITED
6.4.13 Tokai Carbon Co., Ltd.
6.4.14 ZHONGZE GROUP
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Rising Production of Steel through EAF Technology in China
Graphite Electrode Market Research FAQs
What is the study period of this market?
The Graphite Electrode Market is studied from 2018-2028.
What is the growth rate of Graphite Electrode Market?
The Graphite Electrode Market is growing at a CAGR of 5.59% over the next 5 years.
What is Graphite Electrode Market size?
The Graphite Electrode Market is expected to reach USD 9645.01 million in 2023 and grow at a CAGR of 5.59% to reach USD 12659.50 million by 2028.
Which region has highest growth rate in Graphite Electrode Market?
Asia-Pacific is growing at the highest CAGR over 2018-2028.
Which region has largest share in Graphite Electrode Market?
Asia-Pacific holds highest share in 2022.
Who are the key players in Graphite Electrode Market?
GrafTech International, ZHONGZE GROUP, Dan Carbon, Resonac Holdings Corporation, 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 for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Graphite Electrode Report Snapshots
