Graphite Electrode Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Graphite Electrode Market Analysis

The Graphite Electrode Market size is estimated at 1.67 thousand kilotons in 2025, and is expected to reach 1.98 thousand kilotons by 2030, at a CAGR of 3.55% during the forecast period (2025-2030).

The graphite electrode industry is experiencing a significant transformation driven by the global steel sector's shift toward sustainable production methods. This evolution is particularly evident in the increasing adoption of Electric Arc Furnace (EAF) technology, which, according to recent data from April 2024, commands approximately 42.5% (459 MTPA) of global steelmaking capacity. The industry's commitment to sustainability is further demonstrated by major steelmakers worldwide announcing plans to transition from traditional blast furnaces to electric arc furnaces. This shift is reshaping the demand dynamics for graphite electrodes, as EAF technology requires these components as essential consumables in the steelmaking process.

The market is witnessing substantial technological advancements in electrode systems and applications, particularly in response to the growing demand for larger diameter and higher performance electrodes. According to industry reports, as of July 2023, approximately 43% of planned steelmaking capacities were designated for EAF technology, marking a significant increase from the previous year's 33%. This trend is driving manufacturers to invest in research and development to improve electrode quality, durability, and performance, while simultaneously working to optimize production processes to meet the increasing demand from modern steel plants.

Raw material dynamics and supply chain considerations are playing an increasingly crucial role in shaping the market landscape. The availability and quality of key raw materials, particularly needle coke, continue to influence production capabilities and pricing strategies. The industry is witnessing a notable trend in recycling and resource optimization, with China's steel scrap usage reaching 215.31 million tons in 2022, demonstrating the growing importance of sustainable resource management in the sector. This focus on resource efficiency is prompting manufacturers to develop innovative solutions for material utilization and waste reduction, leveraging graphite materials for enhanced sustainability.

The market is experiencing significant diversification beyond its traditional steel industry applications, particularly in the glass and chemical sectors. The European glass industry, for instance, reported production volumes of 39.5 million metric tons in 2022, while China's float glass exports reached 1,336,107 tons in 2023, indicating robust demand from non-steel sectors. This diversification is driving manufacturers to develop specialized electrode grades tailored for specific applications, leading to increased investment in research and development for novel products. The expansion into new applications is creating additional growth opportunities while helping reduce the market's historical dependence on the steel industry. The role of industrial graphite in these sectors is becoming increasingly prominent, further broadening the scope of the graphite electrode market.

Graphite Electrode Market Trends

Strong Demand for EAF Technology for Steelmaking

The steelmaking industry is witnessing a significant shift towards Electric Arc Furnace (EAF) technology, driven by its superior environmental performance and operational efficiency. According to the Global Steel Plant Tracker statistics from April 2024, EAF technology commands a significant 42.5% share of global steelmaking capacity, equivalent to approximately 459 MTPA. This transition is further reinforced by the International Energy Agency's roadmap, which emphasizes the need for EAF steelmaking to comprise 53% of global steel production by 2050 to achieve net-zero emissions. The technology's appeal lies in its ability to reduce CO2 emissions by 75% compared to traditional methods, while offering greater flexibility in production and raw material usage, including the use of electric arc furnace electrodes.

Major steel producers worldwide are making substantial investments in EAF technology, demonstrating the industry's commitment to sustainable steelmaking. In January 2024, Tata Steel UK announced plans to construct a new electric arc furnace facility while decommissioning its existing blast furnaces, with a substantial investment of GBP 1.25 billion (~USD 1.59 billion). Similarly, in February 2024, South Korean steelmaker POSCO initiated the construction of a 2.5 MTPA EAF facility at its Gwangyang Works, investing KRW 600 billion (USD 451.94 million). These developments are complemented by ArcelorMittal's June 2023 announcement to build a new EAF facility at its Belval site in Luxembourg, aimed at enhancing energy efficiency and boosting steel capacity by 15%. The Global Energy Monitor's report in July 2023 highlighted that 43% of planned steelmaking capacities were slated for EAF technology, marking a significant increase from the previous year's 33%.

The increasing use of graphite electrodes in EAF technology is also contributing to the demand, as they play a crucial role in the steelmaking process.

Rising Availability of Steel Scrap in China

China's steel industry is experiencing a transformative phase with increasing availability and utilization of steel scrap, driven by government policies and industry initiatives. The Bureau of International Recycling reports that despite a 4.8% year-on-year decline in recycled steel usage for steelmaking in 2022, reaching 215.31 million tons, China continues to demonstrate a strong commitment to expanding its scrap utilization. This commitment is evidenced by the Chinese government's maintenance of a 40% customs duty on scrap exports in 2024, a strategic move aimed at ensuring domestic availability and promoting local scrap usage in steel production. The Metallurgical Mines Association of China projects that by 2025, China's steel scrap usage will reach approximately 330 million tons, accounting for an estimated 30% of steel production.

The increasing availability of steel scrap in China is further supported by comprehensive infrastructure development and policy frameworks. China is establishing large-scale integrated centers for eco-friendly sorting, treatment, and distribution of iron, steel, and non-ferrous metal scrap, focusing on enhancing recycling ratios of key strategic metals. According to SteelOrbis, seven Chinese government departments have proposed an ambitious target of achieving over 20% electric arc furnace (EAF) utilization in steel production by 2030, representing a significant shift from the current landscape where EAF steel holds a 9.5% share in China's steel market. This transition is particularly noteworthy as China's steel sector witnessed a surge in the share of recycled steel in crude steel production, reaching 22.2% in 2022, demonstrating the industry's growing acceptance of scrap-based steelmaking.

The graphite electrode price trends are also influenced by the rising demand for EAF technology in China, as they are a critical component in the operation of furnace electrodes systems.

Segment Analysis: ELECTRODE GRADE

Ultra High Power (UHP) Segment in Graphite Electrode Market

The Ultra High Power (UHP) graphite electrode segment dominates the global graphite electrode market, commanding approximately 70% of the market share in 2024. This segment's prominence is primarily attributed to its superior performance characteristics, including exceptional electrical conductivity, mechanical strength, and resistance to thermal shock. UHP graphite electrodes are particularly crucial in electric arc furnaces with current density exceeding 25 A/cm2, making them indispensable for high-quality steel production. The segment's growth is further bolstered by the increasing adoption of large-capacity ultra-high power arc furnaces across the steel industry, driven by the need for improved work efficiency and cost reduction. Additionally, these electrodes demonstrate remarkable dimensional stability and oxidation resistance, making them ideal for smelting high-quality alloy steels and other materials in both DC/AC ultra-high power electric arc furnaces and ladle refining furnaces.

High Power (SHP) Segment in Graphite Electrode Market

The High Power (SHP) graphite electrode segment represents a significant portion of the graphite electrode market, with manufacturers focusing on optimizing production costs while maintaining performance standards. This segment is projected to experience steady growth at a rate of approximately 2% during the forecast period 2024-2029. The growth is primarily driven by the segment's ability to bridge the gap between high-power and ultra-high power variants while offering cost advantages through reduced needle coke content in its raw material mix. SHP electrodes are particularly valued in ultra-high-power electric arc furnaces and refining furnaces, where they demonstrate high current resistance, superior discharge rates, and excellent dimensional stability. The segment's expansion is further supported by its strong presence in emerging markets and its application versatility across various steel production processes.

Remaining Segments in Electrode Grade

The Regular Power (RP) graphite electrode segment, while smaller in market share, continues to serve specific niche applications in the graphite electrode market. These electrodes, also known as molded graphite columns, are primarily utilized in regular power EAFs with a maximum current density of 17 A/cm2. Despite their moderate thermal conductivity, RP graphite electrodes maintain their relevance in applications requiring moderate power inputs, particularly in electric furnace steelmaking and metallurgical casting. The segment's value proposition lies in its cost-effectiveness for specific applications, making it a practical choice for certain steel manufacturers operating at lower power requirements or those engaged in specialized production processes.

Segment Analysis: APPLICATION

Electric Arc Furnace Segment in Graphite Electrode Market

The Electric Arc Furnace (EAF) segment dominates the global graphite electrode market, commanding approximately 71% of the total market share in 2024. This significant market position is primarily driven by the increasing adoption of EAF technology in steel production, particularly due to its environmental benefits and operational flexibility. The segment's dominance is further reinforced by major steel manufacturers worldwide transitioning from traditional steelmaking methods to EAF technology. Several key developments support this trend, including Tata Steel UK's announcement in January 2024 to establish a new electric arc furnace facility with a capacity of 3 MTPA, and ArcelorMittal's unveiling of plans to construct a new EAF facility at its Belval site in Luxembourg. Additionally, POSCO's initiation of a 2.5 MTPA EAF facility construction at its Gwangyang Works demonstrates the growing preference for this technology. The segment is also experiencing the fastest growth rate in the market, driven by increasing environmental regulations and the steel industry's push toward decarbonization.

Basic Oxygen Furnace Segment in Graphite Electrode Market

The Basic Oxygen Furnace (BOF) segment represents a significant portion of the graphite electrode market, with applications primarily in ladle furnaces for secondary steel refining. This segment's growth is supported by ongoing developments in steel production facilities, particularly in emerging economies. In September 2023, the market witnessed plans for 75 new BOF plants, predominantly in Asia. India's announcement to add around 80 million tons of steel production capacity by 2030, with 66% through the BF-BOF route, exemplifies this trend. The segment's expansion is further evidenced by BOF facilities in Asia and Latin America accounting for over 73% of the tonnage volume in capacity expansions, according to the Organization for Economic Co-operation and Development (OECD). These developments indicate a steady growth trajectory for the BOF segment in the graphite electrode market.

Remaining Segments in Application

The Non-steel Application segment, while smaller in market share, plays a vital role in the graphite electrode market by serving diverse industries beyond steel production. This segment encompasses applications in non-ferrous metal smelting, particularly in electrolytic copper and aluminum production, where graphite electrodes act as crucial conductive components. The segment also serves the chemical industry for electrolysis, electrodeposition, and electrochemical processing, especially in the chlor-alkali sector. Additionally, graphite electrodes find applications in power generation, glass manufacturing, semiconductor production, and wastewater treatment, demonstrating the versatility and expanding scope of graphite electrode applications beyond traditional steel manufacturing.

Graphite Electrode Market Geography Segment Analysis

Graphite Electrode Market in Asia-Pacific

The Asia-Pacific region dominates the global graphite electrode market, driven by rapid industrialization and extensive steel manufacturing capabilities. Countries like China, India, Japan, and South Korea form the backbone of the region's market, while emerging economies such as Malaysia, Thailand, Indonesia, and Vietnam contribute to its dynamic growth. The region's market is characterized by strong domestic production capabilities, particularly in China and India, along with significant investments in electric arc furnace (EAF) technology for steel production. The presence of major manufacturers and the ongoing shift towards sustainable steel production methods further strengthen the region's market position.

Graphite Electrode Market in China

China maintains its position as the largest market for graphite electrodes in the Asia-Pacific region, holding approximately 53% of the regional graphite electrode market share in 2024. The country's dominance is supported by its extensive steel production capacity and the presence of over 40 official graphite electrode producers. China's strategic emphasis on electric arc furnace (EAF) steelmaking technology, coupled with government initiatives promoting sustainable production methods, continues to drive market growth. The country's commitment to achieving higher steel production rates via EAF technology has prompted manufacturers to rapidly expand their graphite electrode capacities.

Graphite Electrode Market in India

India emerges as the fastest-growing market in the Asia-Pacific region, with a projected growth rate of approximately 5% during 2024-2029. The country's market expansion is driven by its position as the world's second-largest steel producer, with a steel capacity exceeding 161 million tons annually. India's growth trajectory is further supported by significant investments in capacity expansions by major manufacturers like HEG Ltd and Graphite India Limited. The country's push towards sustainable steel production, exemplified by projects like Tata Steel's upcoming low-carbon green steel plant, continues to boost demand for graphite electrodes.