Graphite Electrode Market Share, Outlook (2022 - 27)

04 Aug.,2022

 

graphite electrode uhp 500

Market Snapshot

Study Period: 2017-2027 Base Year: 2021 Fastest Growing Market: Asia-Pacific Largest Market: Asia-Pacific CAGR: 4.6 %

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Market Overview

The graphite electrode market was valued at USD 8,791.65 million in 2021, and it is projected to register a CAGR of 4.6% during the forecast period (2022-2027).

The graphite electrode market was affected negatively by the COVID-19 outbreak in 2020. However, with the resumption of operations in major end-user industries, the market 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 for 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.

Scope of the Report

Graphite electrodes are widely used for electric arc furnaces and melting furnaces in steel mills, silicon plants, and other factories. The market is segmented by electrode grade, application, and geography. 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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Key Market Trends

Electric Arc Furnace Segment to Dominate the Market

  • 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 surface of the sun. 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 in the recent past has boosted EAF mills’ costs. In China, the prices of graphite electrodes witnessed a growth of more than 700% in 2019 compared to 2017. As of February 16, 2022, the average price of the graphite electrode in China was CNY 20,818/ton, 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.
  • In conclusion, 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 Market

  • China holds the largest share in terms of the consumption and production capacity of graphite electrodes globally. Presently, there are more than 40 official graphite electrode producers in China, with 30 new entrants that make other refractory products, along with electrodes, observed in the past 2-3 years.​
  • Chinese manufacturers rushed to install capacity for graphite electrodes when the country began to commit heavily to higher rates of steel production via electric arc furnaces in 2017. 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 ton/year. ​
  • Chinese graphite electrode producers are making constant efforts to procure quality needle coke either via imports or through 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 proportion of China's electric furnace steel production is lower than the global average. Driven by policy factors, the proportion is expected to increase in the future, which may boost the demand for ultra-high-power graphite electrodes.
  • Therefore, the abovementioned factors are expected to drive the growth of the graphite electrodes market in China.

Competitive Landscape

The graphite electrode market is partially consolidated, with the top five players accounting for approximately 37% of the total market in terms of production capacity in 2021. Some of the key players include SHOWA DENKO KK, GrafTech International, Fangda Carbon New Material Co. Ltd, ZHONGZE GROUP, and Dan Carbon.

Major Players

  1. GrafTech International
  2. ZHONGZE GROUP
  3. Dan Carbon
  4. SHOWA DENKO KK
  5. Fangda Carbon New Material Co. Ltd

Recent Developments

  • 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 ton/per annum.
  • In January 2021, Tokai Carbon Co. Ltd merged its two companies, Tokai COBEX and Tokai Carbon Savoie, within the Tokai Carbon Group. This group is engaged in the manufacturing of electrode graphites.

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 Buyers

      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

    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 (%)/ Ranking 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 Technology 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 Nantong Yangzi Carbon Co. Ltd

      9. 6.4.9 Nippon Carbon Co. Ltd

      10. 6.4.10 SANGRAF International Inc.

      11. 6.4.11 SEC CARBON LTD

      12. 6.4.12 SHOWA DENKO KK

      13. 6.4.13 Tokai Carbon Co. Ltd

      14. 6.4.14 ZHONGZE GROUP

    5. *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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Frequently Asked Questions

What is the study period of this market?

The Graphite Electrode Market 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 4.6% over the next 5 years.

Which region has highest growth rate in Graphite Electrode Market?

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

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.

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