It is believed that the Graphite Electrode industry is driven by global steel production growth as well as demand from the construction industry. Graphite electrodes are utilized in EAF (Electric Arc Furnace) steelmaking. They melt raw and scrap materials into hot steel. Steel is then transformed into columns, beams, and girders to be employed in construction and bridges. In 2024, the industrial electrode segment accounted for nearly half of the market's volume and the value.
COVID-19 caused a global price rise and an astronomical increase in demand that increased the revenue of manufacturers for graphite electrodes. Since then, the industry has returned to pre-pandemic levels and will grow at a rapid growth rate as steel demand is projected to increase worldwide.
Other key drivers for market growth for the Graphite Electrode market are the growing construction sector and rapid global urbanization. This will increase the demand for steel, infrastructure and Graphite Electrodes.
Graphite Electrode producers are expanding the capacity of their production in order to meet the increasing demand. They are adopting the latest technologies in order to enhance the quality of their products and improve performance. Moreover, they are trying to reduce the environmental impact of their operations. They achieve this by using waste recycling programs and maintaining efficient energy usage.
The market is highly concentrated around 50% of global sales held by the top 5-6 players. Many regional producers, including Chinese (Jianglong Carbon, Jiexiu Jinsheng, and Qifeng) as well as Indian companies (SEC Surface Engineering and HEG's Graphite India, and Fangda Carbon), supply the domestic market and export it to regions.
Acquisitions and mergers are common in the graphite electrode industry and many businesses are looking to improve their manufacturing capabilities and offerings. For example, in 2015, GrafTech International was acquired by Brookfield Asset Management, which was looking to increase its capacity and expand into new market.
Despite the bright prospects for the graphite electrode business, there are some significant issues to face. Cost and availability are the main obstacles, specifically for premium petroleum coke or needle coke. The raw material that is used in the production of graphite electrodes is vital and is often expensive. The rising cost of energy also has an a direct impact on manufacturing price. Rising energy costs can significantly affect profitability and create volatility on the graphite electrodes market. This has become a major concern for the industry and should be taken care of by all major players in order to preserve their market share. The Graphite Electrode Industry expects to see these costs reduced and profits increase thanks to advances in technologies. The market for environmentally friendly products is also being driven by increased consumer awareness. Governments are implementing stringent regulations to control pollution and encourage sustainability. The result will be a rise in demand for environmentally friendly products. This will lead to an expansion of markets for Graphite Electrode market.
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