Metals production and steel requires graphite electrode. It is a highly oligopolistic market with few new competitors and requires significant investments to establish manufacturing factories. The expansion of this market and its capital requirements, has been primarily driven through the expansion in the steel industry. The rapid shift from blast and ladle furnaces to electric arches (EAF) for steelmaking which requires high-performance graphite electrodes that emit less carbon dioxide and lower carbon dioxide emissions, has driven the demand for the product. Ultra-high-power EAFs with large capacities will likely to see the fastest growth of sales over the forecast period.
The growing the use of graphite electrodes for the production of lithium-ion batteries is expected to increase the market worldwide for these batteries and. They are utilized in a variety of applications that include laptops, mobile phones, and even electric automobiles. The Graphite Electrode market is expected to expand over the next few years, especially in Asia-Pacific as industrialization and steel manufacturing capacities grow in these nations.
The global Graphite Electrode Market strongly connected to the advancements in electrode technology and the status of the steel industry. In many regions, the COVID-19 outbreak slowed the production of steel. It also led to a decline in demand for graphite electrodes. The world's iron and steel market is recovering quickly, and the demand for iron and steel in the construction, automotive and machinery sectors remains high.
With the shift to sustainable and green production methods, the graphite electrode market will continue to thrive. The major players in the market are investing heavily into modern technologies, building strong relationships with the end users, and encouraging sustainable practices in production. In addition, they are also focused on extending their supply chains, which will reduce the chance of interruptions to raw materials supplies and ensure an uninterrupted production flow.
The Electric Arc Furnace (EAF) segment dominates the graphite electrode market, commanding 71% of total share in 2024. The dominance of this segment is driven by the shift of steel producers towards EAF technology instead of the traditional blast furnace. The growing steel demand across Asia-Pacific is also expected to increase the demand for graphite electrodes. This is because of the infrastructure growth.
The Asia-Pacific market is responsible for an important portion of the global graphite electrode industry. Rapid industrialization in countries like China and India is the main reason for this rapid growth. The steel industry is the biggest user of graphite electrodes since they're required to melt waste metal to create new steel. The Asia-Pacific metal market anticipated to continue growing rapidly because the world shifts towards EAF for the production of steel. This is particularly true in China as well as India. The trend is also expected to increase the demand for petroleum-based graphite derived from coke needles, which is a key raw material in the production of EAF graphite electrodes.
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