Graphite Electrode can be used for conducting electricity as well as melting steel scraps in electric arc kilns. It is important to carefully ensure that the characteristics of the electrode are compatible with the specific steel plant. Choosing the right graphite electrodes can improve operational efficiency, improve productivity as well as reduce operational costs. However, purchasing a quality product is a significant purchase that demands carefully analyzed and judicious selection that is based on the long-term benefits of cost.
The graphite electrode market is driven by an increasing global demand for steel and an increased focus on sustainability. As a result, producers should continue investing into production technologies and processes that increase energy efficiency and are compatible with the environmental goals. It is crucial to establish cradle to grave life cycle analysis to help the manufacturing industry and its value chain, and the entire production chain.
Manufacturers must also ensure that they are safe for be used. To achieve this, manufacturers should conduct stringent tests, and adhere to the strictest health and safety regulations. This involves occupational exposure limits as well as strict handling protocols. Additionally, it is important to have an obligation to be responsible with raw material sourcing and waste management strategies designed to reduce the environmental impact.
For the main raw material for graphite electrode production the petroleum-derived needle coal (as carbon aggregate) is utilized. The coal tar serves as the binder. Major needle coke producers include petroleum refiners (in Saudi Arabia, the U.S., Japan, Russia) as well as coal chemistry companies (in China). Many large producers of graphite electrodes vertically integrate their operations by constructing their own cokemaking plants to ensure the quality and availability of raw materials. Others seek to diversify their supply sources through securing long-term supply contracts for needle coke as well as investing in other fuels.
Graphite electrodes, due to their dual purpose and dual use, are in the scope of Export Controls as per the Commerce Act. Exporters require a license from the government to ship the products. They are required to provide documentation including export agreements, the end-user as well as end-use certifications, profiles of both the exporter and the user and technical specifications as well as testing reports, and more. The issue of licenses for export will be scrutinized by concerned Chinese authorities. Any violations can result in fines, suspension of business, as well as revocation of any future export license applications.
As the graphite electrode industry is gaining momentum, major companies are expanding their capacity for production by acquiring as well as joint ventures. Companies are also expanding R&D to come up with innovative, efficient and effective products. As a result, many businesses offer customized electrodes that satisfy specific needs for example, those that are specific to particular steel mills or furnace types.
Graphite electrodes are typically distributed through business-to-business channels. They enter into agreements with the steelmakers and arc furnace operators who use them. Sales made through distributors and online channels make up a relatively small share of the market. Digital tools to procure will eventually boost online sales. However, B2B direct transactions are currently the predominant model in this industry.
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