Graphite electrode market size should increase due the increased demand for steel. A transition from conventional production to sustainable practices, as well as the development and use of advanced electrode manufacturing technologies, are also expected to drive industry growth. Electric Arc Furnace Segment (EAF), with its significant share of the overall market, is predicted to dominate. EAF technology, which produces less environmental pollution compared to blast furnaces, is preferred by major manufacturers for steel production.
Moreover, an increasing focus on sustainability by governments across the globe has prompted new steelmaking techniques which are more cost-effective and eco-friendly. In turn, this has led to an increase in the demand for graphite raw materials that are used in EAF or BOF steelmaking. EAF steelmaking technology uses less energy than other methods of steelmaking. This reduces overall operating costs.
The industry is highly fragmented with the presence of several small and large players operating globally. GrafTech International and Graphite India Limited are among the key players investing heavily in developing advanced technologies. They also want to increase their product offerings and improve operational efficiency. To maintain their growth and to remain competitive, the companies are also expanding in regions that produce a lot of steel.
The graphite electrodes market has high entry barriers due to its specialized manufacturing processes. This can limit the number of new entrants to the industry, thereby resulting in increased consolidation. Recent strategic developments in the industry have included mergers and purchases by companies like Nouveau Monde Graphite Fangda Carbon New Material Co. Ltd. and Resonac Holdings Corporation.
The global market for graphite electrodes is intensely competitive. To be successful, companies need to find a balance between operational efficiency and technological innovation. As the industry is built on raw material such as petroleum coke needles and coal tar, changes in price can impact profitability. For this reason, they must improve their vertically integrated capabilities and establish captive facilities in order to secure reliable supplies of raw materials and to remain cost competitive. In order to provide customized solutions and improve customer service, they are also focused on building close relationships with their customers. They are also focusing on research and developments to improve the performance and durability of electrodes. This industry is still facing challenges. One of them is the change in steelmaking technology, which may reduce the requirement for graphite electrodes by providing an alternative to traditional blast oven technology. It may slow down the growth of the industry in time. The fluctuating price of raw materials may also lead to price wars or lower profits, which will reduce revenue. Lack of energy and resources also impedes the growth of the market. Nevertheless, emerging economies provide new opportunities for market.
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