Graphite electrode market is projected to grow at a rate of about 2% between 2024-2029. The market is driven primarily by the growing adoption of electric cars and the growth of the Lithium-ion Battery Industry, both of which require large amounts of graphite for production. In addition, growing diversification of applications in non-steel industries such as glass and chemicals are also driving the growth of this market. The success of this market depends on companies' ability to balance operational efficiency with innovation and sustainability initiatives. The leading players have enhanced their position by increasing product offerings and strengthening relationships with the end-users.
Graphite electrodes are used to fabricate metals in a range of processes. They have many uses across industries such as steel, glass and chemical processing. The major application for this product is in the Electric Arc Furnace (EAF) steelmaking process which accounts for over 65% of total global graphite electrode usage. The EAF sector is currently experiencing a boom in demand, due to an increase of steel production and investments made in greener technologies. This has led to an increase in the consumption of ultra high power (UHP), or graphite, electrodes.
China will represent 50% of the global demand for graphite electrodes in 2024. China's massive industry is driving the country's steel production. The EAF capacity in China will reach 650,000,000 tons in 2023. This has resulted in a large increase in the usage of UHP graphite and other types, such as hydraulic or RP.
Europe and North America have also shifted their steel production toward EAF. This is driving the use of UHP graphite electrodes. This, along with the emphasis on sustainable steel manufacturing, is driving growth in both hydraulic and RP electrodes.
Around 15% of the market is devoted to mechanical graphite electrodes, which are based on friction and pressure for electrical contact. These electrodes are usually used for resistance heating in smaller furnaces. They also have a shorter life span than their counterparts with higher power, which makes them less popular. This type electrode is ideal for applications where temperature control is important, such as in specialty silicon or phosphorus melts.
The Graphite Electrode market is fragmented by numerous international and domestic producers with varying technological capabilities and production facilities. Several major players are focused on optimizing production cost to stay competitive while maintaining high standards in quality and performance. These players are also implementing technologies such as digitalization and energy efficiency in order to reduce operational expenses. A few other players are leveraging their global presence to expand their footprint in emerging markets. They are focusing on building stronger connections with their end-users through technical collaboration, and offering services like process optimization and technical support. These players also invest in advanced infrastructure and establish partnerships with raw material suppliers, to improve their supply chain globally. Graphite Electrode is a highly competitive market and pressures to compete are expected. These products are likely to be more expensive.
English
Write a Message