Graphite electrode demand is expected to increase at a fast rate during the forecast period. The demand for graphite is being driven by the increasing steel production in developing countries, as well as industrialization and infrastructure developments. Graphite electrodes are a key component of Electric Arc Furnaces that are used in steel production. Steel producers aim to increase the capacity of EAFs, in order reduce costs overall and boost efficiency.
A growing number of investments are being made in the research and development for new production methods, which is helping to boost the market growth. In 2021, Talga, the Norwegian graphite company, will construct a new factory to produce battery-grade synthetic Graphite. Vianode is also opening a commercial pilot facility in Kristiansand to increase its production capacity. The Graphite Electrode Market is driven by the emergence of new technologies such as electric vehicles (EVs), as each EV needs significant amounts of graphite to be used as an anode.
COVID-19 was a pandemic that affected the steel industry growth in emerging countries. The steel industry is a major consumer of graphite electrodes, and it suffered a loss of output due to logistical delays and disruption in supply chain. Despite the challenges, this industry is recovering and growing again.
The Graphite Electrode (GE) market in Asia Pacific is expanding rapidly. As a major producer of steel, the region's demand for this essential metal is expected grow. This increased demand will boost production of electrodes made from graphite, which is a vital ingredient in EAFs. The construction boom in China as well as India also contributes to this market's growth.
The market for steel is growing significantly in South America and developing countries in the MEA. They are rapidly expanding, and the infrastructure they need requires a large amount of metal. This will result in a greater demand for high-quality, graphite-electrode steel. These governments are implementing strict regulations for pollution control, sustainability and steel manufacturing.
The Basic Oxygen Furnace segment (BOF), which currently holds the largest share of the market, is expected to maintain its dominance over the forecast period. BOF steel offers many benefits including lower energy usage and is more environmentally-friendly than conventional blast furnace. BOF steel production is increasing globally, owing to the expansion of existing plants and investment in new facilities in developing economies.
Tier-2 players are important contributors to the UHP graphite market. This is due to their superior performance and competitive prices. These companies can source low-cost raw materials, like petroleum needle coal. In addition, the companies are able offer flexible capacity and customized solutions to their clients. The success of the segment relies on a business's capability to balance efficiency with innovation in technology and sustainability.
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