Graphite Electrode is used in Electric Arc Furnace (EAF) steel production. Increasing industrial activities around the world increase the need for high quality electrodes. Furthermore, rising energy requirements and the adoption of EVs (electric vehicles) drive steel manufacturers to shift to EAF technology, which requires advanced electrodes. These factors contribute to the global growth in the steel industry.
The global market for graphite electrodes is characterised by fierce competition. Major companies adopt various strategies to gain competitive advantage. The strategies include product innovation and capacity expansion as well as strategic partnerships that will enhance their market presence. The companies are also focused on securing supplies of raw materials - especially needle coke - to ensure the stability of production.
HEG Limited (Graphite Electrodes), GrafTech International Ltd. (Graphite Electrodes), SANGRAF International Inc. and Resonac Holdings Corporation. are among the top players in this market. These companies rely upon advanced manufacturing technologies in order to create innovative products while improving production efficiency. The companies also aim to expand their presence on the EAF market globally in order to take advantage of the growing demand.
In order to enhance their position in the industry, many companies are enhancing their production capacities by investing in new plants and upgrading existing facilities. These improvements help them to meet the demand of EV-drivers as well as industrial applications and end-use industries. They are also focusing on safe and secure operation, which will reduce their operating expenses.
Recent expansions at graphite electrode plants have been announced by several leading companies. HEG, as an example, plans to expand its United States plant by December 2024 in order to meet the growing demand for this product and increase the overall capacity. This expansion will allow the company to maintain its leading position in the graphite electrode market.
Globally, the Graphite Electrode Market is capital-intensive. It requires significant investments in manufacturing technology. The factors above limit the entry into the market of new players, so it is likely to remain an oligopoly throughout the forecast period. This market is growing due to the rapid construction of infrastructures in Asia Pacific. These countries have a greater need for steel with superior quality. The EV revolution also pushes steel producers to switch from blast and ladle to EAF technology which requires advanced graphite electrodes.
Also, policy regulations can be a major driving force for the market. Globally, governments are placing greater emphasis on encouraging sustainable development and reducing CO2 emissions. As a result, they are imposing strict environmental laws on the graphite electrode industry. Some nations also impose anti-dumping duty on imported graphite electrodes. These tariffs are meant to protect domestic businesses from foreign goods dumping. This is also likely to raise the cost of production, which in turn is expected to curb market growth.
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