The Graphite Electrode industry update provides key insights about the current market landscape, competition dynamics, and technology advancements. This report provides a detailed account of the production trends, capacity development, and import-export flow. This report includes regional analyses for North America and Europe, Asia-Pacific and Middle East & Africa. These include an analysis of the demand drivers, flows of investment, import-export accounts, and regional policies.
China's production and consumption will continue to dominate the market in 2023. EAF steelmaking processes require high-grade graphite electrodes with higher density than conventional ones.
In the area of green and circular products, SGL Carbon has developed partially recycled electrodes, which contain up to 25% reclaimed graphite material. These electrodes are used in silicon and non-structural applications to reduce waste and offset raw material consumption. Over the forecast period, this market segment is expected to grow substantially.
The graphite electrode market is dominated by mergers and purchases. Major companies are buying local producers to improve product availability and to gain access to more markets. Showa Denko acquired SGL GE Holding bringing together the two world's largest graphite electrode manufacturers. In the same year Tokai Carbon and its subsidiary Tokai Cobex merged and Ameri-Source's assets were acquired.
EAF steel requires graphite electrodes with advanced technology for increased productivity and environmental sustainability. These trends have pushed manufacturers to improve the quality of their products, resulting in cost savings for end-users. Companies are also increasing their service offerings to improve customer satisfaction and optimize support processes.
In spite of the COVID-19 epidemic, the global steel production rate recovered in 2023. This resulted in an increase in the consumption of EAF graphite electrodes. Producing innovative production methods and processing has been implemented to meet this growing demand. Some companies have shifted to fully integrated facilities that produce needle coke, graphite electrodes and other products. This allows them to maintain quality standards and offer long-term contracts.
Regional dynamics are influenced by the infrastructure of an industrial area, trends in steel manufacturing, and energy resources. Asia-Pacific has the highest consumption rate, mainly due to extensive EAF capabilities and an expanding demand for UHP Graphite Electrodes. In contrast, the mature steel industry in North America prioritizes sustainable production, aligning with increased hydraulic and UHP graphite electrode usage. Middle East & Africa are a small but promising market due to metallurgical development and investments.
The carbon-rich petroleum needle coke, or PNC, is obtained from the complex refinery process of cracking crude oil. PNC goes through further processing, which reduces impurities to improve its quality. This creates an opportunity for companies to offer products that are more environmentally-friendly and safer to use in EAF steelmaking processes. This includes improving quality, reducing emissions, and offering a range of additional features, such as thermal resistance and electrical conductivity.
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