Graphite Electrode Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The graphite electrode market is expected to reach USD 9,222 million by the end of this year, and it is projected to register a CAGR of over 4.5% during the forecast period. The market was affected negatively by the COVID-19 outbreak in 2020.

New York, April 19, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Graphite Electrode Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06279502/?utm_source=GNW The graphite electrode market is expected to reach USD 9,222 million by the end of this year, and it is projected to register a CAGR of over 4.5% during the forecast period.The market was affected negatively by the COVID-19 outbreak in 2020. However, with the resumption of operations in major end-user industries, it recovered significantly in 2021.Key HighlightsIn the short term, the strong growth in steel production in emerging countries and the rising availability of steel scrap in China are expected to drive the market’s growth.On the flip side, soaring prices of needle coke are likely to hinder the growth of the studied market.The rising production of steel through electric arc furnace (EAF) technology in China is expected to act as an opportunity for the market in the coming years.The Asia-Pacific region is expected to dominate the market due to strong demand from China.Graphite Electrode Market TrendsThe Electric Arc Furnace Segment to Dominate the MarketAn electric arc furnace (EAF) melts steel scrap, DRI (direct reduced iron), HBI (hot briquetted iron, which is compacted DRI), or pig iron in solid form to produce steel. In the EAF route, electricity provides the required power to melt the feedstock.Graphite electrode is primarily used in the electric arc furnace (EAF) steelmaking process to melt steel scrap. Electrodes are made of graphite due to their ability to withstand high temperatures. In EAF, the tip of the electrode can reach 3,000º F, which is half the temperature of the sun’s surface. The size of electrodes varies widely from 75 mm to as large as 750 mm in diameter and up to 2,800 mm in length. Electric arc furnaces (EAF) in steel mills and iron and steel foundries commonly use UHP electrodes (usually 350 mm and larger) and HP and UHP electrodes (typically 400 mm and smaller), respectively.The price surge of graphite electrodes recently has boosted EAF mills’ costs. As of February 16, 2022, the average price of the graphite electrode in China was up by 5.17% from the beginning of the year and 44.48% from the same period last year.In China, EAF steel accounts for around 10% of the overall share in the current scenario. However, the situation is expected to change due to the growing availability of steel scrap in the country and the government policies supporting the usage of steel scrap. Due to such factors, the demand for graphite electrodes used for EAF applications is expected to increase steadily during the forecast period.The graphite electrode downstream steel plants are in a recovery state. The graphite electrode stock is insufficient compared to previous years. With the resumption of steel plants, its demand is expected to increase.According to the World Steel Association, crude steel production accounted for 1,951 million tons in 2021, compared to 1,878 million tons in 2020, thereby, supporting the demand for the studied market.Thus, driven by the favorable demand, tight supply, and high cost, the price of graphite electrodes is expected to rise, which will boost their demand during the forecast period.China to Dominate the Asia-Pacific RegionChina holds the largest share in graphite electrode consumption and production capacity globally. There are more than 40 official graphite electrode producers in China, with 30 new entrants making other refractory products, along with electrodes, observed in the past 2-3 years.?EAF steelmaking technologies have been strongly encouraged by the decision-making bodies in China to reduce carbon emissions and achieve sustainability in the country’s steel industry.? The production of vehicles in 2021 accounted for 2,60,82,220 units.In March 2022, Xinyu Steel started constructing its 100-metric-ton EAF project. The new mill will have a liquid steelmaking capacity of 1 million metric tons annually. ?Chinese graphite electrode producers are constantly trying to procure quality needle coke via imports or domestic procurement while securing technology for quality improvement. Chinese electrode manufacturers are also focusing on producing more UHP-grade graphite electrodes of sizes larger than 700 mm.?The National Development and Reform Commission (NDRC), China’s economic planning body, published a plan for the country’s resource recycling industry on July 7 this year to accelerate the development of a low-carbon circular economy. The plan included a goal for scrap usage in the steel sector to reach 320 million tons in 2025. In 2020, the NRDC said, scrap usage was around 260 million tons.Looking into the next decade, the share taken by EAF steel is estimated to reach 40% of global steel output, against 30% in 2020, with EAF steel in China at 25% of the country’s total in 2030, compared with around 10% last year, according to Fastmarkets’ steel research team.Graphite Electrode Industry OverviewThe graphite electrode market is partially consolidated. Some key players include SHOWA DENKO KK, GrafTech International, Fangda Carbon New Material Co. Ltd, ZHONGZE GROUP, and Dan Carbon.Additional Benefits:The market estimate (ME) sheet in Excel format3 months of analyst supportRead the full report: https://www.reportlinker.com/p06279502/?utm_source=GNWAbout ReportlinkerReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.__________________________