Graphite Electrode Market Size, Trends, Demand, Analysis, Share ...

Graphite Electrode Market Size

The global graphite electrode market size was valued at USD 14.30 billion in  and is projected to reach from USD 14.89 billion in  to USD 20.54 billion by , growing at a CAGR of 4.1% during the forecast period (-).

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The global graphite electrode market is being driven by the growing usage of batteries in various applications, which are known to improve battery performance when combined with graphite electrodes. A shift toward electric arc furnaces from conventional blast furnaces, owing to their advantages, is expected to boost market growth.

Large, cylindrical graphite electrodes are typically manufactured with coal tar pitch, premium petroleum needle coke, and some additives. They transform electrical energy from the power source into heat for melting scrap metal. As a result of graphite's high thermal conductivity and low electrical resistance, these electrodes can produce heat as hot as 1,600 degrees Celsius. Graphite Electrode is primarily utilized in Electric Arc Furnaces (EAF) and Blast Oxygen Furnaces (BOF) to produce steel and melt ferrous alloys. These electrodes produce high-quality goods with high electrical conductivity, withstand high heat dissipation, and exhibit exceptional mechanical strength.

Graphite Electrode Market Growth Factors

Rising demand to enhance battery performance

The graphite electrode market is driven by the demand for graphite in numerous applications, lithium-ion batteries being one of the most significant. Lithium-ion batteries are extensively utilized in electric vehicles (EVs), portable electronics, and renewable energy storage systems. Therefore, advancements or enhancements in lithium-ion battery technology have the potential to significantly impact the graphite electrode industry.

In this context, substituting 15% of graphite with Ionisil in a water-based CMC/SBR binder system yields electrodes with a stable capacity of 740 mAh/g greater than three times that of a pure graphite anode. This increased capacity significantly improves the performance of lithium-ion batteries, allowing for longer battery life and greater energy storage capabilities. Thus, the trend mentioned above drives the expansion of the global graphite electrode market.

Growing preference for eaf (electric arc furnaces)

EAFs have become a popular alternative to conventional blast furnaces due to their energy efficiency, adaptability, and reduced environmental impact. EAFs are ideal for the production of specialty steels and the recycling of scrap metal. Consequently, the global adoption of EAFs has increased significantly. This increase in EAF steel production has directly increased the demand for graphite electrodes, essential to the EAF steelmaking process. For instance, India has been concentrating on increasing its steel production capacity and has set an ambitious goal of 300 million tons by . India is actively adopting EAF technology to achieve this objective, significantly increasing demand for graphite electrodes.

Market Restraining Factors

Soaring prices of needle coke

Needle coke is a specialty-grade petroleum coke with good quality for making electrodes. Needle coke is a primary material for graphite electrodes in an electric furnace. Coal-based needle coke is produced from coal tar, and compared to petroleum-based needle coke, they have excellent physical properties such as a low coefficient of thermal expansion and low electric resistance, along with less spalling and less breakage.

China is a major graphite electrode-producing and exporting country, and its price trends affect global graphite electrode prices. Prices for high-power and ultra-high-power electrodes were high in because of the higher prices of needle coke. Uncertainty in crude oil prices has led to price volatility of needle coke as it is a derivative of crude oil. Such high price trends of needle coke are acting as a restraint to the graphite electrode market.

Market Opportunities

Rising availability of steel scrap in China

Approximately 40% of the world's steel production is derived from recycled steel scrap. The employment of steel scrap results in a reduction of carbon dioxide (CO2) emissions by 58%. Scrap consumption in China is increasing rapidly, owing to the shutdown of sub-standard steel capacities after realizing the hazardous effects of carbon dioxide emissions caused by induction furnaces. This movement has helped China shift toward the surging use of electric arc furnaces (EAF) for steel production. According to official figures, the country imported 552,892 tons of steel scrap in , an increase of 1,938% from .

China is expected to increase its steel scrap usage by 23% to 320 million tons by to meet its climate commitments. With China rapidly trying to increase its steel production through EAFs, which require graphite electrodes, the market for graphite electrodes is expected to rise in the country in the coming years. Using EAF would promote steel scrap over virgin ore. The increase in EAF production is projected to increase steel scrap usage in the country and is likely to generate tremendous opportunities for the growth of the graphite electrode market.

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Regional Insights

Asia-pacific: dominant region

Asia-Pacific is the most significant global graphite electrode market shareholder and is expected to grow substantially during the forecast period. The development in the Asia-Pacific region can be attributed to the expanding steel industries in China and India. Graphite electrodes are a crucial component of the steel manufacturing process. They are the primary heat source in electric arc furnaces to smelt waste metal and create new steel. Rapid infrastructure growth in these nations increases the steel demand, ultimately fueling market growth over the forecast period. For instance, according to secondary research, China allocated RMB 3.65 trillion (USD 573 billion) in SPBs to local administrations in , of which 97% had been issued by December 15, . In addition, the Asia-Pacific region is anticipated to experience tremendous development over the forecast period due to the increasing investments of regional industry players. For instance, in October , JSW Steel invested INR 150 billion to construct a steel plant in Jammu and Kashmir and fuel manufacturing in the region. Thus, the factors above support market expansion over the forecast period.

North America is predicted to expand significantly over the forecast period. North America, particularly the United States, has a well-developed manufacturing infrastructure, which supports the development of the graphite electrode market. The region has sophisticated manufacturing facilities, knowledge, and technologies for producing graphite electrodes. These established capabilities enable North American manufacturers to efficiently produce high-quality graphite electrodes for industries like steel, aluminum, and electric vehicles. In addition, the regional expansion is a result of rising steel production. In , the American iron and steel industry contributed over USD 520 billion in revenue and nearly two million jobs to the U.S. economy, according to an estimate. These employees earned nearly USD 130 billion in compensation and benefits. The total federal, state, and local taxes collected by the sector was USD 56 billion. A robust manufacturing infrastructure fosters competitiveness, innovation, and efficiency in the production process. It also enables manufacturers to meet domestic demand and expand export capacities, contributing to market expansion.

Europe: fastest growing region

Europe is anticipated to experience tremendous global growth over the next few years. The presence of developed nations like Germany and the U.K. is expected to boost regional market growth. Germany is one of the top ten producers of steel in the world. In March , the crude steel output from its mills was 3.8 million tons, an increase of 14.8% yearly. In , the country produced 40.1 MMT of crude steel, up 12.3% from 35.7 MMT in . From January to March , steel production increased to 10.2 million tons, up by 3.2% compared to the same period in . Such trends are likely to expedite the growth of the market. Similarly, the key participants in the region are involved in partnerships, mergers, and acquisitions to strengthen their market position. For instance, in March , Jingye Group, a leading Chinese steelmaker, completed the acquisition of British Steel's U.K. assets. Jingye Group has pledged to invest GBP 1.2 billion to make British Steel more competitive and sustainable. These factors propel the regional market growth.

In South America, Brazil is one of the largest manufacturers and suppliers of Graphite electrodes. Global steel production has increased due to high consumer demand and other end-use industries. According to the local steel institute Aço Brasil, in September , the Brazilian production of crude steel was 3.1 million tons, an increase of 15.3% compared to the same month in . The Brazilian production of crude steel was 27.2 million tons in the first nine months of , which represents a surge of 20.2% compared to the same period in . Similarly, the production of rolled products in the same period was 20.1 million tons, an increase of 28.7% compared to the same period in . Thus, it is likely to support the market over the forecast period.

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Segmental Analysis

By type

The ultra-high power (UHP) electrode segment dominates the global market and is expected to expand substantially over the forecast period. Ultra-high-power graphite electrodes are manufactured for operation at currents with a density of more than 25A/cm2, and the graphite electrode UHP is mainly used for ultra-high-power arc furnaces and powerful ladle furnaces. UHP-grade electrodes are manufactured primarily from petroleum needle coke (PNC). PNC is a carbon-rich solid material derived from cracking petroleum in a complex refinery. The cracking process splits long chains of hydrocarbons into shorter chains. It is accomplished by taking residual oils from the refining process and treating them at high temperatures (above C and pressure).

The global UHP grade electrode production is now running at 100% capacity, and many players are also looking to expand their production abilities. The tier-2 players in the UHP graphite electrodes market witness much of the production increase. The supply/demand imbalance, combined with the need to secure supplies of petroleum needle coke, has resulted in the average cost per metric ton (MT) of UHP grade electrodes rising from USD 4,100 between and to well over USD 11,000.

High-power (SHP) graphite electrodes adopt quality petroleum coke or low-grade needle coke as raw material. Its physical and mechanical characteristics are higher than RP graphite electrodes, such as lower electrical resistance and a greater current density. SHP has higher resistivity and coefficient of thermal expansion (CTE) than UHP electrodes. The production process of SHP graphite electrodes includes crushing, screening, dosing, kneading, forming, baking, high-pressure impregnation, the second time of baking, graphitization, and machining refining. In contrast, SHP nipple uses needle coke, three times impregnation, and four times baking processes. In addition, the demand for electrodes with a larger diameter has increased as EAF furnace sizes have grown. Graphite electrodes with 500 mm or 600 mm diameters have recently gained popularity. Similarly, the SHP electrode is widely used in electric furnaces as a conductive electrode in steel melting. Hence, due to the factors above, the demand for high-power electrodes is expected to increase in the forecast period.

By application

The electric arc furnace segment owns the highest market share and is expected to expand significantly during the forecast period. Steel is produced by melting steel scrap, DRI (direct reduced iron), HBI (hot briquette iron, which is compressed DRI), or pig iron in solid form in an electric arc furnace (EAF).A graphite electrode is utilized to melt steel scrap in the electric arc furnace (EAF) steelmaking procedure. Graphite is used to construct electrodes due to its ability to tolerate high temperatures. In EAF, the electrode tip can reach a temperature of 3,000 degrees Fahrenheit, equivalent to 50 percent of the sun's surface temperature. The diameter and length of electrodes range from 75 mm to 750 mm and up to 2,800 mm, respectively. Currently, EAF steel accounts for approximately 10% of the total market share in China. However, the situation is expected to change due to the increasing availability of steel scrap in the country and government policies encouraging its utilization. As a result of the factors above, demand for graphite electrodes used in EAF applications is anticipated to increase steadily over the forecast period.

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The basic oxygen furnace is a vessel steelmakers use to convert liquid iron into steel by burning out most of the remaining carbon, silicon, and other impurities present in iron at about 6% but less than 1% in steel. The process that occurs in the BOF is called basic oxygen steelmaking. The word refers to the presence of fluxes of lime or dolomite, which maintain an alkali pH balance or chemically "base" condition in the furnace. However, basic oxygen furnace (BOF) production utilizes graphite electrodes but only to maintain the virgin steel in a molten state. As such, electrodes are not as large, nor do they require the high level of specification that EAF electrodes require. Electrodes used in BOF operations are commonly referred to as ladle electrodes.

Market Size By Electrode Grade

Ultra-High Power (UHP) High Power (SHP) Regular Power (RP)

List of key players in Graphite Electrode Market

1. GrafTech International
2. Resonac Holdings Corporation
3. Fangda Carbon New Material Co.Ltd.
4. Zhongze Group
5. Dan Carbon
6. Kaifeng Pingmei New Carbon Materials Technology Co.Ltd
7. Nantong Yangzi Carbon Co.Ltd.
8. Nippon Carbon Co Ltd.
9. SANGRAF International Inc.
10. SEC CARBON LIMITED.
11. Tokai Carbon Co.Ltd.

Recent Developments

• April - GrafTech International Ltd., a leading manufacturer of graphite electrode products essential to the manufacturing of electric arc furnace steel, announced the opening of a new sales office in Dubai, United Arab Emirates.
• July - Enevate, a U.S.-based innovator of battery technologies for electric vehicles (EVs) and other markets, and JR Energy Solution (JR ES), a leader in the design of high-performance lithium-ion battery electrodes and cells, announced a joint plan to construct a battery cell electrode manufacturing facility in the U.S.

Graphite Electrode Market Segmentations

By Electrode Grade (-)

• Ultra-High Power (UHP)
• High Power (SHP)
• Regular Power (RP)

By Applications (-)

• Electric Arc Furnace
• Basic Oxygen Furnace
• Non-Steel Applications

By Region (-)

• North America
• Europe
• APAC
• Middle East and Africa
• LATAM

Frequently Asked Questions (FAQs)

What is graphite rod?

Graphite rod is a rod-like object made of graphite material. Graphite is a kind of crystalline carbon, with good electrical conductivity, thermal conductivity, high temperature resistance, chemical stability and lubrication and many other excellent properties. These characteristics give graphite rod extremely wide range of applications. In industrial production, such as electric furnace steelmaking, electrolytic aluminum and other links, graphite rod as an electrode plays a key role. In scientific research laboratories, you can use it for high temperature experiments, electrochemical research and so on. From the appearance, it appears black or gray black, the texture is relatively soft, with a metallic luster.

Graphite rod price components

Raw material cost

The raw materials of it are mainly divided into natural graphite and artificial graphite. The price of natural graphite fluctuates greatly due to different purity and origin. For example, the price of high purity natural flake graphite is usually 500- USD/ton. If the purity of higher, larger scale size of high-quality natural graphite, the price can even exceed USD/ton. Artificial graphite is made from petroleum coke, asphalt coke and other raw materials through high temperature treatment. The price of petroleum coke is about 280-750 USD/ton, and the price of asphalt coke is roughly 450-850 USD/ton. Coupled with the complex processing process, which makes the cost of artificial graphite high, and the cost of graphite rod with artificial graphite as raw material also increases correspondingly.

Production and processing costs

Its production process includes molding, roasting, graphitization and other links. Extrusion molding equipment cost is relatively low, suitable for the production of conventional specifications of graphite rods, its processing cost is about 140-430 USD/ton. The isostatic molding equipment is expensive and the process is complex, which is suitable for manufacturing high-precision and high-performance graphite rods, and the processing cost can reach 700- USD/ton. The roasting and graphitization process consumes a lot of energy, the graphitization temperature is usually - ℃, and the energy cost accounts for about 20%-30% of the total cost.

Transportation and logistics costs

The graphite rod is large in volume and heavy in weight. And the transportation cost is significantly affected by the transportation mode and distance. Road transportation flexibility is high, but the cost is also high, the transportation cost per kilometer per ton is 3-8 USD. Railway transportation is suitable for long-distance, mass transportation, and the cost per ton per kilometer is about 1-3 USD. Shipping costs are the lowest, at 0.5-1.5 USD per ton per kilometer. The packaging cost during transportation is about 10-30 USD per ton for ordinary packaging, and 40-200 USD for special protective packaging.

Different types of graphite rod prices

The following is a price reference list of different types of graphite rods.

Type Price range High-density graphite rods From $ /ton High purity graphite rods From $ /ton Graphite rode electrode From $ /ton Fine grain graphite rods From $ /ton EDM graphite rods From $ /ton Nuclear reactor graphite rods From $ /ton Graphite stirring rods From $ /ton Pyrolytic graphite rods From $ /ton lsostatic pressed graphite rods From $ /ton

Factors affecting the price of graphite rods

Market supply and demand

When the steel industry is booming, the demand for graphite electrodes in electric furnace steelmaking is greatly increased. And the market is in short supply, the price of graphite rods may rise by 20%-50%. On the contrary, if the market demand is weak, such as the traditional industry is in the off-season, the graphite rod price will fall by 10%-20%.

Product quality and specifications

High purity, high density graphite rod, due to superior performance, it is suitable for high-end fields. The price is 30% -80% higher than ordinary graphite rod. Special specifications of graphite rods, because of the difficulty of production, the price is 2-5 times the conventional specifications.  Such as the diameter of more than 500mm or the length of more than mm.

Brand and after-sales service

Well-known brands of graphite rods, with good quality stability and reputation, the price is usually 10%-30% higher than ordinary brands. Suppliers that provide rapid logistics distribution, high-quality technical support and perfect return and exchange policies will also see their product prices rise to a certain extent.

Price differences in different markets and application scenarios

In the industrial market

Graphite electrodes for electric furnace steelmaking in the metallurgical industry, when purchased in bulk, the price is - USD/ton. Small metallurgical enterprises purchase a small amount, the price may be higher by 10%-15%.

In the chemical industry

The graphite rod used in the chemical industry for electrolytic cell, according to the corrosion resistance and specifications, the price is - USD/ton.

Research and laboratory market

Research and laboratory graphite rod, high purity and dimensional accuracy requirements. If the purity reaches more than 99.99% of the high purity graphite rod, the price of a single 50-80 USD. (The diameter of 10-50mm, the length of 100-500mm.) Specially customized graphite rods, the price may be higher.

Emerging industry market

In the semiconductor industry, used for high-temperature furnaces has high requirements for purity and stability, and the price can reach - USD/ton.

Graphite rod price trend analysis

Historical price review

Over the past decade, its prices have experienced many fluctuations. -, due to the slowdown in global economic growth and lack of market demand, its prices fell by about 20%. In -, environmental protection policies have become stricter, some small graphite production enterprises have stopped production, supply has decreased. And prices have risen by 30%-50%. In -, with the gradual release of new production capacity, prices have fallen back.

Future Price forecast

In the long run, with the advancement of technology, the production efficiency of it will be improved. And the cost is expected to be reduced. However, fluctuations in raw material prices and changes in market supply and demand will still affect prices. It is expected that in the next five years, its overall price will be stable and decline, with a range of 5%-15%. High-end graphite rods are driven by technological innovation and demand from emerging industries, and the price may remain relatively stable.

Buying Suggestions

Procurement timing selection

Pay close attention to market dynamics and avoid buying at peak prices. Use historical price data to make purchases during periods of low prices or when the market is well supplied. If the enterprise has long-term stable demand, it can sign long-term contracts with suppliers to lock in prices. And reduce the risk of price fluctuations.

Supplier selection

Choose reputable graphite suppliers with reliable product quality. Visit the supplier’s production facilities to understand their production capacity and quality control system. Comprehensively consider the supplier’s price, delivery time, after-sales service and other factors. Then choose the most cost-effective supplier, establish long-term stable cooperative relationship.

Conclusion

The price of graphite rod is affected by many factors such as raw materials, processing, transportation costs and market supply and demand. And the differences are obvious in each scenario, the price fluctuates frequently. And there is a downward trend in the future but there is uncertainty. So it is necessary to pay attention to the dynamics and scientific decision-making when purchasing.

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