China has the largest production capacity in the graphite electrode industry. It accounts for over 50% of global graphite electrode production. The country is expected to continue its market leadership through 2020. However, it has faced challenges due to the recent outbreak of COVID-19. These challenges prompted the Chinese government to put bold restrictions and shut down several electrode plants.
China's graphite electrode production declined by almost half in spring of 2017. Several electrode manufacturers halted their production until they were inspected by the government. Prices of electrodes skyrocketed because of a lack of supplies and overcapacity. Although prices are now lower, the supply still remains inadequate to meet the growing demand.
In order to produce electrodes, producers require a large amount of raw materials. A variety of upstream raw materials are used, including petroleum coke and needle coke. Each material has different properties that determine the quality of the finished product.
The graphite electrode production process requires special machinery and process technologies. It also produces hazardous gases that can affect the environment. To overcome these environmental hazards, the production process requires sound ventilation, the removal of gas emissions, and elimination of harmful gas measures.
There are two basic stages of graphite electrode production. The first stage is the calcination of coke. This process improves the electrical conductivity of the coke, and reduces its porosity. Once the product has cooled down, it is placed in the graphitization furnace. The temperature should be at least 1300°C.
The second stage is the machining of the electrode. During machining, various chemical reactions take place. These reactions may lead to the formation of complex compounds. They also affect the overall quality of the electrode. Because of these processes, a high degree of technical standards is required.
As the demand for electrodes increases, production of graphite is expected to increase at a rapid pace. China is expected to continue to lead the graphite electrode market through the forecast period. It has a large production capacity and is the world's largest steel producer. Furthermore, it is becoming the global investor in engineering.
In China, more than 40 graphite electrode producers are officially licensed. Among these manufacturers, the three leading ones are Fangda Carbon, Kaifeng Carbon, and Nantong Carbon. Others include Tokai Carbon, Graphite India, SGL Carbon, and GrafTech U.S. Some other companies in the graphite electrode market are Jilin Carbon, Showa Denko Japan, and Nantong Yangzi Carbon Co. Ltd.
During the last two years, 30 new entrants have entered the graphite electrode market. These entrants are mainly private enterprises. Most of these entrants are engaged in make-to-order and batch production.
The rising number of manufacturing companies in Asia Pacific is anticipated to increase the graphite electrode market in this region. Asia Pacific is also expected to maintain its market leadership through the forecast period. Other factors contributing to the growth of the graphite electrode market are the increasing spending on infrastructure and the surge in production of iron and steel.
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