Welcome to FengYuan Metallurgical Materials Co., Ltd.

Global Graphite Electrode Market

The global graphite electrode industry is highly competitive. For the sake of maintaining their share in the market, many major players concentrate on developing new products, expanding capacity and forming partnerships. Some of the key players in this sector include Resonac Holding Corporation, IBIDEN co. Ltd., Tokai Carbon Co. Ltd., GrafTech International Holdings Inc., SGL Carbon SE, Mersen SA, and Fangda Carbon New Material Co. Ltd. Increasing steel production in developing nations is driving the demand for graphite electrodes. Electric arc furnace technology is another factor that has helped to boost growth. The EAF method is more cost-effective and environmentally friendly than traditional methods of steelmaking.

Graphite is used in many other products, like the silicon metals and aluminum. This product's market growth can be attributed to this. A major factor driving the market growth is increasing lithium-ion use in electric vehicles. The growth of the market is predicted to be accelerated by this trend during the forecast period.

COVID-19, on the other hand, has affected construction and steel production activities across several countries. Further, production and supply chain restrictions, labor shortages, border locking, and other measures to curb the spread have all negatively impacted the graphite market.

China controls a considerable share of global graphite-electrode sales. This is because China produces the largest amount of steel. China has seen its steel production slowed by the Chinese government's pollution controls. 300 million metric tonnes of obsolete, environmentally harmful steel production capacity have been closed.

In the region, India has been a leading producer of steel and is projected to continue to be so in the near future. India's rapid growth is a result of increasing infrastructure investment and an increase in demand for steel in the construction industry. Construction is the largest consumer of graphite electrodes.

China, the world’s biggest consumer of graphite electrodes, is predicted to dominate the global markets through 2022. China is currently the largest steel producer in the world and will continue to dominate the market throughout the forecast period. Chinese authorities are also promoting recycling resources, and limit scrap consumption in steel manufacturing.

There have been several mergers and purchases in the sector over the past couple of years. The trend of mergers and acquisitions is expected to continue over the next few years, as businesses seek to broaden their geographic reach and expand production. In 2015, Brookfield Asset Management acquired GrafTech International to expand its production capacity and improve its product range. Several companies have also focused on increasing their business in emerging markets where the demand for graphite electrodes and steel is very high. It is possible that this will increase the competition on the market. Prices are likely to stay low for the foreseeable future.

Write a Message