Graphite electrodes are essential for the electric arc ovens that produce steel, aluminum and other metals. There are many kinds of graphite electrodes, and each has its own set of advantages. It is important to understand the differences between them in order to make informed purchasing decisions. This blog explores some key factors that impact the Graphite raw material prices.
The price of graphite is affected by a variety of factors. One of these factors is the cost and the availability of petroleum neocoke. This material, used as a primary raw materials in graphite production, has increased. The price of coal-tar impregnation products, additives and pitch pitches also affects the market. Since the process of producing graphite electrodes is energy intensive, it also drives up the price.
The market for graphite electrodes is very competitive, with multiple producers and suppliers competing to secure orders. Pricing has thus become more volatile. Prices for graphite electrodes are predicted to continue rising as the demand for products based on carbon grows globally due to increased carbon use in manufacturing.
China is the largest producer of graphite electrodes in the world. India and Japan are the next two. China's new production capacity has increased dramatically in the last few years. In response, China's graphite-electrode market is now very tight. There are fears that the situation will not improve this year, despite the fact that restrictions on graphitization in China have now been lifted.
As a way to stay afloat in the current difficult economic climate, many manufacturers limit their production or sell with fewer margins. However, this is resulting in a large shortage of high-quality electrodes in the market. Many customers will pay twice or three times as much for graphite electrodes, leading to further increases in price.
Even though prices have dropped, some graphite electrodes factories struggle to meet their full production capacity. This is partly due to high energy and electricity prices, which are stifling the growth of the industry. The Chinese government also imposes strict environmental regulations that are challenging for manufacturers of graphite electrodes.
The graphite market is flooded with new competitors, and it is still unclear if these companies will be competitive enough to take on established producers. It is necessary to construct new facilities, put them in operation and demonstrate that they can provide high-quality electrodes for reasonable prices.
GrafTech International is a leading player in the industry. It has its headquarters in Ohio (USA), Graphite India in Kolkata (India), Showa Denko Carbon in Ridgeville (South Carolina, USA), HEG in Delki in India and Tokai Carbon in Tokyo in Japan. The global Graphite electrode market is expected to grow at a CAGR of 2.7% over the forecast period. Key players invest in strategic partnerships, helping to increase their market shares.
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