The global Graphite Electrode market is expected to witness growth due to the construction sector's consistent uptick in steel production. Moreover, rapid industrialization and urbanization across the world is also boosting steel demand. The demand for high-quality, long-lasting steel is boosting the market for graphite electrodes that are used in electric arc furnaces to manufacture steel.
Governments of developing nations are expected to increase their infrastructure spending, which will in turn drive the graphite-electrode demand. In electric arc furnaces, these electrodes help smelt scrap metal to produce steel. Furthermore, the growing demand for electric vehicles is also expected to boost the graphite electrode market as these are powered by lithium-ion batteries.
Graphite Electrode companies are adopting new technologies in order to maintain their market position. Battrion AG (a Swiss firm) and Jagenberg Converting Solution GmbH (a German machine- and-equipment manufacturer), unveiled Battrions Aligned Graphite Technology in March 2022. This improves graphite's microstructure and lowers resistance in the cells. The batteries will be able to charge faster and have a higher capacity.
Currently Asia Pacific has the highest market share for Graphite Electrodes due to China and India's rapidly expanding steel industry. The market is expected to expand at a higher rate in the region during the forecast period as demand for graphite for electric arc furnaces increases.
China will be the largest crude steel producer in 2022, with a contribution of over 55%. China's consistent steel output and robust growth in the construction sector are driving the graphite electrode market. In addition, China has ordered the closure of 300,000,000 tonnes worth of polluting old steel mills. This will probably slow down China's production of steel and could impact graphite electrodes in the future.
The Graphite Electrode market is partially consolidated, with a few prominent players in the market. They are Resonac Holdings Corporation and IBIDEN co. Ltd.
North America's well-developed infrastructure will allow it to grow rapidly on the Graphite Electrode Market. The sophisticated manufacturing infrastructure and technology in this region allow it to efficiently produce high quality electrodes. It will also help to maintain the growth of the electrode market in the region over the next few years. The US economy is strong and it exports a lot of steel. The US also imports a large amount of graphite electrodes. Hence, the demand for these is expected to remain high in the country. The market for graphite electrodes in the US is expected to grow during the forecasting period due to the factors described above. This business, however capital intensive, will have a limited growth over the next few years.
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