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Graphite Electrode Demand

Graphite Electrode is projected to grow at a significant rate over the next five years due to an increase in steel production. Also, electric arc-furnace (EAF), technology adoption will also contribute to this growth. Graphite electrodes are essential in the EAF process as they act as the primary heat source to smelt waste metal and create new steel. The rapid infrastructure growth in emerging economies drives steel demand, fueling the EAF industry's growth. This will in turn boost graphite electrode demand.

Several companies in the global graphite electrodes industry are investing in research and development activities to improve their products. Leading players in this market are also focusing heavily on mergers-and-acquisitions to enhance their position. For example, Showa Denko K.K. SGL GE Holding purchased Showa K.K. in order to expand market presence. Ameri-Source, Tokai Carbon Co. Ltd. (in 2021) and C/G Graphite (by Resonac Graphite) are other significant mergers that have occurred in the market.

The major graphite electrodes manufacturers are focusing their efforts on producing high quality products to maintain market share and to satisfy the growing needs of the steel manufacturing industry. They are aiming to create premium-grade products that have high current-carrying capacity and good resistance to thermal shock. The demand for high power electrodes is being driven by the increase in steel consumption, particularly in emerging economies such China and India.

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In order to guarantee the quality of their product, graphite electrodes manufacturers are developing and evaluating advanced technologies. This will increase productivity and decrease operational costs. For example, some manufacturers are implementing digital technologies and sensors to monitor the performance of their products and identify any defects or issues. This will enable them to increase the lifespan of their electrodes made from graphite and maximize their efficiency.

Geographically, Asia-Pacific dominates the global graphite electrodes market. The region is characterized by a large steel production capability and extensive use of EAF technology. Rapid industrialization in countries like China, India, Japan, and others is driving steel demand, and increasing the market for graphite electrodes. To meet climatic objectives, the region also makes a transition to sustainable steel-production techniques.

The market is in a phase of partial consolidation. The leading manufacturers account for a significant part of global production. These major manufacturers focus on increasing production capacity to meet growing market demand. Additionally, they are investing in the development of advanced products to boost their market share and increase profitability. Some of these businesses are also improving the product offering by providing graphite electrodes with enhanced thermal shock and better current-carrying capability. They will be able to compete with a growing number of other products on the marketplace. In addition, they are focusing their efforts on mergers-and-acquisitions to increase their product portfolio and strengthen their market position. TMS International, for example, partnered with Nippon Carbon Co. Ltd in 2022 to become the exclusive distributor for their graphite electrodes in North America. This will enable them to meet the growing demand for high-powered graphite electrodes, and offer a comprehensive solution to steel producers.

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