The graphite electrode market in terms of revenue was worth of USD 4.73 Billion in 2021 and is expected to reach USD 14.62 Billion in 2028, growing at a CAGR of 12.54% from 2021 to 2028.
Graphite electrodes are predominantly used in steelmaking mostly through the electric arc furnace (EAF) way which is an environment-friendly technology.
Each ton of steel consumes approximately 1.5 - 2.0 kg of graphite electrode. The global steel sector witnessed significant headwinds. After adoption of Blue-Sky Policy, China promised to replace its huge and inefficient Blast Furnace steel capacity with EAF plants pursuing a development in their EAF steel capacity from about 5% to almost 20% by 2020. Hence, the graphite electrodes demand noticed a sudden upsurge and became a strategic product from its earlier tag of a commodity.
Steel utilization is extensively taken to be an indicator of economic expansion. For example, as a speedy-emerging country aiming to become around 5 trillion-dollar economy in few years, India’s financial expansion is intimately linked to the development of its steel industry. Further, India has today surpassed Japan to become the world’s second biggest manufacturer of crude steel, generating more than 100 mmt in 2020. While EAFs can generate all types of steels, from metal for fundamental products like reinforcing bar to stainless and superior alloyed special steels, where flexibility and smaller capacities are advantages. After keeping at nearly 25% of global steel-making production for almost a decade, the movement to EAF steelmaking skyrocketed during the past seven years. For example, China’s share in EAF production was only 6% of global steel making till 2014 over EAF had improved to 10.4% up to 2019. The graphite electrode market is growing with considerable CAGR globally due to massive adoption of EAF approach in steelmaking.
However, the world was overwhelmed in the pandemic. The pandemic hit the economies the hardest and impacted overall product cycle an unprecedented means. Lockdowns enforced to contain the spread of the coronavirus resulted in a decline in steel demand. As such, the production for graphite electrodes declined. Up to 30% of global steel-making capacity (excluding China) continued idle or managed at decreased utilization in response to a pandemic-induced drop in demand. With the phased unlocking of industry activities, steel production through the EAF route picked up. After pandemic, the demand for graphite electrode seen upsurge worldwide which further improved the production.
Major participants in the graphite electrode market worldwide are highly contributing to the further expansion of the market. As the industry is relatively consolidated, especially outside of China. The largest global manufacturers in the industry are Showa Denko K.K., GrafTech, Fangda Carbon New Material Technology Co. Ltd., Tokai Carbon Co., Ltd. and Graphite India Limited. The firms are increasingly developing effective products that provide high electrical conductivity and broadly used for many approaches. For example, Tokai Carbon had launched its significant graphite electrode with different sizes. Also, the company has developed the world's biggest electrodes. In addition to this, Fangda Carbon has a comprehensive manufacture capacity of almost 190,000 tons of graphite electrode. Not only these, but also other local and international players are also anticipated to implement go-to-market strategies, mergers & acquisitions, and new product launches to remain competitive and meet the escalating demand for graphite electrode.
Analyst Comment, “Vast Consumption of Steel Across the World is Generating USD 47.39 Billion in 2021 and Surge in EAF Steelmaking Capacity will Result in Profitable Growth in Global Graphite Electrode Market in the Forthcoming Years.”
Rising Applications of Graphite Electrodes in Various Industries Such as Construction and Steel Making, Growing Availability of Steel Scrap in China and Increasing Demand of Anti-Corrosive Products for Oil and Petroleum Wells are Some of the Major Factors Driving the Market Growth
Rising applications of graphite electrodes in various industries such as construction and steel making owing to its various properties is one of the major factors driving the demand for graphite electrodes. Graphite electrodes are used in various industries such as construction, steel making and battery owing to their appealing properties like superior thermal and electrical conductivity, high chemical stability, enhanced mechanical strength and low impurity. Graphite electrode is becoming more and more important due to the ongoing decarbonization of the steel and metals industry. In the steelmaking process, iron scrap gets melted in an electric arc furnace and recycled. Graphite electrodes, a kind of conductor, are an essential component in this kind of furnace. They can melt scrap at a temperature of about 1600℃. Thus, Graphite electrodes are also used to refine steel in ladle furnaces and in other smelting processes. And graphite electrodes are also used in lithium-ion batteries. Carbon graphite is a major component in making Li-Ion battery. Li-ion battery technology has a number of important and distinct advantages over competing technologies such as high energy density; lower rate of self-discharge as compared to Ni-Cad and NiMH; and maintenance free unlike Ni-Cad cells which need to be periodically discharged to ensure elimination of memory effect. These batteries are lightweight when compared to other battery types; have higher temperature tolerance; fast and safe charging; longer life and durability; higher cycle life over 4000 to 5000 cycles; and overthrow issues such as "Peukert's losses" and "voltage sag" typically seen in lead acid batteries. High energy density is an important benefit for mobile electronic applications such as smartphones, tablets and PDAs, since it means ability to operate the device operate longer between charges.
All of these benefits help ensure the technology's use ranging from powering small electronics to large equipment, and vehicles such as electric cars. In the field of EVs, li-ion batteries are poised to dominate as it represents the best performing technology available to date. with the highest coulombic efficiency (CE) ratings in rechargeable batteries at more than 99%; lowest rate of self-discharge; highest multiple number of recharge cycles; lightweight when compared to other battery technologies; and longer life & longevity, this technology is versatile enough to meet current engineering needs of EV designers. Thus, rising applications of graphite electrodes in various industries such as construction and steel making due to its various properties is one of the major drivers in the global graphite electrodes market within the forecast period.
Rising availability of steel scrap in China is also supplementing the growth of the global graphite electrodes market. The market is expected to gain from increasing production of steel and iron across emerging countries along with easy access to steel scrap in China. China holds the leading share of the production and consumption of graphite electrodes globally. While focus on high specifications and rising environmental concerns are pushing capacity additions in the Chinese EAF steelmaking industry, rising consumption of graphite electrodes in lithium batteries is driving the demand for needle coke in the country. In addition, anticipated increasing domestic use is expected to fuel graphite electrode demand in China. The graphite electrodes market in China is expected to gain from increasing dependence of the steel industry on EAF technology along with use of made-in-China electrodes. Recent policy mandates across various provinces including Beijing are coercing steel manufacturers to shut down an estimated capacity of around 1.25 million tons. The domestic demand is likely to be further propelled by increasing automobile production and rising residential construction activity, creating the need for steel, iron and non-ferrous alloys. In addition, China is investing to double the production capacity of ultra-high power graphite electrodes in the coming years.
Furthermore, growing demand of anti-corrosive products for oil and petroleum wells has enhanced the use of EAF which is also fostering the growth of global graphite electrodes market. Graphite electrodes are large cylindrical structures made up of petroleum needle coke and coal tar pitch. They conduct electrical energy from the power source and convert it into heat which is used to melt scrap metal. Since graphite has high thermal conductivity and low electrical resistance, these electrodes can generate heat up to the temperature of 1600 degrees Celsius. They are primarily used in Electric Arc Furnaces (EAF) and Blast Oxygen Furnaces (BOF) for steelmaking and smelting ferrous alloys. These electrodes help in the manufacturing of high-quality products that can withstand high heat dissipation have high electrical conductivity and exhibit exceptional mechanical strength. The increasing requirement of anti-corrosive products for oil and petroleum wells and pipelines in the oil and gas sector has further enhanced the use of EAF, and subsequently catalyze the demand for these electrodes. Additionally, the increasing requirement for Ultra-High Power (UHP) graphite electrodes is another market trend that is projected to drive the market. UHP has a higher thermal and electrical conductivity and can swiftly melt scrap to manufacture steel. It is therefore highly preferred by steel manufacturers, and its demand is expected to grow substantially in the coming years.
|Historical data||2015 - 2020|
|Forecast Period||2021 - 2027|
|Market Size in 2021:||USD 4.73 Billion|
|Base year considered||2020|
|Forecast Period CAGR %:||
|Market Size Expected in 2028:||USD 14.62 Billion|
|Tables, Charts & Figures:||175|
|Graphite Electrode Companies||Ameri-Source Specialty Products, Dan Carbon Group, EPM Group, GrafTech International Ltd., Graphite India Limited, HEG Limited, Nippon Carbon Co. Ltd., PDS Industrial Holdings Inc., Schutz Carbon Electrodes Pvt. Ltd., SEC Carbon Ltd., Showa Denko K.K., Tokai Carbon Co. Ltd., Yangzhou Guangming Special Graphite Co. Ltd., Others|
|Segments Covered||By Grade, By End Use|
|Regional Analysis||North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa|
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