Product Code: 65727
The graphite electrodes market was valued at USD 4,431.49 million in 2020, and the market is projected to register a CAGR of over 6.5% during the forecast period (2021-2026). The primary raw material used for the production of graphite electrodes is needle coke (either petroleum-based or coal-based).
Due to the COVID-19 impact in the first half of 2020, the global steel industry is in a disastrous situation, far worse than anything experienced since the beginning of this millennium, with serious implications for domestic steelmakers. The global steel production declined by 6% in the first half of 2020, to nearly 877 million metric ton, according to Worldsteel. With the decline in steel production, the demand for graphite electrodes was significantly affected in 2020.
- In the short term, the rising production of steel in emerging countries and the rising availability of steel scrap in China are expected to drive the demand in the market during the forecast period.
- The rising production of steel through electric arc furnace technology in China is expected to act as an opportunity for the market in the future.
- The Asia-Pacific region is expected to dominate the market due to China's strong demand at a global level.
Key Market Trends
Increasing Production of Steel through Electric Arc Furnace Technology
- Electric arc furnace takes steel scrap, DRI, HBI (hot briquetted iron, which is compacted DRI), or pig iron in solid form and melts them to produce steel. In the EAF route, electricity provides the power to melt the feedstock.
- Graphite electrode is primarily used in the electric arc furnace (EAF) steelmaking process to melt steel scrap. Electrodes are made of graphite because of their ability to withstand high temperatures. In EAF, the tip of the electrode can reach 3,000º Fahrenheit, which is half the temperature of the surface of the sun. The size of electrodes varies widely, from 75mm in diameter, to as large as 750mm in diameter, and up to 2,800mm in length.
- The price surge of graphite electrodes pushed up EAF mills' costs. An average EAF is estimated to consume approximately 1.7 kg of graphite electrodes to produce one metric ton of steel.
- The price surge is attributed to industry consolidation globally, capacity shutdown in China, following environmental regulation, and the growth of EAF production globally. This is estimated to increase the production cost of EAF by 1-5%, depending on the mill's procurement practices, and this is likely to restrict steel production, as there is no substitute for a graphite electrode in EAF operations.
- Additionally, China's policies to tackle air pollution have been reinforced by strong supply curbs for not only the steel sector but also coal, zinc, and other sectors that generate particulate pollution. As a result, Chinese steel production has drastically declined over the past years. However, this is expected to have a positive impact on steel prices and steel mills in the region, to enjoy better margins.
- All the aforementioned factors are expected to drive the graphite electrode market during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the global market share. China occupies the largest share in terms of consumption and production capacity of graphite electrodes in the global scenario.
- China is the largest steel producer in the world. Even though the COVID-19 outbreak has taken a toll on global crude steel production, the Chinese steel industry showed significant recovery in 2020. The overall crude steel production increased by 5.89% and reached 1,054.4 million metric ton in 2020 from 2019.
- Additionally, China has introduced a new regulation on pollutant discharge permits, which came into effect on March 1, 2021. Thus, this is likely to boost the EAF steel production trend in the country.
- The operating rate for UHP grade in China has not experienced any significant changes. However, the non-UHP grade has seen a significant decline, as it reported to be ~47.5% in 2020 from ~65.7% in 2019.
- All the above-mentioned factors, in turn, are expected to increase the demand for graphite electrodes in the region during the forecast period.
The graphite electrode market is partially consolidated with the top six players accounting for over 45% of the total market. In terms of market share, a few of the major players currently dominate the market. Key players in the graphite electrode market include Fangda Carbon New Material Technology Co. Ltd, GrafTech International, Graphite India Limited, Jilin Carbon Co. Ltd, and SHOWA DENKO K.K., among others.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Strong Growth in Steel Production in Emerging Countries
- 4.1.2 Rising Availability of Steel Scrap in China
- 4.2 Restraints
- 4.2.1 Impact of COVID-19
- 4.2.2 Other Restraints
- 4.3 Industry Value Chain Analysis
- 4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION (Market Size in Volume and Value)
- 5.1 Electrode Grade
- 5.1.1 Ultra High Power (UHP)
- 5.1.2 High Power (SHP)
- 5.1.3 Regular Power (RP)
- 5.2 Application
- 5.2.1 Electric Arc Furnace
- 5.2.2 Basic Oxygen Furnace
- 5.2.3 Non-steel Application
- 5.3 Geography
- 5.3.1 Asia-Pacific
- 126.96.36.199 China
- 188.8.131.52 India
- 184.108.40.206 Japan
- 220.127.116.11 South Korea
- 18.104.22.168 Rest of Asia-Pacific
- 5.3.2 North America
- 22.214.171.124 United States
- 126.96.36.199 Mexico
- 188.8.131.52 Canada
- 5.3.3 Europe
- 184.108.40.206 Germany
- 220.127.116.11 United Kingdom
- 18.104.22.168 Italy
- 22.214.171.124 France
- 126.96.36.199 Rest of Europe
- 5.3.4 South America
- 188.8.131.52 Brazil
- 184.108.40.206 Argentina
- 220.127.116.11 Rest of South America
- 5.3.5 Middle-East and Africa
- 18.104.22.168 Saudi Arabia
- 22.214.171.124 South Africa
- 126.96.36.199 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 EPM Group
- 6.4.2 Fangda Carbon New Material Technology Co. Ltd
- 6.4.3 GrafTech International
- 6.4.4 Graphite India Limited
- 6.4.5 HEG Limited
- 6.4.6 Jilin Carbon Co. Ltd
- 6.4.7 Kaifeng Pingmei New Carbon Material Technology Co. Ltd
- 6.4.8 Nantong Yangzi Carbon Co. Ltd
- 6.4.9 Nippon Carbon Co. Ltd
- 6.4.10 SANGRAF International Inc.
- 6.4.11 SEC CARBON LIMITED
- 6.4.12 SHOWA DENKO K.K.
- 6.4.13 Tokai Carbon Co. Ltd
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Rising Production of Steel through EAF Technology in China