Graphite Electrode Market by Type (UHP graphite electrode, HP graphite electrode, RP graphite electrode) by Distribution Channel (Electric Arc Furnace, Ladle Furnace, Non-Steel Application, Others): Global Industry Size, Share, Statistics and Forecast 2016 - 2028

Graphite electrodes are massive cylindrical structures composed of either petroleum-based needle coke or coal-based needle coke, and they are used to conduct electricity. Electricity passes through these graphite electrodes to melt scrap metal to form an intense arc of heat. The usage of graphite electrodes in electric arc furnaces and melting furnaces in steel production, silicon plants, and other manufacturing facilities is widespread. 

The Global Graphite Electrode market is expected to provide a cumulative growth equal to USD 48 billion between 2022 and 2028. The global Graphite Electrode market has shown rapid recovery from a sharp decline in 2020 and bounced back with almost 20% growth in 2021. As a result, the revenue garnered by the global Graphite Electrode industry in 2021 stood at USD 5,159.10 million, which is likely to cross the USD 8,250 million mark by the end of 2028.

Interesting Facts about Graphite Electrode Industry

• The global average cost of graphite electrodes ranges between USD 3.5 to USD 5
• Essential raw materials used in the manufacturing of graphite electrodes include petroleum needle coke, coal tar pitch, and some additives.
• Production of graphite electrodes in 2021 reached over 1,100 kilo tons
• Average graphite electrode consumption per ton of liquid steel is around 4.5 kg.
• China dominates the production as well as consumption of graphite electrodes.
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The Covid-19 pandemic heavily impacted the graphite electrode market. The sharp declines in international trade due to government lockdowns and regulations negatively affected the growth of this market. The pandemic also affected the global steel industry significantly, which in turn caused the graphite electrode industry to slow down. With the Covid-19 pandemic finally ending, this market is expected to get back on track and rise over the forecasted time period. 

Steady and Strong Growth of the Steel Industry

Electric Arc Furnace, Ladle Furnace, Non-Steel Application, and Others are some of the major application industries for graphite electrodes. In addition, there is a steady increase in the demand for graphite electrodes in sectors like automotive, construction, infrastructure, and many other steel-based industries. All these industries will be a significant driving force behind the graphite electrode market.  

Graphite can withstand very high temperatures, which is why it has been the growing material of choice in many steel-making processes. It can withstand temperatures as high as 3,000°F, making it the go-to choice in electric arc furnaces. Graphite electrodes are a vital element in the electric arc furnace (EAF) based steel-making process. With the world moving towards environmentally friendly technology in their industries, EAFs in steel production are expected to rise over the forecasted time.  

Growing Refractory Manufacturing Industry

Another major driving factor of this industry is the growing refractory manufacturing industry. Graphite is used extensively in many ways in the refractory industry, such as in producing magnesia-carbon refractory bricks. Graphite also makes molds and ladles for holding and handling molten metals.    

Mounting Demand for Ultra-High Power Graphite Electrodes

There is also an increase in the requirement of Ultra-High Power graphite electrodes in industries globally, which will fuel this market further. Ultra-High Power graphite electrodes have very high thermal capacities and, also, very high electric conductivity and are used to melt scraps quickly to construct steel. Steelmakers favor Ultra-High Power graphite electrodes for their manufacturing which will drive this market further over the forecasted years. UHP graphite electrode, H.P. graphite electrode, and R.P. graphite electrode are key types of graphite electrodes.  

Frequent Fluctuations in Prices of Raw Materials

The biggest restraining factor of the graphite electrode market is the fluctuating and increasing prices of materials used to manufacture graphic electrodes. For example, since just 2017, the price of needle coke has jumped higher almost five times. These fluctuating prices make manufacturers hesitant to make huge investments in the industry, which may slow down the market over the forecasted years. 

The second most significant factor that might hamper the growth of this market is the high initial capital needed for installing these components. In addition, the cost of maintaining and running these graphic electrodes is also very high, which may also play a factor in this industry.

Graphite Electrode Market is Highly Concentrated

Nippon Carbon Co. Ltd., Graphite India Limited, Tokai Carbon Co. Ltd., Jilin Carbon Co. Ltd, SHOWA DENKO K.K., Agilent Technologies Inc., Ameri-Source Specialty Products, Brothers International Ltd., EPM Group, Fangda Carbon New Material Technology Co. Ltd, GrafTech International, HEG Ltd., and Weaver Industries Inc. are some of the most prominent players in the global Graphite Electrode market. Almost half of the market share is occupied by the top seven players. China dominates the production of graphite electrodes. China is the largest consumer as well. Japan, India, and South Korea are some of the major economies in the global graphite electrodes market. Backed by strong demand from UK, Germany, and France, Europe holds the second position. At the same time, North America is sitting in the third position in terms of volume consumption.