Graphite Electrodes Market – Snapshot

Graphite electrodes are large cylindrical structures made up of needle coke (petroleum coke).These electrodes are available in small or large diameters for high-temperature and high- intensity applications. Graphite electrodes are mainly used for steel manufacturing in electric arc furnaces. They are also used in steel refining and smelting processes. The key application of graphite electrodes is in production of steel and non-ferrous metals. Properties such as high heat resistance, low electrical conductivity, resistance to thermal shock, and low chemical reactivity are anticipated to boost the demand for graphite electrodes. The graphite electrode market was valued at about US$ 10 Bn in 2017 and is projected to expand at a CAGR of 3% during the forecast period.

Factors such as rise in demand for graphite electrodes in end-use industries, increase in utilization of steel scrap, and high demand from the steel industry are expected to drive demand for graphite electrodes. Graphite electrodes possess favorable electrical properties, high mechanical strength at high temperatures, high electrical and heat conductivity, low impurity content, chemical stability, and high vibrational resistance. Graphite electrodes used in Electric Arc Furnace (EAF) provide flexibility in varying its steel production unlike the blast furnace method of steel production. EAF units can be rapidly started and stopped, allowing the steel mill to vary production according to demand. Due to flexibility, quick turnaround time, and lower fixed costs of EAF, they have gained popularity among steel producers. However, low availability of raw material and fluctuating cost are restraining the graphite electrodes market.

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Key players in the graphite electrode market need to focus on maintaining raw material supply as supply of needle coke, a key raw material, is fluctuating. Accurate forecast and production planning as per market dynamics are key to the survival in the graphite electrode manufacturing industry.

Major players in the graphite electrode market have adopted mergers and acquisitions as their key strategy to expand their network and share their investments. For instance, in 2017, Tokai Carbon Co., Ltd. acquired SGL GE’s U.S. business to set up a manufacturing base in North America, thereby increasing the company's presence in a prominent region of the EAF market. The deal is expected to help Tokai build a solid business base as a global competitor, supported by a tri regional structure consisting of bases in Asia, Europe, and North America. When there was oversupply of graphite electrode in the market, Tokai Carbon cut production capacity by 40% to streamline the carbon ceramics segment. However, it hampered the company’s competitiveness in the graphite electrode market. Acquisition of SGL’s U.S. business helped the company increase presence and competitiveness.  Approximately six months’ time is required for the production of graphite electrodes. Raw material prices are highly volatile. Hence, contracts with major steel producers with EAF steel manufacturing facilities reduces the risk posed by volatile and uncertain market conditions. Availability of raw material is the main concern for graphite electrode manufacturers. Companies are including the clause of needle coke price adjustment in the contracts for graphite electrode prices.

The graphite electrode market is cyclical in nature. From 2011 to 2016, the market was sluggish due to low demand and oversupply. Owing to these factors, major graphite electrode manufacturers decided to cut production capacity. Global graphite electrode production capacity shrunk. In 2017, prices of graphite electrode surged due to industry consolidation globally, capacity shutdown in China, and rise of EAF-based steel production globally.

The ultra-high power segment accounted for a major share of the graphite electrodes market in 2017. It is expected to remain the dominant segment during the forecast period. Steel & non-ferrous metal and fused materials were the key application segments of the graphite electrodes market in 2017 and are expected to dominate market during the forecast period.

Asia Pacific is a key region of the graphite electrodes market. North America and Europe hold prominent share of the global graphite electrode market. Demand for graphite electrodes expanded rapidly in Asia Pacific in 2017 owing to change in Chinese government regulations. Asia Pacific is a key region of the graphite electrodes market due to high consumption and production of graphite electrodes in Japan, China, and India. Steel and non-ferrous metals is a major application segment in Asia owing to the region’s high share in steel making. China is a key country of the market in Asia Pacific due to increasing share of EAF-based steel production in the country.

Key players operating in the graphite electrode market include Showa Denko K.K., GrafTech International, Graphite India Limited, Nippon Carbon Co. Ltd., HEG Limited, Kaifeng Carbon Co., Ltd., Nantong Yangzi Carbon, SEC Carbon, Ltd., Nantong Yangzi Carbon Co., Ltd.  and Tokai Carbon Co., Ltd.

Graphite Electrodes Market - Overview

This report analyzes and forecasts the market for graphite electrode at the global and regional level. The market has been forecast based on revenue (US$ Mn) and volume (Tons) from 2012 to 2026. The study includes drivers and restraints of the global Graphite Electrodes market. It also covers the impact of these drivers and restraints on the demand for graphite electrodes during the forecast period. The report also highlights opportunities in the graphite electrodes market at the global level.

The report comprises a detailed value chain analysis, which provides a comprehensive view of the global graphite electrodes market. The Porter’s Five Forces model for the graphite electrodes market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein applications are benchmarked based on their market size, growth rate, and general attractiveness.

The study provides a decisive view of the global graphite electrode market by segmenting it in terms of type and application. The segments have been analyzed based on present and future trends. Regional segmentation includes the current and projected demand for graphite electrodes in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers the demand for individual type and application segments in all the regions. Key players operating in the graphite electrode market include Showa Denko K.K., GrafTech International, Graphite India Limited, Nippon Carbon Co. Ltd., HEG Limited, Kaifeng Carbon Co., Ltd., Nantong Yangzi Carbon, SEC Carbon, Ltd., Nantong Yangzi Carbon Co., Ltd., and Tokai Carbon Co., Ltd. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.

The report provides the estimated market size of the graphite electrode market for 2017 and forecast for the next nine years. The size of the global graphite electrode market has been provided in terms of revenue and tons. Market numbers have been estimated based on type and application of graphite electrode. Market size and forecast for each major type and application have been provided in terms of the global and regional market.

In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players operating in various end-use industries, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.

Global Graphite Electrodes Market, by Type

  • Ultra-high Power (UHP)
  • High Power (HP)
  • Regular Power (RP)

Global Graphite Electrodes Market, by Application

  • Steel & Non-ferrous Metals
  • Fused Materials
  • Chemical Processing
  • Others

Graphite Electrodes Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • France
    • Spain
    • Italy
    • Greece
    • Turkey
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • South Africa
    • GCC
    • Rest of Middle East & Africa

Key Takeaways

  • An extensive analysis of the graphite electrode market trends and shares from 2012 to 2026 to identify the market opportunities and analyze industry development
  • A list of key developments in the graphite electrode market made by key players
  • A list of key factors responsible for building the upcoming opportunistic roadmap for the graphite electrode market at a global, regional, and country level
  • Comprehensive analysis with respect to investments and price trends that impact the outlook of the global graphite electrode market between 2012 and 2026
  • The report provides insights into market opportunities for various stakeholders in the value chain and a detailed competition landscape for key players dominating the industry to understand competition level
  • Porters’ Five Forces highlight the potency of buyers and suppliers and enable stakeholders to make profit-oriented business decisions. They analyze the strengths and weaknesses of players and offer them insights to help them gain a strategic position in the market.
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