Market Insights

The global graphite electrode market is projected to grow at a healthy rate over the next five years to reach US$ 15.3 billion in 2024.

Market Dynamics

Market Drivers

• Steady increase in steel production through the EAF method
• No substitute for graphite electrodes in EAF steel production
• Supply crunch owing to the limited production capacity of needle coke and graphite electrode

Graphite electrode (GE) is an essential component of steel production through the electric arc furnace (EAF) method. After five years of downcycling, the demand for graphite electrodes started emerging in 2016 with the increased production of steel through the EAF method. The penetration of EAF-based steel production is expected to be stable in the foreseen future, because of the high awareness of the developed economies towards environmentally friendly technologies.

The role of China and India in the production of EAF steel is going to be consequential in the coming years as the current penetration of EAF steel production in both countries is lower than in the developed countries but will rise at a greater pace in the coming years. This will imprint a significant upward trend in the demand for graphite electrodes in the coming five years.

The market’s supply chain is extremely dynamic with a tight supply of raw materials (petroleum needle coke) as well as graphite electrodes coupled with the consistent increase in EAF steel production. The preference for lithium-ion batteries in the increasing production of electric vehicles further takes the supply crunch to the next level. Petroleum needle coke is an essential raw material for the production of lithium-ion batteries. In addition, no substitute for a graphite electrode in the production of EAF steel makes the material a strategic resource rather than mere a commodity.

Segment Analysis

By Product Type

The market is segmented based on the product type as ultra-high power (UHP), high power (HP), and regular power (RP). UHP is expected to remain the most dominant as well as the fastest-growing electrode type during the forecast period. Higher durability, higher thermal resistance, and superior quality are some of the properties that are propelling the demand for UHP graphite electrodes, especially in the steel industry. All the major global players are primarily in the manufacturing of UHP graphite electrodes.

By Application Type

The market is segmented as steel, silicon metal, and aluminum. Steel is currently dominating the graphite electrode market and is expected to maintain its dominance during the forecast period as well. There has been a continuous increase in the production of EAF steel worldwide, which is the prime driver of the demand for graphite electrodes. For instance; in China, the share of steel production through EAF increased from 6% in 2016 to 9% in 2017 (still below the global average of 46% excluding China). The government of China has set a target of achieving 20% steel production through EAF by 2020.

Regional Analysis

Asia-Pacific is expected to remain the largest market during the forecast period. China and India are the largest and second-largest steel-producing countries through the EAF method globally. Furthermore, among the leading players, five players (Showa Denko K.K. (Japan), Fangda Carbon New Material Co. Ltd. (China), Tokai Carbon Co. Ltd. (Japan), Graphite India Limited (India), and HEG Ltd. (India) are based in Asia-Pacific.

Market Segmentation

The market is segmented into the following categories:

, By Product Type

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

By Application Type

• Steel Production 
• Silicon Metal Production 
• Aluminum Production 

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Russia, Germany, Turkey, Italy, France, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Central & South America, the Middle East, and Africa) 

Key Players

The report also maps the supply chain including raw material suppliers, petroleum needle coke manufacturers, graphite electrode manufacturers, and end users.

Some of the key players are:

• Showa Denko K.K.
• GRAFTech International
• Graphite India Limited (GIL)
• HEG Ltd.
• Tokai Carbon Co., Ltd.
• Energoprom
• Fangda Carbon New Material Co. Ltd.
• Sangraf International
• SEC Carbon, Limited
• Nippon Carbon 

Report Features

This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact book, press release, journals, investor presentation, white papers, patents, and articles, have been leveraged to gather the data. About 10 detailed primary interviews with the market players across the value chain in all four regions and industry experts have been executed to obtain both qualitative and quantitative insights.

Research Methodology

This comprehensive report, from Stratview Research, on the graphite electrode market for the metal industry is one of its kind and estimates the current as well as future growth opportunities for the market participants until 2024. The report also addresses the current supply constraint (limited production capacity) of both graphite electrode as well as petroleum needle coke and its impact on the price as well as demand for graphite electrodes. Furthermore, the report also unveils the impact of increased graphite electrode price on to the production cost of EAF steel. The report provides detailed competitive analysis including the current efforts made by the leading players with regard to increasing their production capacity in order to gain a higher share. So, overall, this strategic report is extremely crucial for the market participants as well as investors in order to understand the current market realities as well as future market possibilities. This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
• Market trend and forecast analysis
• Market segment trend and forecast
• Competitive landscape and dynamics: Market share, product portfolio, product launches, etc.
• Attractive market segments and associated growth opportunities
• Emerging trends
• Strategic growth opportunities for the existing and new players
• Key success factors 

Customization Option

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling       

• Detailed profiling of additional market players (up to 5 players)
• SWOT analysis of key players (up to 5 players)

Regional Segmentation

• Current market size (2018) of graphite electrode for the metal industry in any of the countries by product type

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry at [email protected].