The global graphite electrode market is projected to reach over USD 12 billion by 2028, according to a recent research report by Mordor Intelligence. Graphite electrodes are widely used in electric arc furnaces and melting furnaces in steel mills, silicon plants, and other factories.
Rising Steel Production Across the Globe
Graphite electrodes act as conductors of electricity in the furnace, generating enough heat to melt scrap metal, which is the main raw material used to produce steel.
China is the largest producer of steel. The Asia and Oceania region produced 1.38 billion metric tons of crude steel, an increase of 0.6% compared to 2020. The Middle East produced 41.2 million metric tons of crude steel in 2021, an increase of 1.2% compared to 2020. Growing production of steel and recycled steel across the globe, especially in China and other developing nations, will drive the growth of graphite electrodes.
Demand Hotspot: China
China holds the largest share of the consumption and production capacity of graphite electrodes in the global scenario. Currently, there are more than 40 official graphite electrode producers in China, with 30 new entrants that make other refractory products, along with electrodes, added to the market in the past few years. In March 2022, Xinyu Steel started construction of its 100-metric-ton electric arc furnace project. The new mill will have a liquid steelmaking capacity of 1 million metric tons per year. The proportion of steel produced in electric arc furnaces in China is estimated to rise significantly by 2023.
The Chinese government focuses on developing eco-friendly means of producing steel. According to the guidance on promoting high-quality development of the iron and steel industry issued by China’s Ministry of Industry and Information Technology at the end of 2021, the proportion of EAF steel output will be increased to more than 15-20% of total crude steel output, while the scrap usage ratio will reach 30% in the coming years.
Interested to Learn More?
For more in-depth information, check out the report Graphite Electrode Market – Growth, Trends, COVID-19 Impact, and Forecast (2022-2027) by Mordor Intelligence. The report covers an analysis of market dynamics with detailed information about market drivers, restraints, trade analysis, price trends, and technology/patent analysis. The report also covers information on key demand segments and the competitive landscape. Zhongze Group, Showa Denko KK, and GrafTech International are among the key suppliers.
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