[Research Report] In terms of revenue, the graphite electrode market was valued at US$ 6,564.2 million in 2019 and is expected to reach US$ 11,356.4 million by 2027 with a CAGR of 9.9% from 2020 to 2027.
The global graphite electrode market is dominated by the Asia Pacific region accounting for ~58% of the global graphite electrode market collectively. The high demand for graphite electrodes from these countries is attributed to the steep rise in crude steel production. As per the World Steel Association, in 2018, China and Japan produced 928.3 and 104.3 million tonnes of crude steel respectively. In APAC, electric arc furnaces have a significant demand due to rising steel scrap and increase in electrical energy supply in China. The growing market strategies by various companies in APAC is encouraging the growth in the graphite electrode market in the region. For instance, Tokai Carbon Co., Ltd., a Japanese company, has acquired the graphite electrodes business of SGL GE Holding GmbH (SGL GE), at the cost of US$ 150 million.
Governments of major European countries have been taking various initiatives to advance their manufacturing and electronics & semiconductor sectors, among others. Europe has significantly upgraded its industrial solutions through the Industry 4.0 initiatives. The European Commission is focusing on increasing funding for R&D to strengthen the competitiveness of the manufacturing and others sectors of the region in the world. The demand for graphite electrodes is directly linked to the production of steel in electric arc furnaces, and the region is one of the crucial steel producers in the world, with Russia being largest producers.
Impact of COVID-19 Pandemic on Graphite Electrode Market
According to the latest situation report from the World Health Organization (WHO), the US, India, Spain, Italy, France, Germany, the UK, Russia, Turkey, Brazil, Iran, and China are among the worst affected countries due to COVID-19 outbreak. The outbreak first began in Wuhan (China) during December 2019, and since then, it has spread at a fast pace across the globe. The COVID-19 crisis is affecting the industries worldwide, and the global economy is anticipated to take the worst hit in the year 2020 and likely in 2021. The outbreak has created significant disruptions in the steel industry. The sharp decline in the international trade is negatively affecting the growth of the graphite electrode. The production shutdowns, restrictions on supply chain, procurement management, labor scarcity, and border lockdowns to combat and contain the outbreak have adversely affected the construction sector. The production slowdown in the construction industry is directly affecting the adoption of various steel products, thus impacting the graphite electrode market.
Lucrative Regional Graphite Electrode Market
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Market Insights
Transition in Chinese steel industry is supporting the growth of graphite electrode market
In 2016 and 2017, China's steel industry scene was shaped by policy-driven dismissal of IF potential as the government endeavored to inscribe a domestic supply oversupply. As per worldsteel.org, consumption of scrap steel in EAF and basic oxygen furnace (BOF) steel mills touched a record of higher than 200 million metric tons per year. In the meantime, China's EAF capacity relinquished a new zenith of 130 million metric tons per year as government regulations restrict generation by integrated mills in key areas and promote their vigorous replacement by EAF capacity. This has given rise to the production of EAF steel, thus abetting the growth of graphite electrodes market.
Product Type-Based Insights
In terms of product type, the ultra-high power segment captured the largest share of the global graphite electrode market in 2019. Ultra-high power graphite electrode is utilized for recycling steel in the electric arc furnace (EAF) industry. Its main constituent is high-value needle coke, which is produced from either petroleum or coal tar. Graphite electrodes are perfected with a cylinder shape and manufactured with threaded areas at each end. In this way, the graphite electrodes can be assembled into an electrode column using electrode nipples. To suffice the requirement of lower cost and higher work efficiency, the large capacity ultra-high power arc furnaces are becoming more popular. Thus ultra-high power graphite electrodes are expected to hold the major share of the graphite electrode market. Also, the segment is expected to witness the highest CAGR growth in the graphite electrode market.
Global Graphite Electrode Market, by Product Type– 2018 and 2027
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Application-Based Insights
Based on application, the graphite electrode market is segmented into electric arc furnace, ladle furnace, and others. The electric arc furnace segment is estimated to grow at the highest CAGR during the forecast period. Graphite electrode is an indispensable component of steel production via the Electric Arc Furnace (EAF) method and ladle furnace steel purification. Graphite electrodes are also used for the production of the non-steel ferrous metal, ferroalloy, silicon metal, and yellow phosphorus. Graphite Electrode is an indispensable consumable in EAF steel production, but is needed in very small quantities; one ton of steel production needs just ~1.7kg of graphite electrode. The segment holds over 80% share of the total graphite electrode market.
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Graphite Electrode Market: Strategic Insights
Market Size Value in US$ 6,564.2 Million in 2019 Market Size Value by US$ 11,356.4 Million by 2027 Growth rate CAGR of 9.9% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Graphite Electrode Market: Strategic Insights
| Market Size Value in | US$ 6,564.2 Million in 2019 |
| Market Size Value by | US$ 11,356.4 Million by 2027 |
| Growth rate | CAGR of 9.9% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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The graphite electrode market is highly consolidated with only a certain number of players dominating the graphite electrode market. A few of the recent developments in the graphite electrode market are listed below:
2020:Tokai Carbon and Tokai COBEX completed the acquisition of Carbone Savoie International SAS, a Carbon and Graphite Manufacturer.
2020:The Board of Directors of GrafTech International Ltd. approved the repurchase of up to $100 million of the company’s common stock in open market purchases
2019:Showa Denko (SDK) completed the acquisition of all shares in SGL GE Holding GmbH, a graphite electrode production company. After the acquisition, the name of the company changed to SHOWA DENKO CARBON Holding GmbH.
Market Segmentation
Graphite Electrode Market – By Product Type
- High Power
- Ultra-High Power
- Regular Power
Graphite Electrode Market – By Application
- Electric Arc Furnace
- Ladle Furnace
- Others
Graphite Electrode Market by Region
North America
- US
- Canada
- Mexico
Europe
- France
- Germany
- Italy
- UK
- Russia
- Rest of Europe
Asia Pacific (APAC)
- China
- India
- South Korea
- Japan
- Australia
- Rest of APAC
Middle East and Africa (MEA)
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
South America (SAM)
- Brazil
- Argentina
- Rest of SAM
Companies Profiled in Graphite Electrode Market are as Follows:
- EPM Group
- GrafTech International Ltd
- Graphite India Limited
- HEG Ltd
- Kaifeng Carbon Co., Ltd, Zhongping Energy & Chemical Group (KFCC)
- Nantong Yangzi Carbon Co., Ltd.
- Nippon Carbon Co Ltd.
- Sangraf International
- SHOWA DENKO K.K.
- Tokai Carbon Co., Ltd.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Product Type ; Application , and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
Presently, APAC holds the largest share of the global Graphite Electrode. The graphite electrode market players in APAC are experiencing significant demand for their products from various industries. China and Japan are the leading countries in the APAC graphite electrode market. The high demand from these countries is attributed to the steep rise in crude steel production. As per the World Steel Association, in 2018, China and Japan produced 928.3 and 104.3 million tonnes of crude steel respectively. In APAC, electric arc furnaces have a promising growth due to the rising steel scrap and increase in electrical energy supply in China. Many countries in APAC are economically developing, and they are focusing majorly on the rising environmental issue. For instance, in China, the heavily polluting basic oxygen furnaces (BOF) have been forced to shut down due to strict environmental regulations. Thus, the induction furnaces were replaced by electric arc furnaces, which utilize graphite electrodes to melt steel scrap. In 2017, China reported the consumption of ~353,600 metric ton of graphite electrodes, with an increase of 3.06% on the consumption in 2016.
China’s steel industry is on the transition of a new era. Over the next decade, steel will frequently be made by recycling domestic scrap in electric arc furnace mini-mills as the government interests with the policy-driven exclusion of conventional induction furnaces (IF)/blast furnaces (BF) and the replacement of combined steel capacity. This monument change, which incorporates environmental and economic benefits, will transmute the industry and demand major modifications in the steelmaking business model at the company level. To favorably adapt to this new ecosystem, steel companies and other industry stakeholders should concede the context and motivating factors behind the transition.
Ultra-high power graphite electrode is utilized for recycling steel in the electric arc furnace (EAF) industry. Its main constituent is high-value needle coke, which is produced from either petroleum or coal tar. Graphite electrodes are perfected with a cylinder shape and manufactured with threaded areas at each end. In this way, the graphite electrodes can be assembled into an electrode column using electrode nipples. To suffice the requirement of lower total cost and higher work efficiency and, large capacity ultra-high power arc furnaces are growing and becoming more popular. Thus ultra-high power graphite electrodes are expected to hold the lion's market share.
The List of Companies - Graphite Electrode Market
- EPM Group
- GRAFTECH INTERNATIONAL LTD
- Graphite India Limited
- HEG Limited
- Kaifeng Carbon Co., Ltd
- Nantong Yangzi Carbon Co., Ltd
- Nippon Carbon Co Ltd.
- SANGRAF Intl.
- SHOWA DENKO K.K.
- Tokai Carbon Co., Ltd.
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- Data Collection and Secondary Research:
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Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
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- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
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- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
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