Graphite Electrode Market Size, Share, Opportunities, And Trends By Grade (Regular Power (RP) Electrodes, High Power (HP) Electrodes, Ultra-High Power (UHP) Electrodes, Semi-Ultra High Power (SHP) Electrodes, Others), By End-User (Electric Arc Furnace, Basic Oxygen Furnace, Others), And By Geography - Forecasts From 2024 To 2029

The graphite electrode market is expected to register a compound annual growth rate (CAGR) of 3.35% during the projected period (2024-2029).

The main factor driving the graphite electrode market is the increasing demand from various industrial applications, particularly in steelmaking.

Technological advancements in steel manufacturing require increased demand for graphite electrodes, and modern electric arc furnaces require high-quality graphite electrodes for stable reactions. This has led to a growing demand for high-grade graphite electrodes.     

The development of the renewable energy sector further expanded the graphite electrode market. The evolution of energy storage systems powered by lithium-ion batteries underscores another growth for graphite electrodes. These storage systems are critical factors in the renewable energy sector, storing the energy produced through solar or wind power.      

The global economy’s expansion influenced the demand for graphite electrodes. During economic growth and development, industrial activities, such as steel production, tend to increase, leading to higher demand for graphite electrodes.

Several properties of graphite electrodes make them suitable for high resistance to heat and chemical corrosion.

• One of the primary reasons for this is density. The density of graphite electrodes is higher, between 1.6-1.78g/cm3. High conductivity for the carbon atoms in graphite is conducive to the free flow of electrons. Further, graphite has high mechanical strength, making it suitable for the bending moment.
• The thermal conductivity of graphite is excellent. As a non-metallic mineral, its heat conduction method is the thermal vibration of lattice atoms to transfer heat. The thermal expansion coefficient of graphite is much lower than other materials and is suitable for environments with high temperatures and changes. Being chemically stable in the property, it is corrosion resistant and does not react with other substances at room temperature.

Apart from the production of the steel industry, it is used in the manufacturing of aluminum, lithium, sodium, potassium,  sodium hydroxide, sodium chlorate, potassium chlorate, and magnesium, among others. It can be used as fuel, in welding, etc. They have lower carbon emissions as compared to the carbon electrodes during steel production. This multiple application of graphite electrodes makes it valuable for different industrial applications.

What are the graphite electrode market growth drivers?

• Increasing demand from the iron and steel industry-

One of the primary drivers for the graphite electrodes is the steel industry. Steel is applicable in multiple places from automobiles to building significant infrastructures. The manufacturing of steel needed an electric arc furnace (EAF), where the graphite electrode is needed. The demand for graphite electrodes is significant in the steel industry as they are required for low energy consumption and carbon emissions.

China is the largest producer of steel followed by India. These two nations, based in the Asia Pacific are the largest consumer as well as the largest producer of steel. They export steel to the world. The application of steel has multiple applications such as the building of skyscrapers, bridges, trains, vehicles, roads, houses, etc. This huge demand for steel would generate the demand for graphite electrodes for its manufacturing processes. Along with these two developing nations, many African nations are also growing in demand for graphite electrodes as they want to utilize their in-house resources to make steel.

• Growth of Electric vehicles and automobiles

The growth of the electrical vehicle across the world would generate the demand for graphite electrodes. Each electric vehicle needed significant graphite electrodes in the battery packs as the anode. This demand for electric vehicles would generate the application growth of the graphite electrodes. According to the IEA (International Energy Agency), the demand for EV batteries will be 750 GWh in 2023, which is 40% up from 2022. This rising number of EV batteries has contributed to the increasing demand for critical rare earth minerals like lithium. The demand for lithium was 140 kt in 2023.  

As per the research, lithium-ion batteries would be a better option for future transportation compared to hydrogen cells as the cost of storage, maintenance, and losses are much less than later. The future of electric vehicles significantly depends upon the few significant players in the global market such as Tesla and BYD. In the European region, the need for electric vehicles for heavy transport is showing significant growth.

What are the key geographical trends shaping the graphite electrode market?

• Asia-Pacific region to dominate the graphite electrode market during the forecast period.

The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region such as ASEAN countries. India and China are the two largest producers of steel in the region. India’s finished steel consumption was at 119.17 MT in FY23 and 112 MT in FY24 until January 2024.

The country is witnessing growth due to the easy availability of low-cost manpower and the presence of iron ore reserves. The industry is witnessing consolidation of players, which has led to investment from other sectors. Electric Arc Furnaces (EAF) and Ladle Furnaces are two important processes where graphite electrodes are needed for the refining of steel. It is used in ladle furnaces to provide the necessary heat for refining and alloying processes. In Electric Arc Furnaces (EAF), graphite electrodes are used to conduct electricity and generate high-temperature arcs for the melting of the raw materials.

China is bound to be the leading player in the market, as being the leading steel producer, the country has several key players such as Orient Carbon Industry Co., Ltd., RongXing Carbon, JINSUN New Material Technology LTD., Zhengzhou RongSheng Refractory Co. Ltd.,  Qingdao Tennry Carbon Co., Ltd, etc. These companies predominantly operate in the region for graphite-related products, offering different graphite products for different applications.

Major challenges hindering the growth of the graphite electrode market:

• July 2023-  Regulatory impositions such as on July 2023, Eurasian Economic Commission's Board extended the anti-dumping duty on graphite electrodes imported from India. EAEU regulatory framework decided to extend the current anti-dumping measure, the current rate is 16.04% of the customs value for HEG Limited and 32.83% for Graphite India Limited and other manufacturers. These impediments cause challenges in the full growth of the market.
• April 2023-  Further, in April 2022, the European Commission imposed anti-dumping duties on imports of graphite electrodes from China. It is followed by the investigation that Chinese graphite electrodes were sold in the EU at significantly dumped prices. This measure was undertaken by the European Commission to protect EU producers. The anti-dumping duties are set at between 25.5% and 74.9%.

Recent developments in the graphite electrode market:

• In October 2023,  TMS International partnered with Nippon Carbon Co. Ltd, to become the exclusive distributor in the North American region for graphite electrodes. The agreement would come into effect from January 1, 2024. Nippon Carbon is a leading player in the carbon industry and is successful in industrializing graphite electrodes for electric arc furnaces.  

TMS and Nippon Carbon would work to provide better services to the graphite electrode market and to develop green and low-carbon solutions to create a model of comprehensive utilization of scrap steel. TMS has been working towards environmental responsibility through recycling, maintaining energy-efficient operations, processing by-products for beneficial reuse, and developing innovative designs to reduce greenhouse emissions.

• In August 2023,  Resonac Graphite announced the acquisition of 100% shares in AMI Automation. Resonac previously acquired 50% ownership in AMI in February 2021, with an option to acquire the remaining 50% shares within five years. Resonac acquired the remaining 50% to complete the acquisition of AMI on August 15th, 2023.

Resonac is the leading global manufacturer of high-quality graphite electrodes, with the world’s largest graphite electrode production capacity in six manufacturing facilities around the world. The acquisition of AMI will assist Resonac Graphite in contributing to sustainable operations through innovative solutions for better steel-making performance.

• In November 2022,  Endesa X developed a heat recovery system for the Japanese multinational Showa Denko, the world's largest supplier of high-power graphite electrodes, for its production plant in Spain, located in the A Grela industrial estate in A Coruña. The use of waste heat in the industrial process will enable the company, which produces graphite electrodes in its factory to contribute to achieving decarbonization. This system uses the thermal energy lost in the baking stage for graphite electrodes.

Graphite Electrode Market Scope:

Report Metric	Details
Growth Rate	CAGR of 3.35% from 2024 to 2029
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segments Covered	Grade End-User Geography
Companies Covered	UKRGRAFIT Tokai Carbon Co., Ltd. Orient Carbon Industry Co., Ltd. RongXing carbon Resonac Graphite Americas, Inc.
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Customization Scope	Free report customization with purchase

 

The graphite electrode market is segmented and analyzed as follows:

• By Grade
  • Regular Power (RP) Electrodes
  • High Power (HP) Electrodes
  • Ultra-High Power (UHP) Electrodes
  • Semi-Ultra High Power (SHP) Electrodes
  • Others
• By End-User
  • Electric Arc Furnace
  • Basic Oxygen Furnace
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Middle East and Africa
    • Saudi Arabia
    • Saudi Arabia
    • United Arab Emirates
    • Rest of Middle East and Africa
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Rest of Asia-Pacific

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.1.1. Increasing demand from the iron and steel industry

4.1.2. Growth of Electric vehicles and automobiles

4.2. Market Restraints

4.2.1. Regulatory challenges

4.2.2. Carbon emission-related factors

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. GRAPHITE ELECTRODE MARKET BY GRADE

5.1. Introduction

5.2. Regular Power (RP) Electrodes

5.3. High Power (HP) Electrodes

5.4. Ultra-High Power (UHP) Electrodes

5.5. Semi-Ultra High Power (SHP) Electrodes

5.6. Other Components

6. GRAPHITE ELECTRODE MARKET BY END-USERS

6.1. Introduction

6.2. Electric Arc Furnace

6.3. Basic Oxygen Furnace

6.4. Other Industrial Processes

7. GRAPHITE ELECTRODE MARKET BY GEOGRAPHY

7.1. Global Overview

7.2. North America

7.2.1. United States

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Rest of South America

7.4. Europe

7.4.1. United Kingdom

7.4.2. Germany

7.4.3. France

7.4.4. Italy

7.4.5. Spain

7.4.6. Rest of Europe

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. United Arab Emirates

7.5.3. Rest of Middle East and Africa

7.6. Asia-Pacific

7.6.1. China

7.6.2. India

7.6.3. Japan

7.6.4. South Korea

7.6.5. Taiwan

7.6.6. Thailand

7.6.7. Indonesia

7.6.8. Rest of Asia-Pacific

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES 

9.1. El 6 (formerly EPM Group)  

9.2. UKRGRAFIT

9.3. Tokai Carbon Co., Ltd.

9.4. Orient Carbon Industry Co., Ltd.

9.5. RongXing carbon

9.6. Qingdao Tennry Carbon Co., Ltd

9.7. Resonac Graphite Americas, Inc.

9.8. Zhengzhou RongSheng Refractory Co. Ltd.

9.9. Graphite India Limited

9.10. HEG Limited.

9.11. Hebei Gufan Carbon Co. Ltd.

9.12. Endesa Energía, Endesa S.A.

El 6 (formerly EPM Group)  

UKRGRAFIT

Tokai Carbon Co., Ltd.

Orient Carbon Industry Co., Ltd.

RongXing carbon 

Qingdao Tennry Carbon Co., Ltd 

Resonac Graphite Americas, Inc. 

Zhengzhou RongSheng Refractory Co. Ltd. 

Graphite India Limited 

HEG Limited. 

Hebei Gufan Carbon Co. Ltd. 

Endesa Energía, Endesa S.A.