Yahoo Finance - 11 Dec 2020 World's Efforts to Curb Infection Spread, Global GDP Erosion at -4.9%& Manufacturing Slump Elicit $411.7 Million Erosion in Revenues for Graphite Electrodes
The global market for Graphite Electrodes is expected to witness revenues plummet by -3.6% in the year 2020 and thereafter recover and grow to reach US$15.3 billion by the year 2027, trailing a post COVID-19 CAGR of 5.2% over the analysis period 2020 through 2027. Demand for graphite electrodes is expected to decline considerably in 2020, amid crushing impact of ongoing COVID-19 crisis on the world steel and aluminum industries, the largest application markets.
Steel industry accounts for over 73.3% of global demand for Graphite Electrodes. Various COVID-19 related factors are contributing to sharp drop in sales and revenue of steel industry, while wielding a parallel negative influence on graphite electrode market. A major factor negatively impacting the market is the lockdowns imposed by governments in several parts of the world, which curbed the non-essential enterprise activity as well as people's movement in streets and markets.
Although, restrictions are not stringent and have been eased significantly in most of the countries, concerns over future financial insecurity is limiting the consumer purchases only to the essential items such as groceries and other basic necessities. Buying non-essential products such as automotive and new houses is not a priority for most of the consumers now.
Delays and disruptions in production, exports and imports are also wielding a considerable impact on the steel market. China, which is the origin country of worldwide COVID-19 outbreak, is the largest producer, consumer and exporter of steel, worldwide. To contain the spread of the virus outbreak, China imposed a nation-wide ban from late January through late March this year, before easing restrictions in a phase wise manner from April onwards.