Washington (Esticast Research & Consulting) -- 4 Jan 2018
The global graphite electrodes market was valued at $5.04 billion in 2016, and is projected to reach $27.5 billion by 2022, growing at a CAGR of 28.4% from 2017 to 2024. In 2016, the ultra-high graphite electrode segment generated the highest revenue share in the global graphite electrodes market. The supply of graphite electrodes from China has decreased significantly in past couple of years, however, the country retains its position amongst top three consumers of graphite electrodes in the world.
Recently, the graphite electrode prices have risen sharply, impacting both the steel and aluminium industries. Rising prices are majorly a result of sharp cut in supply of graphite electrodes from China. In the present scenario, the demand for graphite electrodes is significantly higher, compared to its supply.
The growth of steel-oriented sectors such as construction, automotive, infrastructure, aerospace & defence, and many others has led to a surge in the consumption and production of steel. Now a days, manufacturers have opted for electric arc furnaces (EAF) for manufacturing steel, which requires graphite electrodes as a main component. Being a prerequisite of steel manufacturing process or smelting process via EAF route, the demand for graphite electrodes is linked to the demand for EAF.
Graphite electrode production in China has fallen drastically, which in turn has resulted into manifold increase in its prices. China, which was a major manufacturer and supplier of graphite electrodes to different countries worldwide is expected to start importing the same in order to meet its own market demand, after it almost stopped the manufacturing of graphite electrodes recently. The country is amongst major steel producers of the world and hence, is inevitably, also a major consumer of graphite electrodes.
Graphite electrode supply cut from China has resulted into manifold increase in prices of graphite electrodes.
Developing nations such as India and Middle East have the highest exposure to EAF route, which in turn is expected to offer humongous opportunities for the market growth. China is expected to start importing graphite electrodes from countries such as India in near future.
Market players are focusing on mergers and acquisitions, in order to attain large share of the global market.
North America led the global graphite electrodes market, in terms of consumption, holding 30% of the total share in terms of value.