Global Graphite Electrode Market Overview

Fortune Business Insight – 28 Oct 2025

The global graphite electrode market size was valued at USD 4.25 billion in 2024. The market is expected to grow from USD 4.48 billion in 2025 to USD 6.95 billion by 2032, recording a CAGR of 6.48% during the forecast period.

Graphite electrodes are highly conductive rods used in Electric Arc Furnaces (EAFs) for steel production, refining steel from scrap, and processing other ferrous and non-ferrous metals. They are manufactured primarily from petroleum coke and prized for their ability to withstand high temperatures and intense electrical currents. These electrodes are essential in the manufacturing of steel as they facilitate the melting process by focusing intense heat on the materials. Additionally, they find applications in silicon and aluminum smelting, thereby proving indispensable in the production of these metals. Their high conductivity, durability, and resistance to thermal shock also make them ideal for use in the electrochemical industry for various applications, including the production of chlor-alkali.

Asia Pacific (Dominant Region): Held a 69.73% market share in 2023 and remains the fastest-growing region. High steel production in China and India, infrastructure expansion, and government push for electric vehicles and battery tech are major drivers.

North America: Growth driven by automotive and aerospace industries, and rising demand for sustainable EAF-based steel production.

Europe: Increasing shift toward green steel production, EAF adoption, and strict carbon emission norms fueling electrode demand.

Latin America: Growth driven by infrastructure development and expansion in the steel sector, especially in Brazil and Mexico.

Middle East & Africa: Moderate growth supported by infrastructure investment and increased adoption of EAF technology.

The COVID-19 pandemic significantly impacted the market, primarily due to disruptions in the steel industry, which is a key consumer of graphite electrodes. With steel production rates falling globally, the product demand experienced a notable decline. This downturn was further exacerbated by logistical challenges and supply chain delays, affecting graphite electrode distribution and manufacturing. However, the situation also accelerated innovations and adaptations in the market to stabilize and eventually recover.

Graphite electrodes also have significant non-steel applications due to their unique properties, such as high conductivity, exceptional thermal resistance, and chemical stability. They are being increasingly used in the production of Electric Arc Furnaces (EAFs) for smelting various materials, including silicon and aluminum, which are pivotal in the electronics and automotive industries. Moreover, their excellent machining capabilities enable the production of detailed and precise shapes for electrochemical applications, such as battery production and water treatment processes. This feature has opened up broad prospects for graphite electrodes in the energy storage and environment sectors. Furthermore, these electrodes, enhanced by manufacturing advancements, are being increasingly utilized in green energy projects due to their durability and efficiency. Their ability to function at high temperatures without performance degradation positions them as a preferred choice for pioneering applications within the aerospace sector.

The growing need for graphite electrodes in the steel industry will propel the market’s expansion. These rods play a critical role in this industry, primarily through the Electric Arc Furnace (EAF) method of steel production. These electrodes are utilized to conduct electricity, thereby generating high temperatures needed to melt scrap steel. The exceptional heat resistance and conductivity of graphite makes it an ideal material for this purpose, allowing for efficient melting processes. Additionally, the use of graphite electrodes in EAFs contributes to recycling efforts as they enable the melting of scrap steel, thus promoting sustainability within the industry. Furthermore, their structural integrity under high temperatures ensures a consistent production process, leading to the manufacturing of high-quality steel. This combination of efficiency, sustainability, and quality enhancement makes it indispensable in modern steel manufacturing practices.

The graphite electrode market is significantly influenced by the prices of raw materials, such as petroleum coke and needle coke, which are crucial for production. Volatility in these prices can directly affect manufacturing costs, leading to fluctuations in pricing. As these raw materials constitute a major portion of the production expenses, any increase in their prices can narrow the profit margins of electrode manufacturers. Consequently, they may pass on these increased costs to consumers, impacting the overall market dynamics. Additionally, the availability of raw materials also plays a vital role as shortages can lead to production delays, further affecting market supply and pricing, and potentially hindering the graphite electrode market growth.

 

Link: https://www.fortunebusinessinsights.com/graphite-electrode-market-110978