The UHP Graphite Electrode Market is expected to register a CAGR of greater than 5% during the forecast period.
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UHP Graphite Electrode market was hard hit due to the repercussions of Covid-19 on the manufacturing sector across the globe. As the economic activities declined, the steel demand from the automotive and construction industry reduced adversely, leading to a direct impact on the demand for UHP Graphite Electrodes. On the positive front, the market witnessed a substantial rebound in with an active pick-up in economic activities, leading to a gradual drop in steel demand. In line with consistent development initiatives being undertaken across the globe, the expected rise in the steel demand is expected to keep the consumption of the UHP Graphite Electrode market appreciable in .
Decarbonization has been among the key focus of the countries over the past few years. Steel is one of the most important constructions and engineering materials that form the manufacturing sector's core pillars in various economies. The steel industry is currently looking for ways to reduce its carbon footprint from both economic and environmental perspectives. To limit the pollutants from the steel manufacturing process, companies have been continuously adopting the 'Electric Arc Furnace Route,' which uses scrap steel and electricity for steel production, expelling minimum waste during the process.
The steel industry is one of the most carbon and energy-intensive industries. Increasing the share of steel production from electric arc furnaces (EAF) by using renewable energy sources is one of the high potential ways to decarbonize the industry.
In , steel production from blast furnaces accounted for 70% of the total steel production worldwide, while 30% of steel was produced from the electric arc process. Raw steel production increased by nearly 6% in concerning and is expected to increase further in the forecast period in line with development plans in major economies across the globe.
The UHP graphite electrode market will likely grow globally due to all these factors during the forecast period.
Understand The Key Trends Shaping This Market Download PDFThe Asia-Pacific region is expected to dominate the market. In the region, China is the largest economy in terms of GDP. China and India are among the fastest emerging economies in the world.
China is the world's leading producer and exporter of steel globally. The country dominates globally, representing nearly 56% of total crude steel production. China has been looking for ways to decarbonize the steel sector so that it does not need to cap steel production in line with the government's stringent pollution standards. In , China approved the construction of 43 new EAFs, which are expected to be commissioned between -. By , China plans to account for 15-20% of the total steel production by EAF route, which is expected to lead to a substantial increase in the demand for UHP Graphite Rods in the market.
India is regarded as the second-largest steel-producing nation behind China. In , India's Crude Steel Production Stood at 118 million tonnes, depicting a growth of 18% from the previous year. The substantial growth observed in the Indian Steel manufacturing sector has been due to ample raw materials and cost-effective labor. Increasing government emphasis on decarbonizing the steel sector is expected to elevate the adoption of the electric furnace method for steel production, thereby propelling the demand for UHP Graphite Electrodes in the forecast period
Due to all such factors, the market for UHP Graphite Electrode in the region is expected to steady growth during the forecast period.
Get Analysis on Important Geographic Markets Download PDFThe UHP Graphite Electrode Market is consolidated, with the top five players accounting for nearly 45% of the global market. Some of the major players in the market include GrafTech International, FangDa Carbon New Material Co. Ltd, Showa Denko K.K, ZHONGZE Group, and Nantong Yangzi Carbon, among others (not in any particular order).
GrafTech International
Fangda Carbon New Material Co. Ltd
Showa Denko K.K.
ZHONGZE GROUP
Nantong Yangzi Carbon
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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5. MARKET SEGMENTATION
6. COMPETITIVE LANDSCAPE
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
UHP Graphite Electrode is a type of Graphite Electrode designed for high performance in the electric arc furnace industry. UHP Graphite Electrode is mainly composed of high valued-needle coke derived from petroleum or coal tar. The Electrode is majorly utilized for the steel recycling and production process in the electric arc furnace. UHP Graphite Electrodes are known for their stable performance and cost-saving advantage in steel-making and recycling. UHP Graphite Electrode is also widely used in the smelting process of yellow phosphorous and silica. The UHP Graphite Electrode Market is segmented by application and geography. By Application, the market is segmented into electric arc furnaces, basic oxygen furnaces, and non-steel. The report also covers the market size and forecasts for the UHP Graphite Electrode Market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (kilo tons).
Application Electric Arc Furnace (EAF) Basic Oxygen Furnace (BOF) Non-Steel Geography Asia-Pacific China India Japan South Korea Rest of Asia-Pacific North America United States Canada Mexico Europe Germany United Kingdom Italy France Rest of Europe South America Brazil Argentina Rest of South America Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa Application Electric Arc Furnace (EAF) Basic Oxygen Furnace (BOF) Non-Steel Geography Asia-Pacific China India Japan South Korea Rest of Asia-Pacific North America United States Canada Mexico Europe Germany United Kingdom Italy France Rest of Europe South America Brazil Argentina Rest of South America Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa Need A Different Region or Segment? Customize NowWhat is the current UHP Graphite Electrode Market size?
The UHP Graphite Electrode Market is projected to register a CAGR of greater than 5% during the forecast period (-)
Who are the key players in UHP Graphite Electrode Market?
GrafTech International, Fangda Carbon New Material Co. Ltd, Showa Denko K.K., ZHONGZE GROUP and Nantong Yangzi Carbon are the major companies operating in the UHP Graphite Electrode Market.
Which is the fastest growing region in UHP Graphite Electrode Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (-).
Which region has the biggest share in UHP Graphite Electrode Market?
In , the Asia-Pacific accounts for the largest market share in UHP Graphite Electrode Market.
What years does this UHP Graphite Electrode Market cover?
The report covers the UHP Graphite Electrode Market historical market size for years: , , , , and . The report also forecasts the UHP Graphite Electrode Market size for years: , , , , and .
Statistics for the UHP Graphite Electrode market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UHP Graphite Electrode analysis includes a market forecast outlook for to and historical overview. Get a sample of this industry analysis as a free report PDF download.
PFB the notes from the conference, I had taken:
Global Graphite Electrode Conference being organized by SteelMint is presently underway in Mumbai where industry experts from across the globe have gathered to express the views and opinion on the volatile GE industry. Live coverage of Question and answer session of the Conference below.
How will the industry be impacted with China continuously adding EAF capacity?
In China presently 57 EAF plants are coming up with each having about 1 to 1.25 mnt capacity per plant. That accounts for about 60 to 70 mnt of fresh capacity. There are around 35 plants already existing. China is substituting closed capacity with EAF. Demand is visibly high there. There will certainly be an impact on demand side but we cannot assume that supply of Graphite Electrode would be restricted. There is a demand supply mismatch which would last for between 2 to 3 years. There are two drivers behind EAF development in china, first is to avoid environmental issue in future. And the other is to compensate for closed capacity. Chinese can hinder the GE export from China to protect the steel industry. It remains an important raw material.
What is the contribution of Chinese GE suppliers?
It is difficult to track the Chinese market right now. The precise amount of GE being produced is not available with us right now. We need to understand that quality of Chinese product is different. Ultra high power GE is being produced by India, Japan etc. but the production of this is limited in China. EAF producers in China itself avoid using entirely Chinese made electrode. China could play a role but Graphite capacity in China has also been closed. It is a possibility that more capacity can be closed.
What is synthetic graphite how can it disruptive? Are there new capacity?
Natural graphite has a different structure. The molecular structure is such that it can withstand a lot of heat. It is not very likely a substitution can happen any time soon.
India commands 25% global market share? What if the Indian Government imposes 20% export duty on GE to protect its domestic steel industry?
Graphite India and HEG, the two India suppliers were selling their product at differential prices to large producers and to those procuring a limited quantity. It is due to this differential pricing the smaller steel producers approached the Indian government and suggested that an export duty be imposed as protective measure.
The Govt. did consider the suggestion. However now of late pricing has been equalized for all Indian producers. Now this issues of imposing export duty is not be looked at very serious of late.
What are chemical components which can reduce cost for EAF?
You need energy to make steel. You can take either for Chemical energy through exothermic reactions. Or electric energy which needs GE. Technically if it is viable they can use high speed injection for carbon. That way more energy is coming from chemical reaction. However it is not an easy task. If a study is done you can arrive at a formula to balance both. However in the past GE was not a cost factor so no research has been done in this. But at this point in time there can be a lot of attention drawn towards these estimates and cost analysis.
Are there any alternatives being seen in place of EAF production to mitigate rising cost of GE?
Not right now. BOF and LF combination can be considered. But still these industries are polluting. This can be helpful in the short term.
Is any new GE entrant expected as the industry is in strong upcycle?
–Technology restriction, it was shared by US and German companies in INDIA, the possibility of the exchange happening is limited. No capacity has been seen in china also. Not likely. Graphetization needs a 20 feet bunker and other furnaces. This setup cant be done by everyone.
–Equipment not available. It needs customized requirement. Last equipment was supplied almost 40 years back when the last GE plant was set up in India.
Export Duty Not Good For Indian Buyers
Graphite India and HEG account for close to 25% of the world production, and if the situation arises of Graphite Electrode prices rising by 20% – it will be easily absorbed by the global market.
Hence, we believe Indian buyers will end up paying more, in line with international prices if any duty is ever imposed.
NEEDLE COKE
In a recent article published by IC Carbon, CCIA( China Carbon Industry Association) reported that Baosteel Chemical Co. is expected to have stable production in January, with needle coke production estimated at - MT and corresponding price of RMB 22,000/MT. It is estimated that the output of needle coke will increase by 20% in .
The user will be mainly anode material manufacturer and graphite electrode manufacturer. In addition, the company will conduct a 25-day overhaul in April.
A longstanding limiting factor to the increase of graphite electrode production is the supply of needle coke, which is limited to a few refineries around the world with only one independent needle coke production facility in the world.
Shortage of needle coke, a form of calcined petroleum coke (CPC), is exacerbating the ability of graphite electrode producers currently operating, to increase production rates to meet demand. Needle coke represents approximately 70% of the input cost of graphite electrode production.
According to China Carbon Industry Association (CCIA), needle coke price sky-rocketed by over 726 percent in while imported needle coke price lagged behind in rise given its longer order time.
CCIA data shows the total production of China’s needle coke is 143,000 MT in and needle coke imports were recorded at 170,000 MT. In view of uplifting performance, there has been an expansion boom in China’s needle coke market.
According to CCIA, eight needle coke enterprises, including Jinzhou Chemical, Jingyang Chemical, Baitailong, Hongte Chemical, Baosteel Chemical, Yida New Materials, Fangda C-Chem, etc. have released production resumption, expansion and new production plans. China’s needle coke demand is expected to reach 600,000 MT by