Graphite electrodes: Key market research findings
- APAC dominates the market geographically
- Key vendors – SGL Carbon SE, Graphite India, Showa Denko Carbon, Nippon Carbon, and GrafTech
- Industrialization and urbanization drive market growth
Technavio’s market research analysts predict the global market for graphite electrodes to reach almost 2 million metric tons by 2020, in terms of volume, by 2020. The market is driven by the ongoing industrialization and urbanization of economies across the globe. The infrastructure sector has driven the steel production capacity globally, which has fueled the demand for graphite electrodes. The relationship between urbanization and steel is expected to further increase the demand for steel globally. During 2015, the global graphite electrodes market was dominated by the APAC with a market share of around 69%. The growth in APAC is dominated by China, Japan, and India. An increase in the expenditure on infrastructure in the emerging economies in the region will fuel the growth of the graphite electrodes market in APAC.
The new market research report from Technavio presents a breakdown and analysis of the graphite electrode segments based on the application.
“Growth in infrastructure and construction, oil and gas industry, and automotive industries varies across regions, which is fueling the demand for steel globally. In terms of steel demand, infrastructure and construction are the dominant sectors. Most of the growth in the automotive industry will be accounted for by China, the US, Brazil, India, and Japan. Increasing capital expenditure on upstream gas and oil offers a significant opportunity to provide anti-corrosive, high-value products for oil wells and pipelines,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research.
Graphite electrodes are largely used in EAF to manufacture steel. These electrodes act as conductors of electricity in the furnace and generates heat to melt scrap metal such as iron ore and other raw materials that are used in steel production. Graphite electrodes are the only products that have a high electrical conductivity and the capability to sustain high levels of heat in an EAF to produce steel. They are an essential part of steel production in EAF, and they do not have any commercially viable substitute.
The key vendors in the graphite electrodes market include SGL Carbon SE, Graphite India, Showa Denko Carbon, Nippon Carbon, and GrafTech. The market vendors faced a threat from Chinese graphite electrode producers that were exporting products at relatively lower rates. Increasing export will influence margins for domestic and local vendors. However, the implementation of anti-dumping duty and the scarcity of raw materials for graphite electrodes will impact the steel melting industry for steel production.
A more detailed analysis is available in the Technavio report, Global Graphite Electrodes Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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