In 2019, the market value is US $6564.2 million, which is expected to reach US $11356.4 million by 2027; from 2020 to 2027, the compound annual growth rate is expected to be 9.9%.
Graphite electrode is an important part of EAF steelmaking. After a five-year period of serious decline, the demand for graphite electrode will surge in 2019, and the output of EAF steel will also increase. With the increasing awareness of environmental protection in the world and the strengthening of protectionism in developed countries, publishers predict that the output of EAF steel and the demand for graphite electrode will increase steadily from 2020 to 2027. The market should keep tight on the increase of limited graphite electrode capacity.
At present, the global market is dominated by the Asia Pacific region, accounting for about 58% of the global market. The high demand for graphite electrodes in these countries is attributed to the sharp rise in crude steel production. According to the data of the world iron and Steel Association, in 2018, the crude steel output of China and Japan were 928.3 million tons and 104.3 million tons respectively.
In the Asia Pacific region, there is a large demand for EAF due to the increase of scrap and power supply in China. The growing market strategy of Companies in the Asia Pacific region has encouraged the growth of graphite electrode Market in the region. For example, Tokai Carbon Co., Ltd., a Japanese company, acquired SGL Ge holding GmbH’s graphite electrode business for us $150 million.
Several steel suppliers in North America are highly concerned about investment in steel production projects. In March 2019, US steel suppliers (including steel dynamics Inc., US Steel Corp. and ArcelorMittal) invested a total of US $9.7 billion to increase production capacity and meet national demand.
Steel dynamics Inc. has invested $1.8 billion to build a plant, ArcelorMittal has invested $3.1 billion in U.S. plants, and US Steel Corp. has invested about $2.5 billion in their respective activities. The increasing demand for graphite electrodes in North American steel industry is mainly due to its higher thermal resistance, higher durability and higher quality.
Work cited
“Global Graphite Electrode Rod Market Demand Status 2020 Share, Global Market Trends, Current Industry News, Business Growth, Top Regions Update by Forecast to 2026.” www.prnewswire.com. 2021 Cision US Inc, Nov 30, 2020. Web. March 9, 2021.
Post time: Mar-09-2021