In terms of revenue, the global graphite electrode market was valued at US$ 6,564.2 million in 2019 and is expected to reach US$ 11,356.4 million by 2027 with a CAGR growth rate of 9.9% from 2020 to 2027.

Graphite electrode, which is primarily used in steel production via Electronic Arc Furnace (EAF), saw a massive wave in its prices in the past one year. This was due to an unexpected divergence in the demand-supply dynamics. In the last 4–5 years, the global graphite electrode industry reeled from overcapacity. This led to weak graphite electrode prices as the demand, which depends on steel production through the EAF route, was down due to slow demand growth, excessive supply from China, and higher EAF steel production cost as opposed to Basic Oxygen Furnace (BOF) route. Factors such as transition in Chinese steel industry and concerns regarding traditional Induction Furnace Green House Gas (GHG) emissions are driving the growth of the graphite electrode market. However, limited supply of needle coke is hindering the growth of graphite electrode market.

However, the supply and demand witnessed a significant shift by June 2017, with the market demand exceeding the supply, mostly in China. An abrupt change in the industry’s fortune was primarily driven by China’s environmental control policy, which led to a phase-out of old, less efficient, and polluting units (across industries). The rule hit China’s steel and graphite electrode manufacturing companies, and ~170 million tonnes of steel capacity (~15% of China’s total installed capacity) and nearly 200,000 tonnes of graphite electrode manufacturing capacity sealed during 2016–2017. This had a significant impact on the global graphite electrode industry, which, in turn, positively impacted the graphite electrode market.
The graphite electrode market has been segmented on the basis of product type, application, and geography. Based on product type, the graphite electrode market is segmented into high power, ultra-high power, and regular power. Needle coke is the primary raw material for the production of graphite electrodes. There are two types of needle coke: petroleum needle coke and pitch needle coke. Petroleum needle coke is produced through decant oil (<0.5% sulfur) or sweet crude. Pitch needle coke is made from coal tar pitch, which is mainly used by graphite electrode manufacturers in China. The ultra-high power segment is estimated to hold the largest graphite electrode market share. In terms of application, the electric arc furnace segment is anticipated to grow at the highest CAGR during 2020-2027.

EPM Group; GrafTech International Ltd; Graphite India Limited; HEG Ltd; Kaifeng Carbon Co. Ltd; Zhongping Energy & Chemical Group (KFCC); Nantong Yangzi Carbon Co., Ltd.; Nippon Carbon Co Ltd.; Sangraf International; SHOWA DENKO K.K.; and Tokai Carbon Co., Ltd.; are among the key players in the graphite electrode market.

Impact of COVID-19 Pandemic on Graphite electrode Market
According to the latest situation report from the World Health Organization (WHO), the US, India, Spain, Italy, France, Germany, the UK, Russia, Turkey, Brazil, Iran, and China are among the worst affected countries due to COVID-19 outbreak. The outbreak first began in Wuhan (China) during December 2019, and since then, it has spread at a fast pace across the world. The COVID-19 crisis is affecting the industries worldwide, and the global economy is anticipated to take the worst hit in the year 2020 and likely in 2021. The outbreak has created significant disruptions in the steel industry. The sharp decline in the international trade is negatively affecting the growth of the graphite electrode. The production shutdowns, restrictions on supply chain, procurement management, labor scarcity, and border lockdowns to combat and contain the outbreak have adversely affected the construction sector. The production slowdown in the construction industry is directly affecting the adoption of various steel products, thus impacting the graphite electrode market.

Overall size of the graphite electrode market is derived using primary and secondary sources. The research process begins with extensive secondary research using internal and external sources to obtain qualitative and quantitative information related to the graphite electrode market. It also provides the overview and forecast for the global graphite electrode market based on all segmentation provided concerning five primary regions such as North America, Europe, Asia Pacific, Middle East & Africa, and South America. Also, primary interviews were conducted with industry participants and commentators to validate and analyze the data. The participants who take part in such a process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specialized in the graphite electrode market.