Graphite electrode price trend 2021 and graphite electrode manufacturer

The price of graphite electrodes is related to the steel industry. The increase in demand and consumption in the steel industry such as automobiles, electrical appliances, and construction will drive the price of graphite electrodes to rise.

Graphite electrode market

It is expected that the return on investment in the graphite electrode market will increase at an annual growth rate of 8% from 2020 to 2025. These are mainly determined by the increase in steel production in emerging countries and the increase in the use of electric arc furnace steelmaking. The promotion of energy conservation and environmental protection and the promotion of electric arc furnace technology in the Chinese market are expected to become an opportunity for the future market.
As of September 2020, the price of graphite has bottomed out, and the market price will rise slowly. It is recommended that steel mills can stock appropriately. From 2016 to 2019, the price of graphite rose to its peak. Many graphite manufacturers expanded and increased their production capacity, and market investors also entered the market, resulting in an increase in graphite electrode inventories. The price has been falling this year.

Graphite electrode use

Graphite electrodes are mainly used in electric arc furnaces (EAF) and ladle furnaces (LF) for the production of steel, ferroalloys and cast iron. Petroleum coke and needle coke are the main raw materials for graphite electrode production. Graphite electrode raw materials account for 60% of the cost, and the other is the cost of electricity. However, the supply of raw materials is tight, and the price increase has reached the price of graphite electrodes with almost no profit.
Compared with the cost of steelmaking, graphite electrodes account for only a small share. According to statistics, on average, about 2 kg of graphite electrodes are consumed to produce 1 ton of steel. Although the current price is very low, consumers are unlikely to increase inventory, and it is unlikely to trigger a surge in graphite electrode prices. So the current price is in a stable stage. The current market is on the buyer's side, and it is recommended that buyers with insufficient inventory can stock up.

Graphite electrode future market

The Asia-Pacific region will dominate the graphite electrode market share, of which China's consumption accounts for 60%, and only 800mm graphite electrodes will be imported in China (Dan carbon graphite electrodes have been put into production for 800mm diameter graphite electrodes this year). There are currently more than 40 graphite electrode companies in China, and at least 30 new carbon companies have entered the market in the past two years.

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80% of graphite electrodes in India are used in the domestic market. Japan's graphite electrode has always been a strong competitor, but Japan is a resource-scarce country, and the cost of graphite electrode production is relatively high.
It is expected that the price of graphite electrode raw materials will remain high or rise in the future. The demand for graphite electrodes in the Chinese and Indian markets will increase, the demand in Western countries will decline, and the overall global demand will increase slightly.
Graphite electrode price

Product (dia.mm)	Price(USD/MT)
RP<400mm	1500USD/MT
RP>400mm	2000USD/MT
HP<400mm	2200USD/MT
HP>400mm	2400USD/MT
UHP<400mm	3000USD/MT

Data source bid prices of various manufacturers. for reference only. The quotation is subject to the quotation of the graphite electrode manufacturer on the day.

Graphite electrode manufacturer

China has two largest graphite electrode plants put into production by steel companies, Fangda Carbon and Jilin Carbon. Dan Carbon Graphite Electrode (formerly Dandong Xinxing Carbon) is the top three graphite electrode manufacturer and the largest graphite electrode manufacturer. Internationally, there are graphite electrode companies including UCAR in the United States, HEG in India, TOKAI in Japan etc. Of all graphite electrode manufacturers, China has the lowest cost of graphite electrodes, followed by India and Russia.