China Graphite Electrode Market Status and Development Trend Forecast Analysis in 2022

Graphite electrode is a conductive material mainly used in steel smelting. The support of domestic policy end for electric arc furnace short process steel making instead of converter steel making has driven the increase of demand for graphite electrode in China's steel industry.

Market Status

The output of graphite electrode in China is growing rapidly from 2017 to 2019, and the total output reaches 801,000 tons in 2019, with a compound annual growth rate of 20.4%. 2020 is affected by industry losses and epidemic, and the output decreases slightly by 4.4% year-on-year. 2021 output reaches 1,009,000 tons, with a capacity utilization rate of 59%, which is a significant improvement over 2020, but still at a low level and is expected to reach 1.21 million tons in 2022.

China's graphite electrode consumption shows an overall growth trend, from 443,600 tons in 2017 to 588,100 tons in 2020, with a CAGR of 9.86%, and is expected to reach 743,200 tons in 2022.

Development trends

1. Development of ultra-high power electrode

The development of graphite electrode to ultra-high power electrode is the future trend. As the demand for ultra-high power electric arc furnace increases, ultra-high power graphite electrode will also gain further development space. Compared with the ordinary power electric arc furnace, the labor efficiency of large capacity ultra-high power electric arc furnace is higher and the comprehensive cost is relatively lower. When the power of electric arc furnace is increased, its maximum allowable current of graphite electrode for electric arc furnace also puts forward higher requirements, and the maximum allowable current of graphite electrode directly depends on the diameter of graphite electrode.

2. Tend to short process steelmaking

The national industrial policy is clear that the development of short process steelmaking is the general trend. Electric furnace steel (short process steelmaking) usually refers to the steel produced by electric arc furnace, its high efficiency, relatively small pollution, relatively low cost characteristics in line with the national environmental protection policy guidance. The demand for ultra-high power graphite electrodes, as one of the main materials of electric arc furnace, is bound to increase further under the impetus of this demand.