The graphite electrode scraps market has witnessed significant growth in recent years, driven by the increasing demand for recycled materials in various industries, particularly steel manufacturing. Graphite electrodes are primarily used in electric arc furnaces for steel production, and as the global demand for steel continues to rise, the need for efficient recycling solutions has become more prominent. The market for graphite electrode scraps is also gaining traction due to the rising awareness about environmental sustainability, with many industries focusing on minimizing waste and reusing raw materials. The reprocessing of graphite electrode scraps has proven to be a cost-effective method of supplying high-quality materials for various industrial processes, thus promoting the market's expansion.
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Moreover, the continuous advancements in recycling technologies and techniques have made it easier to process graphite electrode scraps efficiently, contributing to the market's growth. Countries across the globe are increasingly investing in recycling infrastructure and sustainable practices, further supporting the demand for graphite electrode scrap materials. Additionally, the automotive and chemical industries are also leveraging recycled graphite in the production of batteries and other high-demand applications, creating new opportunities for market players. As a result, the graphite electrode scraps market is expected to witness substantial growth in the coming years, driven by both technological advancements and a shift towards more sustainable manufacturing practices.
One of the primary drivers of the graphite electrode scraps market is the growing emphasis on recycling and sustainable manufacturing practices. Industries such as steel and aluminum production are increasingly adopting recycling processes to reduce raw material costs and decrease their environmental impact. As raw materials like graphite become scarcer, the demand for recycled graphite electrodes is expected to increase, making it a vital component for several industries. Additionally, the steel manufacturing sector, which is one of the largest consumers of graphite electrodes, is continually seeking innovative ways to improve efficiency and reduce operational costs. The adoption of recycled graphite electrode scraps presents a cost-effective solution, boosting market growth.
Another key driver is the increasing demand for electric arc furnaces (EAFs) in steel production. EAFs are more energy-efficient and environmentally friendly compared to traditional blast furnaces, further driving the need for graphite electrodes. As a result, the demand for graphite electrode scraps is expected to grow, especially since recycling these scraps can produce electrodes with high-quality properties suitable for EAFs. Furthermore, the automotive industry is also contributing to the growth of the graphite electrode scraps market, as recycled graphite is being utilized in electric vehicle (EV) battery manufacturing. With the rapid growth of the EV market, the demand for graphite electrode scraps is expected to expand across multiple industries, creating additional opportunities for market participants.
In recent years, the graphite electrode scraps market has been influenced by the growing trend of circular economy practices. Companies are increasingly focused on reducing their carbon footprints and enhancing their sustainability efforts by adopting a more circular approach to production and consumption. As a result, the recycling of graphite electrode scraps has gained significant traction, especially in industries like steel and aluminum production. With advancements in recycling technologies, the quality of recycled graphite electrodes has improved, making them more competitive with newly manufactured electrodes. This trend has also been fueled by the rising costs of raw materials, which encourages industries to seek more affordable and sustainable alternatives.
Another notable trend in the graphite electrode scraps market is the increasing collaboration between industry players and research institutions to develop innovative recycling technologies. These collaborations aim to improve the efficiency and quality of recycled graphite electrode materials, enabling companies to optimize their production processes. Additionally, there is a growing emphasis on the use of graphite in battery applications, especially for electric vehicles, which is contributing to the increased demand for graphite electrode scraps. As the global push for clean energy and sustainability intensifies, the market for graphite electrode scraps is likely to experience continued growth and innovation in the coming years.
One of the primary challenges facing the graphite electrode scraps market is the inconsistency in the quality of recycled graphite. While recycling technologies have improved, the quality of recycled electrode material can still vary depending on the processing methods used. This inconsistency can make it difficult for industries to rely solely on recycled graphite for certain applications, particularly in high-performance sectors like steel and aluminum production. To address this issue, significant investments in advanced recycling technologies are necessary to ensure uniformity in the quality of recycled graphite electrode scraps, which may drive up costs for recyclers.
Another challenge is the limited supply of high-quality graphite electrode scraps. While the market for recycled materials is expanding, the availability of high-quality scraps remains a bottleneck. This is mainly due to the fact that graphite electrodes are often used in small quantities in industrial processes, resulting in a lower volume of available scrap material. Furthermore, the transportation and handling of graphite electrode scraps can also pose logistical challenges, adding to the overall cost of recycling. As a result, market players must focus on improving the efficiency of the collection, processing, and transportation of graphite electrode scraps to meet growing demand.
The graphite electrode scraps market is highly diversified, with various types, applications, and end-user industries driving its growth. The market is segmented by the type of graphite electrode scraps, including used and unused electrodes. These materials are processed and repurposed across various sectors, such as steel manufacturing, aluminum production, and other industrial applications. Within the steel manufacturing segment, the recycling of graphite electrodes is vital for ensuring sustainable production methods, while the automotive and chemical industries are increasing their use of recycled graphite for specialized applications such as battery production.
Further segmentation of the market is based on the form in which the scraps are processed, including shredded, crushed, and whole graphite electrode scraps. Each form has distinct advantages in terms of ease of processing and application suitability. Additionally, the market is divided by recycling method into mechanical, chemical, and thermal recycling. The choice of recycling method plays a significant role in determining the quality and efficiency of the final product, with each method having its own set of advantages and limitations in terms of cost, energy consumption, and environmental impact.
The graphite electrode scraps market is experiencing strong growth across several regions, particularly in Asia-Pacific, where steel manufacturing and industrial applications are in high demand. Countries like China, India, and Japan are major consumers of graphite electrodes due to their large steel and aluminum industries. The region is also home to numerous manufacturers and recyclers of graphite electrode scraps, driving market growth. In addition, the focus on sustainable manufacturing practices and the adoption of circular economy principles is expected to further boost demand for recycled graphite electrodes in this region. Moreover, as countries in Asia-Pacific increase their investments in recycling technologies, the availability of high-quality graphite electrode scraps is expected to rise.
In North America and Europe, the graphite electrode scraps market is also expanding, driven by increasing environmental awareness and government regulations promoting recycling and sustainability. In these regions, the demand for recycled graphite electrode scraps is being supported by industries such as automotive and construction, where recycled materials are being increasingly utilized for manufacturing purposes. The growing emphasis on electric vehicles in these regions is also driving the demand for graphite, further contributing to the growth of the graphite electrode scraps market. As a result, the market is expected to continue evolving across these regions, with further investments in recycling infrastructure and technology improvements.
The future outlook for the graphite electrode scraps market is promising, as demand for recycled materials continues to increase across multiple industries. With the growing emphasis on sustainable manufacturing practices and the shift toward a circular economy, the market for graphite electrode scraps is expected to expand significantly in the coming years. Recycling technologies are expected to evolve, leading to more efficient and cost-effective methods of processing graphite electrodes, thereby increasing the availability of high-quality recycled materials. As industries increasingly turn to recycled graphite to reduce production costs and minimize waste, the market is anticipated to see further growth, creating new opportunities for market players.
Furthermore, the rapid advancements in electric vehicle technology and the rising demand for electric batteries are likely to drive the demand for graphite electrode scraps in the future. With the automotive industry becoming a key consumer of recycled graphite, the market for graphite electrode scraps is expected to experience sustained growth. As global markets continue to embrace sustainability and renewable energy, the demand for recycled graphite in battery production and other high-tech applications will create a long-term upward trend in the market. In this evolving landscape, innovation, research, and development will be critical factors for success in the graphite electrode scraps market.
1. Introduction of the Graphite Electrode Scraps Market
2. Executive Summary
3. Research Methodology of Verified Market Reports
4. Graphite Electrode Scraps Market Outlook
5. Graphite Electrode Scraps Market, By Application
6. Graphite Electrode Scraps Market, By End-User
6. Graphite Electrode Scraps Market, By Formulation
6. Graphite Electrode Scraps Market, By Distribution Channel
6. Graphite Electrode Scraps Market, By Source
7. Graphite Electrode Scraps Market, By Geography
8. Graphite Electrode Scraps Market Competitive Landscape
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9. Company Profiles
10. Appendix
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In the current scenario of rising CO2 emissions, environmentally friendly methods for steel production are gaining popularity world over. The emerging economies are imposing new green regulations on its steel sector for reducing the carbon footprint. This has been instrumental in the sudden jump in demand for Graphite Electrodes (GE), mainly for steel production through the eco-friendly EAF method. EAF method of steel production is one of the major applications of Graphite Electrodes. EAF method mainly uses steel scrap for production of crude steel.
Graphite electrodes are used in electric arc furnace (EAF) and ladle furnace (LF) for steel production. They are used to melt steel scrap. They transfer the electrical energy from the power supply to the steel melt in the EAF bath. It also has its application in aluminium, silicon metal production and other smelting processes.
The tip of these electrodes can reach up to -degree Celsius, which is approximately half the temperature of the sun. In addition to excellent mechanical strength, thermal expansion, thermal shock resistance and machinability, the high temperature helps in reducing the entire mass of steel.
Depending on the grade of the electrode, up to 6kgs of electrode is used to produce one tonne of steel. It is the mainstay of Steel production through EAF method as there are no substitutes available as opposed to silicon and aluminium.
There are different grades of Graphite Electrodes that are used. The Ultra High Power (UHP), High Power (HP) and Regular Power (RP). UHP captures major share of the total graphite electrode market as it is chiefly used in large EAF furnaces, which are becoming the norm in steel production.
Steel Production is a key driver for graphite electrodes. There are two ways to produce steel. The Blast Furnace (BOF) method and the Electric Arc Furnace (EAF) method. The EAF method is an eco-friendly one compared to the blast furnace method as it uses scrap steel and electricity as opposed to Iron ore & coal. World over, this method has been gaining prominence due to availability of steel scrap in developed nations.
The global graphite electrode market is set to reach US $15.3 billion by with the steel segment being the dominant application. The global EAF penetration is set increase to 33% by supporting the growth in the graphite electrode market. (View Source: Graphpite Electrode Market Report by Stratview Research)
The graphite electrode industry experienced a demand slack from - due to declining steel production after a decade of stable growth, leading to closure of 236 thousand tonnes of graphic electrodes capacity across the globe (other than China) along with significant fall in its price.
China, which accounts for 50% of global steel production (as per WSA), used the BOF method for 93% of its production in . However, after the crackdown on polluting units by the Chinese Government, the EAF penetration increased to 9.3% in , igniting a V shaped recovery for the graphite electrode market. This also led to a 5-fold increase in the Graphite Electrodes price in -18 to an all-time high of approximately US $ 13,500 per tonne in .
China’s steel production through EAF is expected to further increase to 17% by and 30% by which will further drive the demand for graphite electrodes.
The global growth for graphite electrode is set to improve. The Asia-Pacific region, mainly China, will be driving the growth during -. The European market, mainly Turkey will also generate significant demand.
The main raw material needed for production of graphite electrodes, is needle coke. Petroleum needle coke is used to manufacture UHP graphite electrode whereas Pitch needle coke is used for producing HP and RP graphite electrode.
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There is significant supply constraint for needle coke as there has been no capacity expansion for past many decades. Also, any immediate capacity addition is less likely as production capacity for needle coke takes a long time to come on-stream.
There is a competing source of demand for needle coke as well, which is the electric vehicles industry. Lithium Ion batteries, used in electric vehicles need needle coke for its production. The electric vehicle production is projected to increase to 12 million units in from the current 2.1 million units ().
By , about half the needle coke supply would be diverted to making batteries for electric vehicles, (Graftech estimates) exerting further pressure on the supply chain.
The graphite electrode industry has seen its share of ups and downs, registering stable growth from to . The subsequent decline in the next 5 years can be attributed to muted growth in steel production and mainly due to low share of EAF steel production in China. This severely impacted the demand-supply position, forcing many units to shut down leading to loss of global.
Excluding China, there are a handful of market players and we can say that the market is oligopolistic in nature. The top five players (Showa Denko, GRAFTech International Ltd., Fangda Carbon New Material Co. Ltd., Graphite India Limited, and Tokai Carbon Co., Ltd) captured more than half the market.
The sudden increase in demand in and subsequent price increase has led to market consolidation, with Showa Denko K.K. acquiring SGL GE which was the second largest supplier of Graphite Electrode and Tokai Carbon, acquiring 100% in the US subsidiary of SGL GE.
Graftech International is a major player, having the benefit of backward integration of manufacturing Petroleum Needle coke, which addresses the raw material constraint.
The prospects for any intermediate good is dependent on the demand from the end-industry. Until the quarter ended September 30, the realised price for graphite electrode (high grade) was $14,000 - per tonne. This has since corrected to $12,000, as per Graftech, largely because of the weakness in the steel market. Global steel production was down 1.3 percent quarter-on-quarter in the three months ended December . Further, the steel supply chain distortions caused by trade war between the US and China have added to the oversupply situation.
China, the largest graphite electrode maker, is resuming production after a seven-year break, with annual production of nearly 30,000 tonnes. With new needle coke and electrode capacities having been installed and commissioned in China, it is likely that electrode supply will be more balanced or to certain extent exceed as compared to demand. Hence, the market dynamics may reverse if enough Arc Furnace Steel capacity is not installed in China quickly (Source: -19 Annual Report: Graphite India Ltd).
With Stricter environmental regulation and abundant availability of electricity, and enough availability of domestic steel scrap, EAF Steel Production is set to increase in China. However, the financial burden, may influence the decision to shift to EAF steel making from the already efficiently running BOF steel making units in China. This may impact the market dynamics.
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