Overview of the Graphite Electrode Market
The global market size of graphite electrodes will reach 30.38 billion US dollars in 2026 and will maintain a strong growth trajectory, reaching 41.4 billion US dollars by 2035. The compound annual growth rate from 2026 to 2035 will be 3.5%.
Graphite electrodes are an important component of an electric arc furnace (an electric furnace) which is used for the production of steel and other metals. These electrodes are mainly made of graphite (a form of carbon) because graphite has high electrical conductivity and can withstand high temperatures and intense heat. Graphite electrodes play a crucial role in modern steelmaking processes, and their quality and performance are of vital importance for the efficiency and cost-effectiveness of the electric arc furnace operation.
In recent years, the market for graphite electrodes has been growing steadily. The graphite electrode market is influenced by various factors, including the health of the global steel industry, the demand for electric arc furnaces (EAF) for
Main Discovery
Market size and growth: The global market size of graphite electrodes was 30.38 billion US dollars in 2026, and it is expected to further increase to 41.4 billion US dollars by 2035. The compound annual growth rate from 2026 to 2035 is projected to be 3.5%.
Main market drivers: The expansion of electric arc furnace steelmaking has supported demand. 28% - 47% of the world's steel is produced through EAF, and 73% - 85% of the electrodes are used in furnaces.
Main market limitations: The concentration of needle coke supply and competition in the battery industry affect the production cost of electrodes. The material usage accounts for 55%, and the price fluctuates by 20% annually.
Emerging trends: The application of ultra-high power electrodes in steelmaking is increasing, occupying 52% - 69% of the market share, and supporting higher furnace efficiency and conductivity.
Regional leadership: Driven by the continuous expansion of steel production and the expansion of electric arc furnace capacity, the Asia-Pacific region dominates production and consumption, accounting for 59% - 62% of the share.
Competitive landscape: Leading manufacturers collectively control approximately 40% - 50% of the global production capacity. With the support of technological upgrades and capacity expansion, the production has increased by 30%.
Market segmentation: The conventional power graphite electrodes segment is still related to small furnaces, accounting for approximately 20% - 30% of the overall electrode demand for industrial smelting applications.
Latest progress: Production expansion and modernization measures have increased the electrode manufacturing capacity by nearly 30%, improving efficiency and supporting the growing global steel demand.
The impact of COVID-19
The global COVID-19 pandemic is unprecedented and shocking. Compared to the pre-pandemic levels, the demand for graphite electrodes in all regions has exceeded expectations. The sudden increase in the compound annual growth rate is attributed to the growth of the market and the recovery of demand to the pre-pandemic level after the pandemic.
The pandemic led to a decline in global economic activities, affecting major steel-consuming industries such as construction and automobiles. As a result, steel demand and production decreased, directly impacting the demand for graphite electrodes used in electric arc furnaces for steelmaking.
Latest trend
The graphite electrode market is as dynamic as any other market. The Internet of Things (IoT) and edge computing technologies remain a prominent trend. This enables real-time data processing, reduces latency, and enhances the overall efficiency of building automation systems.
According to data from the World Steel Association, in 2023, electric arc furnace steelmaking accounted for approximately 28-30% of global crude steel production, with steel output exceeding 650 million tons. Each ton of steel produced by an electric arc furnace typically consumes 1-2 kilograms of graphite electrodes, and approximately 80-85% of the global total demand for graphite electrodes is generated by the steel industry. The increasing share of scrap steel in steelmaking is strengthening the demand for graphite electrodes in major steel-producing economies.
According to the data from the Industry Carbon Materials Association, due to the increasing adoption of large-capacity electric arc furnaces, ultra-high power (UHP) graphite electrodes account for nearly 50-55% of the total global graphite electrode production. The modern UHP electrodes used in steelmaking furnaces typically have diameters ranging from 200 millimeters to 700 millimeters, with working currents as high as 150,000 amperes, enabling the furnaces to reach temperatures above 2,700°C during the steelmaking process.
Market Segmentation of Graphite Electrodes
By type
According to their types, the market can be divided into ordinary power graphite electrodes, high-power graphite electrodes and ultra-high power (UHP) graphite electrodes.
Conventional power graphite electrodes: These conventional power graphite electrodes are specifically designed for standard electric arc furnace operations at medium current levels. They provide reliable conductivity and stable performance for steel production with a lower power input.
High power graphite electrodes: These high power graphite electrodes are intended for handling higher power loads in more demanding furnaces and enhancing thermal resistance. Compared to conventional power electrodes, they improve melting efficiency and support faster steelmaking processes.
Ultra-high power (UHP) graphite electrodes: Ultra-high power graphite electrodes are specifically designed for use in modern electric arc furnaces with extremely high current densities. Their outstanding strength, high purity, and low resistance ensure maximum productivity and durability in heavy-duty operations.
According to the application
According to the application, the market can be divided into arc furnaces, blast furnaces and others (such as phosphorus, silicon, etc.)
In terms of services, electric arc furnace steel is the largest market segment. Graphite electrodes play a crucial role in the steelmaking process, especially in electric arc furnace (EAF) steelmaking. The use of graphite electrodes in electric arc furnaces is essential for melting scrap steel and producing high-quality steel products.
Arc: An arc is when an electric current continuously flows through the air or gas between two electrodes, generating extremely high heat and a bright light. It is commonly used in welding and in electric arc furnaces for melting metals.
Furnace steel: Furnace steel is produced by melting iron and scrap metals in a high-temperature furnace. This process helps to control the composition and quality of various industrial steel products.
Others: Other methods include alternative technologies for heating or producing metals that do not involve arcs or standard furnace steel processes. These methods may use different energy sources or specialized equipment.
Driving factors
The demand for steel production has increased due to the growing market demand.
The main driving force for the graphite electrode market is the demand for steel. Graphite electrodes are a key component of electric arc furnaces (EAFs) and are widely used in steel production. The growth or contraction of the global steel industry significantly affects the demand for graphite electrodes. The demand for steel production is the fundamental factor influencing the graphite electrode market. As the steel industry grows under the impetus of industries such as construction and infrastructure development, the demand for graphite electrodes for electric arc furnaces also increases. The close relationship between these industries makes the demand for steel production the main driving force for the graphite electrode market.
According to data from the World Steel Association, the electric arc furnace technology accounts for approximately 28-30% of global steel production. In developed regions such as North America, this proportion exceeds 65-70% of the total steel output. Since graphite electrodes are an important component of the electric arc furnace, the increasing share of scrap steel in steelmaking directly increases the global consumption of electrodes.
Based on the furnace operation data reported in the filings with the US Securities and Exchange Commission, the electric arc furnace consumes approximately 1.7 kilograms of graphite electrodes for every ton of steel produced. Additionally, during each melting cycle, the quality of the electrodes decreases by about 5-10% due to oxidation and damage, necessitating constant replacement to support the stable demand of steel manufacturing plants.
Infrastructure development affects market demand.
The growth of infrastructure development projects, including construction and transportation, helps increase the demand for steel. This, in turn, affects the demand for graphite electrodes used in electric furnaces for steel production. Construction of transportation infrastructure such as roads, railways, ports, and airports requires a large amount of steel. With the development of transportation infrastructure, the demand for steel and graphite electrodes is also increasing. The growth of infrastructure creates a positive feedback loop for the steel industry, influencing the demand for graphite electrodes. As countries invest in and upgrade their infrastructure, the demand for steel produced by electric arc furnaces leads to a corresponding increase in the demand for graphite electrodes. This interconnection makes the growth of infrastructure an important driving force for the graphite electrode market. Thus, this factor leads to the growth of the graphite electrode market.
