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[Graphite electrode supplier]Why did the demand for graphite electrodes start to explode?

Pulished on May. 14, 2019

Why did the demand for graphite electrodes start to explode?

1) domestic demand: promote the development of electric furnace steel

Graphite electrode supplier shares that the main production processes of steel can be divided into two types: the long process (from iron ore and coke to pig iron to steel, also known as the blast furnace-converter process) and the short process (from scrap steel to steel, also known as the electric furnace steel process).

For a long time, the main reason for slow or even backward development of domestic electric furnace steel is scrap steel and the relatively high price of electricity, but the situation of excess power has been formed, China has stepped into the depreciation cycle of scrap steel, scrap resources will be gradually enriched, and then will continue to promote electric furnace steel into a new longer growth cycle.

From the perspective of international comparison, at present, China's electric furnace steel production accounted for only 6.07%, while the average level abroad reached 44.07%, of which the United States as high as 63%. With the development of all aspects of electric furnace steel, China's electric furnace steel industry has a broad space for development.

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2) external demand: export drives the prosperity of graphite electrode higher

The export of graphite electrodes has shown a trend of recovery. The export volume of graphite electrodes nationwide reached 28,700 tons, up 34.6% year-on-year, which is a rare and significant increase in recent years.

And electric furnace steel production from abroad to see (use abroad crude steel output minus the pig iron production to replace), the value, has appeared after 13 months of year-on-year growth, and the absolute value of march is nearly 10 years since the highest just below 4%, only 7.6% lower than in April, foreign electric furnace steel production rose 10.77% year-on-year, which fully shows that foreign electric steel starts rose significantly, the demand for graphite electrode is positive. At present, due to the domestic and foreign steel industry profit situation is still good, so it is expected that the output of foreign electric furnace steel, domestic graphite electrode high export trend will continue.

Conclusion: the demand for graphite electrode has been reversed and will increase year by year in the next few years.