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Why the demand for graphite electrodes beginning to show an explosive growth?

Pulished on Sep. 04, 2019

What makes the demand for graphite electrodes start to explode? Following the China graphite electrode supplier would like to share with us.

1) domestic demand: push forward the development of electric furnace steel

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

Since October 2016, the vigorous supply-side reform of zero floor steel has caused the price of scrap steel to drop sharply, which leads to an inflection point in the comparison of economic benefits between electric furnace steel and blast furnace - converter steel. For a long time, the domestic electric furnace steel development is slow or even regressive important reason is the scrap steel and the electricity price is relatively high, but the electricity surplus situation has formed, China enters the scrap steel depreciation cycle, the scrap steel resources will gradually be rich, then will continue to promote the electric furnace steel into a new longer growth cycle. Eaf steel is more energy efficient, environmentally friendly and low-carbon than BBF steel, and its share of total steel production is expected to increase from 6% in 2016 to 30% in 2030. This is the law of industrial development, will promote the electric furnace steel into the trend of development era.


From the perspective of international comparison, China's electric furnace steel output is only 6.07%, while the average level of foreign countries is 44.07%, among which the United States is as high as 63%. With the development of eaf steel, there is a wide space for the development of eaf steel industry in China.

UHP graphite electrode

UHP Graphite Electrode

2) external demand: export promotes the prosperity of graphite electrode

Since August 2016, the export of graphite electrode has shown a trend of recovery. From January to March 2017, the national export of graphite electrode reached 28,700 tons, up 34.6% year-on-year, which is a rare significant growth 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, 2017, 1 - foreign electric steel production rose 10.77% in April, this fully shows that foreign electric steel starts rose significantly, the demand for graphite electrode is positive. At present, because the domestic and foreign steel industry profit situation is still good, so it is expected that the output of foreign furnace steel, domestic graphite electrode high export trend will continue.

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

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