Favorable factors:
A steady increase in steel production through the electric arc furnace (EAF) method is expected to drive the growth of graphite electrode market size.Graphite electrode (GE) is an integral component of steel production through the EAF process.
Due to the rising awareness among developing economies of environmentally friendly technology, the penetration of EAF-based steel production is expected to witness growth during the forecast period.
Furthermore, the growth of graphite electrode market size is further increased by graphite electrode application in gouging operations such as the formation of a bevel or groove, removing defects in castings, or welding by arc or gas process.Arc gouging removes the material by melting it with the heat of the arc between the carbon-graphite electrode and the base metal.Demand for battery raw materials is rising as electric vehicles gain popularity.
The most popular option for EV batteries is lithium-ion batteries which typically use graphite anodes as they deal well with the movement of lithium ions during charging and discharging. This increasing use of the lithium-ion battery is expected to drive the growth of graphite electrode market size.
Unfavorable factors:
(1) Environmental protection inspection limits the output of graphite electrodes.
With more and more attention to environmental protection, the relevant state departments have taken a series of measures to reduce emissions, control haze and protect the environment.
Since the fourth quarter of 2016, the Ministry of Environmental Protection has carried out intensive supervision and inspection on the prevention and control of air pollution in 28 cities around Beijing-Tianjin-Hebei and the Beijing-Tianjin-Hebei region, which has been called the largest directly organized action at the national level in the history of environmental protection in China.
(2) The production cycle of graphite electrode is long and its response to the market lags behind.
Due to the poor profits of graphite electrodes a few years ago, most enterprises were in a state of production reduction, unprepared for the sudden explosion of graphite electrode market. Enterprises began to increase production in March 2017 and released in the market from September to October.
Therefore, in the fourth quarter, the graphite electrode market fell rapidly, but when the heating season arrived and Henan, Hebei and Shandong stopped production, the price of graphite electrode began to rebound.
Post time: Jun-14-2022
