Graphite electrode industry will usher in vigorous development

Graphite electrode prices will usher in a strong rise. Graphite electrode is divided into different models (ordinary power, high power, ultra-high power), with the diameter of kg and carbon neutral requirements, ultra-high power graphite electrode is the future trend, of course, its production will be more difficult. According to the national industrial policy on graphite electrode, it is clearly pointed out that the development of ultra-high power electric arc furnace is the general trend, as one of the main materials of ultra-high power electric arc furnace, ultra-high power graphite electrode is the development trend of electrode industry in the future.

Graphite electrode supply is very inelastic, and mostly low quality products. In terms of the global market, the main suppliers of ultra-high power electrodes are overseas enterprises. Due to the impact of the COVID-19 pandemic, the global annual output was only 1.205 million tons in 2020, down 22.16% year on year, and 90% of the high-quality ultra-high power graphite electrodes came from overseas enterprises.

The global market share of graphite electrodes is only 10%.

The graphite electrode industry is difficult to achieve a breakthrough. In the future, China is the world's largest producer of ultra-high power graphite electrodes, but the main products are mainly low-end. At high power as well as ultra-high power capacity is severely limited. Few young people join the graphite electrode industry, and it has been in the doldrums for a long time, making many of the original technical talents lose to other industries. And high-end graphite electrode process for equipment and technology requirements are extremely high, its production process and equipment largely determine its performance, and for high-end production equipment or need to rely on a large number of imports to achieve large-scale production.

Graphite electrode belongs to high energy consumption industry, the state strictly controls the construction and output of graphite electrode enterprises. On February 25, 2021, the Inner Mongolia Development and Reform Commission proposed to no longer approve the new production capacity projects of graphite electrodes under ultra-high power. Policy control and environmental control make it very difficult for new enterprises to enter the graphite electrode industry.