News

2.2 Production Status of Graphite Electrodes

Graphite electrode is a necessary consumable for electric arc furnace steelmaking. Figure 4 shows the production capacity and output of graphite electrode in China in the past five years. The production capacity of graphite electrode has increased from 1050kt/a in 2016 to 2200kt/a in 2020, with a compound annual growth rate. was 15.94%. These five years are a period of rapid growth of graphite electrode production capacity, and also a period of rapid development of the graphite electrode industry bottoming out. Before 2017, the graphite electrode industry was a traditional high-energy-consumption and high-polluting manufacturing industry. Large domestic graphite electrode companies reduced production, small and medium-sized graphite electrode companies faced bankruptcy, and even international electrode giants had to stop production, resell, and withdraw. In 2017, the price of graphite electrodes in China rose sharply due to the government’s compulsory elimination of “strip steel” policy. Stimulated by excess profits, the graphite electrode market ushered in a wave of capacity resumption and expansion.

In 2019, the output of graphite electrodes in my country reached a new high in recent years, reaching 1189kt. Affected by the epidemic, the demand has weakened, and the output of graphite electrodes in 2020 will be reduced to 1020kt. But overall, my country’s graphite electrode industry has serious overcapacity, and the utilization rate has dropped from 70% in 2017 to 46% in 2020, setting a new low in capacity utilization.

2.3 Demand analysis of needle coke in graphite electrode industry

The development of electric furnace steel will drive the demand for ultra-high-power graphite electrodes. It is estimated that the demand for graphite electrodes will be about 1300kt in 2025, and the demand for raw needle coke will be about 450kt. Since oil-based needle coke is superior to coal-based needle coke in the production of large-scale ultra-high-power graphite electrodes and joints, the demand for oil-based needle coke for graphite electrodes will further increase, squeezing coal-based needle coke market space.