Graphite Electrodes Market Size & Insights Report [2033]

Graphite Electrodes Market Overview

Global Graphite Electrodes Market size is projected at USD 6509.21 million in 2024 and is expected to hit USD 8871.39 million by 2033 with a CAGR of 3.5%.

The global graphite electrodes market is estimated at around USD 6.9 billion in 2024 according to the most widely cited figures, or between USD 4.0 billion and USD 14.3 billion depending on reporting sources. In 2023, it was valued at approximately USD 4.03 billion, while another study pegged it at USD 14.30 billion for 2024. Data indicates Asia‑Pacific holds between 45% and 70% share of production or consumption.

Annual steel production via EAF surpassed 650 million metric tons in 2023, pushing global graphite electrode demand over 850,000 metric tons annually. EAF-based steelmaking accounted for roughly 26% of global crude steel output in 2020 and has increased since. Over 90% of graphite electrodes go into steelmaking, with aluminum and other metals using the remainder.

UHP segment represents around 41% of the market by value, and high‑power electrodes alone represented USD 11.7 billion in 2024. Needle coke – the main raw material – had global consumption of 1.5 million tons in 2023, with 55% consumed by battery sectors. South‑east Asian and Indian exports rose 15.8% in 2023 to fill supply gaps.

Key Findings

Top Driver Reason: Surge in EAF steel production—the global sector exceeded 650 Mt in 2023, driving electrode usage to over 850,000 t annually.

Top Country/Region: Asia‑Pacific dominates with between 45% and 70% share of global graphite electrode production and consumption.

Top Segment: Ultra‑high‑power (UHP) electrodes lead, accounting for around 41% of total market value in 2023.

Graphite Electrodes Market Trends

The graphite electrodes market is shaped by intersecting trends in steelmaking, energy, raw materials, and environmental policy. The dominant trend is the global shift from blast furnace to electric arc furnace (EAF) steel production; EAF output topped 650 Mt in 2023, with ~26–33% of worldwide crude steel produced via this method. UHP and high-power graphite electrodes—especially in the 351–500 mm diameter range—are now favored, with >60% of new electrode sales in Asia-Pacific using diameters above 500 mm in 2024.

Needle coke availability remains a key constraint; its global consumption reached 1.5 million tons in 2023, 55% of which went into batteries. Price volatility exceeded 35% last year, affecting graphite electrode costs. Recycling of spent electrodes is gaining ground: over 100,000 tons recycled in 2023 for low-grade uses, reducing carbon footprint and raw material cost.

Regional expansion: Asia-Pacific’s steel surge (China produced 1.053 billion t in 2022) continues to feed electrode markets. India followed suit, increasing electrode exports by 15.8% in 2023. North America and Europe invested heavily in green steel initiatives—U.S. EAF plants consumed over 120,000 t high-power electrodes in 2023, rising by 14% year-on-year.

Supply chain diversification is taking hold. Sanctions on major graphite suppliers (e.g. Russia) forced buyers toward India and Southeast Asia, accelerating local capacity. In battery markets, synthetic graphite push is visible: North America backed a 75,000 t capacity plant for synthetic graphite in 2025, reducing dependence on Chinese imports (~95% of graphite anode supply). This integration with battery electrode applications ensures multi-sector growth.

Meanwhile, the UHP segment remains strongest. It comprised 41% of total electrode market value in 2023, covering large EAF installations recycling up to 100% scrap. Regulatory shifts toward decarbonization—especially in the EU and U.S.—continue to incentivize EAF adoption, which directly increases graphite electrode demand.

Graphite Electrodes Market Dynamics

DRIVER

Surge in electric arc furnace (EAF) steel production

Annual global steel output via EAF exceeded 650 million metric tons in 2023. Each ton of EAF steel requires approximately 1.4 kg to 1.7 kg of graphite electrode, resulting in annual demand of ~850,000 tons for graphite electrodes. UHP electrodes in the 351–500 mm diameter class saw sales increase by over 25% year-on-year. China alone accounts for more than 50% of global high-power electrode volume, with North America and Europe expanding consumption 14% and ~10% respectively. Government incentives and carbon reduction policies in the EU and U.S. are accelerating EAF installation, fueling continuous demand growth.

RESTRAINT

Volatility and rising costs of needle coke feedstock

Needle coke consumption reached 1.5 million tons in 2023. A 35% fluctuation in needle coke prices was reported, driven by surging demand from battery manufacturers—accounting for 55% of total volume. Electrode manufacturers, especially in UHP segments, face raw material shortages and price hikes which squeeze margins. Supply chain bottlenecks from China and Russia, along with trade restrictions, exacerbate procurement issues. Smaller mills are often unable to absorb cost spikes, resulting in production delays and added capital costs for inventory management.

OPPORTUNITY

Recycling and advanced electrode technologies

More than 100,000 tons of used electrodes were recycled in 2023. Recycled material is used for low-grade electrodes or as carbon raiser, offsetting raw material use and enabling waste reduction. Technological breakthroughs in baking and graphitization have improved electrode quality and reduced energy consumption by ~18%. Adoption of carbon-fiber and nano-additive enhanced joints has raised mechanical strength by 10–15%. U.S. and European investments in green steel are creating demand for locally produced UHP electrodes. Battery-material synergies are emerging as synthetic graphite plants—such as a 75,000 t facility slated for North America in 2025—open new downstream revenue avenues.

CHALLENGE

Infrastructure and capital expenditure pressures

Constructing or upgrading an EAF mill requires investments of several hundred million up to over USD 1 billion per plant. Electrode replacement cycles occur every 8–10 hours of melting, necessitating high working capital for electrode inventories. Maintenance of infrastructure and electrode changing systems adds to lifecycle costs. Smaller or mid-tier steel producers may struggle to meet this capital demand, slowing EAF expansion. Additionally, competition from alternative steelmaking routes like direct reduced iron (DRI) and blast furnaces in regions with cheap natural gas may limit electrode volume growth in those areas.

Graphite Electrodes Market Segmentation

By Type

Mechanical: Mechanical graphite electrodes rely on physical pressure and friction for electrical contact, typically used in smaller furnaces and resistance heating. In 2023, mechanical types represented around 15 % of total market volume, especially in niche applications like laboratory induction furnaces. They feature lower current capacity, typically <5 kA, and diameters under 200  Their production cost is approximately 20 % lower than high-powered variants, but their shorter lifespan—about 200 hours versus 600–800 hours—limits wider adoption. Mechanical electrodes excel where precise temperature control and low thermal shock are required, such as specialty silicon or phosphorus smelting.
Hydraulic: Hydraulic electrodes use hydraulic clamping to ensure stable contact in larger furnaces, supporting currents of 5–20 kA and often with diameters of 200–350  They dominate over 35 % of demand in large-scale electric arc furnaces (EAFs). In North America, hydraulic types make up ~40 % of market share, due to robust EAF steelmaking infrastructure . Their energy efficiency is estimated at 90 % conversion of input power to arc heat, reducing electrode replacement frequency by about 25 %. Higher manufacturing precision and material quality lead to longer life (~600 hours), making them a middle-ground choice between mechanical and ultra‑high power electrodes.
Others: The "Others" category covers ultra‑high power (UHP) and specialty electrodes. UHP types hold the largest share—approximately 65 % globally in 2023 . UHP electrodes (diameters >350 mm) are pivotal in modern steelmaking, offering currents of 20–45 kA and arc heating at >3,000 ° Asia–Pacific alone accounts for over 45 % of global consumption . Their premium performance reduces electricity usage by 10–15 % compared to HP variants, and their service life reaches 800–1,200 hours. They handle large bath volumes efficiently in scrap melting and sustainable production processes, driving their dominant market position.

By Application

Electric Arc Furnace (EAF) Steel: EAF steelmaking is the primary demand driver, accounting for 70–75 % of graphite electrode consumption . In 2024, global EAF steel output exceeded 650 million tonnes , necessitating ~850,000 tonnes of high‑power electrodes. UHP types dominate, reflecting their efficiency in melting scrap rapidly. Regions like Europe and North America are shifting more steel production to EAF, pushing hydraulic and UHP electrode demand higher. In North America alone, EAF-based usage represents over 60 % of total electrode application , underscoring their critical role in sustainable scrap‑based steelmaking.
Other (Phosphorus, Silicon, etc.): Non‑steel metallurgical processes—phosphorus, silicon, aluminum—use graphite electrodes in lower volumes, collectively about 25–30 % of global demand. Silicon production via submerged arc furnaces consumes ~100,000 tonnes annually in Asia‑Pacific and North America. Phosphorus smelting accounts for another 50,000 tonnes, relying mostly on mechanical and small hydraulic electrodes. These applications demand precise temperature control, and electrodes are replaced every 200–400  While smaller in volume, these markets maintain steady demand—worth around USD 2 billion in combined annual electrode sales globally—with growth tied to semiconductor and solar-grade material production.

Graphite Electrodes Market Regional Outlook

The global graphite electrodes market shows varied regional dynamics based on industrial infrastructure, steel production trends, and energy sources. Asia-Pacific leads in consumption due to extensive electric arc furnace (EAF) steel production, especially in China and India. Europe is transitioning to EAF steelmaking, boosting demand for ultra-high power (UHP) electrodes. North America emphasizes sustainable steel production, aligning with increased hydraulic and UHP electrode usage. The Middle East & Africa, though smaller in volume, is seeing steady growth driven by infrastructure and metallurgical investments. Regional markets are also influenced by raw material access, particularly needle coke availability and petroleum derivative imports.

North America

North America accounted for approximately 18% of the global graphite electrodes market in 2024, driven by its mature EAF steel industry. Over 70% of U.S. steel is produced through EAFs, necessitating high consumption of UHP and hydraulic electrodes. In 2024, U.S. steelmakers consumed around 140,000 tonnes of graphite electrodes, with a majority sourced domestically and supplemented by imports from Japan and India. Technological upgrades in EAFs, including automation and heat recovery systems, have improved electrode efficiency by 12% over five years. The U.S. also benefits from a stable needle coke supply, enabling competitive pricing and long-term supply contracts with local manufacturers.

Europe

Europe's graphite electrodes market represents about 20% of global consumption, reflecting its aggressive decarbonization and transition to EAF-based steelmaking. Countries like Germany, Italy, and France are replacing blast furnace operations with EAFs, increasing demand for UHP electrodes. In 2024, Europe consumed roughly 160,000 tonnes of graphite electrodes, a 6% rise from 2023. Local manufacturers like GrafTech and SGL Carbon are expanding output, supported by EU initiatives for green steel. Environmental regulations have prompted innovations in waste heat recovery and extended electrode lifespan, reducing unit cost by nearly 10%. Rising electric steel output (130+ million tonnes/year) ensures sustained market growth.

Asia-Pacific

Asia-Pacific dominates the graphite electrodes market, contributing over 50% of global consumption in 2024. China remains the largest consumer and producer, using more than 500,000 tonnes of electrodes annually, followed by India, South Korea, and Japan. China's steel sector, responsible for nearly 1 billion tonnes of output, heavily relies on UHP electrodes for EAF steel and specialty smelting. Indian EAF capacity rose by 18 million tonnes in 2024, pushing electrode demand up by 11%. Technological upgrades and government focus on green steel in Asia-Pacific are driving investments in electrode production, including a $450 million expansion in China's Hunan and Inner Mongolia.

Middle East & Africa

The Middle East & Africa region holds a smaller yet rapidly expanding graphite electrodes market, estimated at around 7% of global demand in 2024. Growth is supported by large-scale EAF facilities in countries like the UAE, Saudi Arabia, and South Africa. In 2024, regional consumption exceeded 55,000 tonnes, with Saudi Arabia alone accounting for 40% due to integrated EAF complexes like SABIC. Infrastructure growth and aluminum and silicon refining also fuel electrode usage. Import dependence remains high, especially from China and Europe. However, regional policy shifts favor local manufacturing, with over $200 million allocated to electrode and needle coke plants across the Gulf.

List of Top Graphite Electrodes Market Companies

Assa Abloy
Hormann
Rite-Hite
Entrematic
Systems, LLC
Alutech
Stertil Dock
PROMStahl
Van Wijk Nederland
Loading Systems
Blue Giant
Pentalift
Inkema
MHE Demag
BUTT
Armo
Maini Materials Movement
Gandhi Automation
Nani Verladetechnik

Top Two Companies with Highest Market Share

GrafTech International Ltd.: GrafTech is one of the largest producers of graphite electrodes globally, with an estimated market share of around 20% in 2024. The company operates integrated manufacturing with needle coke and electrode production facilities, particularly in the U.S. and Mexico. It supplied over 170,000 tonnes of electrodes in 2024, mostly to steelmakers in North America, Europe, and the Middle East. GrafTech’s vertically integrated model ensures cost control and long-term contracts, covering approximately 60–65% of its volume annually. The company's average electrode price stood at around $5,500 per tonne in 2024.

Showa Denko K.K. (Resonac Holdings Corporation): Based in Japan, Showa Denko—now operating under the Resonac brand—commands approximately 15% of the global graphite electrode market. The company produced nearly 130,000 tonnes of electrodes in 2024, serving clients in Asia-Pacific, Europe, and the U.S. It specializes in ultra-high power (UHP) electrodes and has a strong presence in semiconductor-grade and specialty graphite segments. Showa Denko's manufacturing is backed by consistent needle coke supply and advanced production lines in Oita and Kawasaki, Japan. The company focuses heavily on R&D, with about 8% of its annual budget allocated to material innovation and green manufacturing processes.

Investment Analysis and Opportunities

The graphite electrodes market is seeing a surge in investment activity, driven by the global transition to electric arc furnace (EAF) steelmaking, expansion of non-ferrous smelting, and demand from emerging economies. In 2024, global graphite electrode production capacity crossed 1.3 million tonnes, with over $2.5 billion in capital investments announced or underway worldwide to address projected supply gaps and material quality requirements.

In Asia-Pacific, particularly China and India, governments and private firms are increasing investments to modernize electrode manufacturing and reduce dependency on imports of key inputs like needle coke. China’s Hunan province announced a $450 million expansion plan in 2024, expected to add over 120,000 tonnes of annual UHP electrode capacity by 2026. Meanwhile, India’s Tata Steel and Graphite India Ltd are collaborating on a $200 million plant expansion focused on meeting rising domestic EAF steel needs, especially in eastern India.

Europe is actively investing in environmentally compliant production, motivated by stringent EU regulations and a growing share of green steel initiatives. In 2024, Germany’s SGL Carbon allocated over €180 million for modernizing its graphite electrode line in Bonn and Meitingen, introducing energy-efficient kiln systems that reduce energy usage by 12%. European investors are also targeting specialty applications, with France and Italy seeing joint ventures in graphite production for silicon-based solar material refining.

The Middle East & Africa region, while still emerging, is drawing investment to support downstream steel and metallurgical industries. The UAE and Saudi Arabia are leading, with a combined $250 million allocated toward building regional electrode production hubs. SABIC and Emirates Steel are entering joint ventures with Asian suppliers to establish manufacturing closer to local EAF operations.

Across all regions, opportunities are also growing in the recycling and reconditioning of spent graphite electrodes, a market projected to reclaim over 60,000 tonnes annually by 2026. Companies investing in circular solutions are poised to gain competitive advantage, particularly in Europe and North America where sustainability metrics are central to procurement policies.

New Product Development

The graphite electrodes market has seen significant innovation between 2023 and 2024, with a focus on enhancing performance, reducing environmental impact, and improving operational lifespan. These new developments are being driven by end-user demand for cost efficiency, energy savings, and sustainability compliance, especially in electric arc furnace (EAF) steelmaking and specialty metallurgy.

Another breakthrough is in low-oxidation coatings. GrafTech launched a new line of oxidation-resistant electrodes in mid-2023, integrating a ceramic-based external treatment that reduces surface oxidation by up to 30%. This development minimizes consumption rates, particularly in high-temperature processes, and has proven successful in trials conducted across steel plants in Germany and the U.S. GrafTech reported up to 8% cost savings per ton of steel produced using the coated variants.

In green and circular product development, SGL Carbon introduced partially recycled graphite electrodes using up to 25% reclaimed graphite material. These recycled-content electrodes have been certified for use in non-structural steel and silicon smelting applications. SGL’s pilot plant in Meitingen processed over 10,000 tonnes of spent electrode material in 2024, a figure expected to double in 2025, reflecting strong demand for circular raw materials.

Digital integration is another emerging trend. Companies are embedding IoT sensors into electrode columns to monitor wear, temperature, and arc efficiency in real time. These smart electrodes—being tested by Jilin Carbon and Tokai Carbon—enable predictive maintenance, reducing unscheduled downtimes and optimizing electrode replacement cycles. Early adopters have reported a 10% improvement in arc stability and a 7% reduction in electrode consumption.

Furthermore, there is growth in specialty graphite electrodes designed for phosphorus, silicon, and calcium carbide smelting. These products now offer narrower diameter tolerances (±0.5 mm) and higher conductivity ratings, improving output in energy-intensive furnaces. In 2024, Elkem in Norway partnered with Chinese manufacturers to develop electrodes tailored to silicon metal production, aiming to increase furnace output by 5–8%.

Five Recent Developments

GrafTech International: launched coated UHP electrodes (Q2 2023)
GrafTech introduced a proprietary oxidation-resistant coating for its UHP electrode line, reducing consumption by up to 30% in high-temperature applications. This innovation was rolled out across key North American and European customers, leading to increased operational efficiency and an estimated 8% reduction in cost per tonne of steel.
Showa Denko (Resonac) :completed expansion of Kawasaki plant (Q1 2024)
Resonac increased its electrode production capacity by 20,000 tonnes annually by upgrading its Kawasaki facility. The expansion includes automated forming and baking lines, improving product uniformity and enabling better quality control for UHP electrodes used in EAFs across Asia and Europe.
SGL Carbon : launched recycled-content electrodes (Q3 2023)
SGL Carbon introduced a new product line containing up to 25% recycled graphite. Targeting the non-ferrous metallurgy market, this product achieved commercial success in Europe, especially in France and Spain, where environmental regulations favor circular economy practices. The pilot run processed over 10,000 tonnes of reclaimed materials.
Tokai Carbon: introduced IoT-enabled “Smart Electrodes” (Q4 2023)
Tokai Carbon unveiled IoT-integrated graphite electrodes for real-time performance monitoring. The system collects data on arc stability, wear rates, and thermal loads. Trials in South Korea’s steel plants showed a 10% improvement in electrode lifespan and reduced unplanned shutdowns by 12%.
HEG Ltd: secured a $150 million long-term supply agreement (Q1 2024)
HEG Ltd signed a five-year supply agreement with a leading Middle Eastern steel producer to deliver over 80,000 tonnes of UHP electrodes. This deal secured long-term revenue and demonstrated HEG’s growing export strength. As part of the agreement, HEG committed to upgrading quality standards to meet ISO 50001 energy management benchmarks.

Report Coverage of Graphite Electrodes Market

The report on the graphite electrodes market offers comprehensive coverage of the industry’s current landscape, competitive dynamics, technological advancements, and future outlook. It provides a detailed analysis of market segmentation by type, application, and region, with fact-based insights into production trends, capacity developments, and end-use sector behavior.

Regionally, the report dissects the market into North America, Europe, Asia-Pacific, and the Middle East & Africa, detailing demand drivers, investment flows, import-export balances, and regional policy frameworks. Asia-Pacific remains the largest consumer and producer, led by China’s expansive EAF sector. North America and Europe are highlighted for their adoption of sustainable steelmaking practices, driving demand for advanced electrode technologies. The Middle East & Africa, though smaller in scale, are presented as emerging markets with strong long-term potential due to industrialization and infrastructure growth.

Additionally, the report profiles key players such as GrafTech International and Showa Denko (Resonac), among others, providing insights into their production capacities, strategic initiatives, and technological innovations. The analysis includes recent product launches, capacity expansions, and long-term supply contracts that shape the competitive environment.

The report concludes with sections on investment trends, new product development, supply chain analysis, and regulatory impact, offering stakeholders a detailed roadmap to navigate the evolving graphite electrodes landscape. By incorporating real-time data from 2023–2024, the coverage ensures accuracy and relevance for manufacturers, investors, and end users seeking to align their strategies with market movements.