Graphite Electrode - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The graphite electrode market size is projected to expand from 1.72 million tons in 2025 and 1.78 million tons in 2026 to 2.13 million tons by 2031, registering a CAGR of 3.63% between 2026 to 2031. This report is Segmented by Electrode Grade (Ultra High Power (UHP), High Power (SHP), Regular Power (RP)), Application (Electric Arc Furnace, Basic Oxygen Furnace, Non-Steel), and Geography (Asia-Pacific, North America, Europe, South America, Middle-East and Africa). The Market Forecasts are Provided in Terms of Volume (Tons).

Global Graphite Electrode Market Trends and Insights

Rising Global Steel-Scrap Availability

In North America and Europe, the retirement of end-of-life vehicles, coupled with China's demolition of outdated infrastructure, is driving a surge in steel-scrap generation. The global ferrous scrap supply has increased significantly in recent years. However, the quality of scrap varies; obsolete scrap tends to have higher copper and tin contamination compared to prompt industrial scrap. As a result, Electric Arc Furnace (EAF) shops are increasingly mixing in direct-reduced iron (DRI) to achieve the desired automotive-grade chemistries. This practice not only extends melting times but also elevates amperage and increases electrode consumption per heat. Therefore, while the supply of scrap has risen annually, the intensity of electrode use has grown at a faster pace. Producers who can ensure a consistent current-carrying capacity stand to gain significantly from the ongoing scrap super-cycle.

Accelerating Demand for Ultra-High-Power Electrodes

UHP electrodes, with a bulk density greater than 1.68 g/cm³ and a resistivity less than 5.5 µΩ·m, are overtaking traditional high-power grades. Jiangsu Shagang launched a 6-million-ton EAF complex in 2024, exclusively utilizing 700-mm UHP columns to achieve significant tap weights. While UHP products are more expensive than their high-power counterparts, they offer an extended service life and reduced power consumption. This results in a decrease in total electrode costs per ton of steel, particularly when furnace utilization is high. Mid-tier producers, lacking access to premium needle coke, are witnessing a decline in market share. In response, several Chinese mills are shutting down high-power extrusion lines, reallocating funds to UHP machining centers. With an increasing number of furnaces transitioning to 150 MVA-plus transformers, the dominance of UHP in the graphite electrode market is expected to expand further.

Cyclicality of Global Steel Production

In early 2025, global crude steel production saw a year-on-year decline, prominently driven by a downturn in China. This fluctuation was intensified by the demand for electrodes, as operators of Electric Arc Furnaces (EAF) opted to postpone restocking when their utilization dipped below a specific threshold. From Q4 2024 to Q1 2025, GrafTech noted a sequential dip in its average selling price, a change linked to mills shifting from term contracts to spot purchases. Historical trends show that a downturn in EAF steel output often results in a marked drop in electrode shipments, mainly because mills prioritize depleting their existing inventory. Moreover, the recovery is not instantaneous; buyers cautiously rebuild their stocks, leading to longer lead times and diminished capacity-planning clarity for manufacturers. Given the ongoing instability in global steel demand, this adverse operating leverage is poised to persistently burden the graphite electrode market during the forecast period of 2026-2031.

Other drivers and restraints analyzed in the detailed report include:

• Hydrogen DRI-EAF Hybrids Requiring Larger-Diameter Electrodes
• Premium Low-CO₂-Footprint Electrode Traceability Mandates
• Emission-Quota Caps on Graphitization Capacity Expansion

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

UHP electrodes captured 70.11% of global volume in 2025, and their share of the graphite electrode market size is projected to rise further on a 4.12% CAGR to 2031. Operators of furnaces exceeding 150 MVA favor UHP columns due to their finer grain structures and reduced thermal-expansion coefficients, which minimize breakage incidents. Data from Jilin Carbon indicates that in 2025, UHP consumption was lower per ton of EAF steel compared to high-power grades, resulting in a notable lifetime-cost advantage. High-power electrodes have seen their market share decline, now primarily used for ladle-furnace refining or furnaces with smaller tap weights. In contrast, regular-power grades are predominantly utilized in yellow-phosphorus and calcium-carbide smelting, where cost considerations overshadow performance. Supply-side investments further bolster UHP adoption. In 2025, Liaoning Dantan invested significantly in a 700-mm UHP machining center, responding to UHP inquiries that constituted a large portion of its backlog. In India, similar shifts are evident, with HEG dedicating its new line's entire incremental capacity to 600-mm and 700-mm products. Producers reliant on legacy high-power tooling risk stranded assets unless they adapt extrusion presses for larger billets. With the rise of hydrogen-DRI hybrids, the demand for diameters exceeding 650 mm is expected to solidify UHP's dominance, potentially relegating the combined share of high-power and regular-power electrodes to a smaller portion of the graphite electrode market by 2031.

Complete Report Scope:

• By Electrode Grade
  • Ultra High Power (UHP)
  • High Power (SHP)
  • Regular Power (RP)
• By Application
  • Electric Arc Furnace
  • Basic Oxygen Furnace
  • Non-steel
• By Geography
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Thailand
    • Indonesia
    • Vietnam
    • Rest of Asia-Pacific
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • Germany
    • United Kingdom
    • Italy
    • France
    • Russia
    • Spain
    • Turkey
    • NORDIC Countries
    • Rest of Europe
  • South America
    • Brazil
    • Argentina
    • Colombia
    • Rest of South America
  • Middle-East and Africa
    • Saudi Arabia
    • Qatar
    • United Arab Emirates
    • Egypt
    • South Africa
    • Rest of Middle-East and Africa

Geography Analysis

Asia-Pacific accounted for 60.34% of global consumption in 2025 and is poised to expand at 4.74% annually through 2031, yet growth is uneven. In the first half of 2025, Chinese output experienced a notable contraction. This was largely due to provincial governments imposing operating-hour restrictions on graphitization furnaces. As a result, producers pivoted to exporting semi-finished blanks rather than their usual finished columns. Meanwhile, India capitalized on this gap. HEG, targeting buyers in the Middle-East and Southeast Asia who previously depended on Chinese supplies, is set to upgrade its capacity by 2027. In a strategic move, Japan's Tokai Carbon bolstered its presence in North America by acquiring two U.S. machining shops. This acquisition has notably reduced delivery lead times for clients. Additionally, Vietnam and Malaysia, taking advantage of reduced electricity tariffs, approved three finishing plants in 2025. These plants will process Chinese blanks, achieving lower landed costs, further diversifying regional trade dynamics.

In 2025, North America accounted for a notable portion of global demand and is on a growth trajectory. Nucor and Steel Dynamics announced new EAF capacity. This move is set to bolster electrode offtake, secured through multi-year contracts that benefit local machining hubs. GrafTech's Ohio facility, the sole integrated plant in the region, catered to most of its 2025 shipments domestically. This underscores the regional buyers' preference for resilient and traceable supply chains. In a strategic partnership, Canada’s Algoma Steel, which transitioned to EAF in 2024, signed a long-term deal to procure UHP columns from Tokai Carbon’s Pennsylvania facility. This ensures a steady supply of electrodes for Algoma's upcoming hydrogen-DRI trials. Meanwhile, Mexico stands out as a growth hotspot, with Ternium and ArcelorMittal boosting their EAF lines to cater to the auto-steel demand driven by USMCA.

Europe, accounting for a significant portion of global consumption in 2025, is witnessing steady growth, largely influenced by the Carbon Border Adjustment Mechanism (CBAM). Under CBAM, importers are mandated to present certificates corresponding to embedded carbon. This regulation imposes additional costs on shipments that lack the ISO 14067 carbon footprint certification. Capitalizing on its eco-friendly products, SGL Carbon, with a low carbon footprint, secured contracts at a premium over Asian competitors. Despite Turkey relying on imports for most of its electrodes, the rising CBAM costs are spurring domestic investments. A testament to this shift is the production line inaugurated by Karabük Demir Çelik in 2025. Meanwhile, Russia's market faces distortions due to sanctions limiting needle coke imports. While Chinese exports surged month-on-month in January 2025, ongoing logistical challenges have tempered this growth.

List of Companies Covered in this Report:

• El 6 LLC
• Fangda Carbon New Material Technology Co. Ltd
• GrafTech International
• Graphite India Limited
• HEG Limited
• Jilin Carbon New Material Co., Ltd.
• Kaifeng Pingmei New Carbon Materials Technology Co. Ltd
• Liaoning Dantan Technology Group Co. Ltd (Dan Carbon)
• Nantong Yangzi Carbon Co. Ltd
• Nippon Carbon Co. Ltd
• Resonac Holdings Corporation
• Sangraf International Inc.
• SEC Carbon Limited
• Tokai Carbon Co. Ltd
• Zhongze Group

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support