Global Steel Industry Recovery Drives Surge in Graphite Electrode Demand — Industry Sees New Wave of Export Growth 

Release Date: July 2025 

As the global steel industry steadily recovers, graphite electrodes—key consumables for the electric arc furnace (EAF) steelmaking process—are experiencing strong market demand. According to multiple authoritative industry analysis agencies, global graphite electrode exports increased by more than 15% year-on-year in the first half of 2025, with China maintaining its position as the largest producer and exporter worldwide.

Low-Carbon Transition Accelerates Electric Arc Furnace Technology Expansion

The global "carbon neutrality" goals are driving profound transformation in the steel sector. As a leading low-carbon steelmaking technology, electric arc furnaces (EAFs) are favored for their low energy consumption and reduced emissions, becoming the preferred upgrade path for steelmakers. Especially in Turkey, India, and Southeast Asia, rapid growth in EAF capacity is fueling robust demand for graphite electrodes.

Ultra-high power (UHP) graphite electrodes, known for excellent conductivity and thermal shock resistance under high-temperature, high-load conditions, are critical for enhancing EAF stability and efficiency. Growing demand for green steel products in Europe and North America further boosts exports of Asian graphite electrode manufacturers. Several exporters report that order volumes in Q2 2025 have approached historic highs, reflecting a positive market outlook.

Product Technology Upgrades Drive Industry Structure Optimization

In recent years, the graphite electrode industry has undergone a wave of performance-driven technological upgrades. Compared with regular power (RP) and high power (HP) electrodes, UHP graphite electrodes offer superior electrical conductivity, lower resistivity, and outstanding thermal shock stability—especially suited for large-scale, high-power EAF operations that require more stringent performance.

Leading Chinese manufacturer Hebei Ruitong Carbon has launched 550mm and 600mm series UHP electrodes made from self-developed low-resistivity graphite materials, achieving over an 8% improvement in oxidation resistance and service life compared to international standards. These products have been widely adopted by domestic and overseas steel mills.

Raw Material Price Volatility Presents Dual Challenges for Enterprises

Graphite electrode production relies heavily on high-quality needle coke and petroleum coke feedstock. Since late 2024, raw material markets have been volatile, with needle coke prices soaring due to tight supply, becoming a major cost pressure for producers. Meanwhile, steel mills’ strong price pressure further compresses suppliers’ profit margins.

In response, some graphite electrode companies have adopted vertical integration strategies to stabilize their supply chains by controlling raw material procurement and production. Others are exploring price-indexed contracts to share or transfer raw material price risks, enhancing operational resilience.

Industry Outlook and Opportunities

Amid global steel green transformation trends and sustained market demand growth, the graphite electrode industry faces new development opportunities. Technology upgrades and supply chain management will be core competitive factors for enterprises.

Looking ahead, with further expansion of EAF capacity—especially accelerated construction in emerging markets—graphite electrode demand is expected to maintain rapid growth. Meanwhile, green manufacturing, intelligent production, and material innovation will drive the industry toward higher-quality development.

Leading companies like Hebei Ruitong Carbon, leveraging technological expertise and market presence, will continue to play an industry-leading role. They will support the global steel sector’s green, efficient, and sustainable development.