Graphite Electrode Market Analysis | 2026-2035

Market Size & Opportunities

Global Demand Analysis & Sales Opportunities in Graphite Electrode Market

• The annual demand for graphite electrodes was USD 11.8 billion in 2025 and is expected to reach USD 12 billion in 2026, up 1.6% than the value in 2025.

• During the forecast period (2026-2035), the market is expected to grow at a CAGR of 2.1%. The annual demand will reach USD 14.5 billion in 2035, which is almost 1.2 times the demand in 2026.

• Asia-Pacific had a market share of >70% in 2025, generating the largest demand across regions.

• Steel-based electrode consumption will continue to dominate in the coming years.

• Among the products, ultra-high power (UHP) electrodes are estimated to generate the highest demand, capturing the largest market share throughout the forecast period.

• By steel grade, carbon steel is anticipated to remain dominant, whereas alloy steel and tool steel will be the fastest-growing over the years.

“According to Research Associate at Stratview Research, the global graphite electrode market will generate a cumulative sales opportunity worth USD 133.6 billion during 2026-2035. During the next ten years, UHP electrodes, Steel & Silicon Metal applications, & Asia-Pacific are some of the high-opportunity segments to bank upon.”
 

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Market Statistics

Have a look at the sales opportunities presented by the Graphite Electrode market in terms of growth and market forecast.

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Market Dynamics

Graphite electrodes are seeing structurally driven demand as steelmakers shift from coal-based blast furnaces to cleaner, scrap-based electric arc furnaces (EAFs). As the conductive core of the EAF process, carrying massive currents at over 3,000°C to melt recycled steel, they are indispensable to modern steelmaking. Demand spans steel, silicon metal, and aluminium production, propelled by rising steel consumption and a decisive move toward sustainable, lower-emission manufacturing. 

Market Drivers

Growth in Global Steel Scrap Generation

The increasing availability of recyclable steel scrap is creating favorable conditions for graphite electrode market growth. As steel producers continue to expand electric arc furnace (EAF) operations to improve sustainability and reduce dependence on iron ore-based production, the use of recycled scrap as a primary feedstock is rising. This trend is strengthening demand for graphite electrodes, which are essential for generating the high temperatures required in EAF steelmaking.

• According to the Bureau of International Recycling (BIR), recycled steel consumption in key steel-producing markets increased by 4.5% year-over-year to 480 million tonnes in 2025, reflecting the growing availability of steel scrap for steelmaking applications. This trend is supporting graphite electrode demand through increased EAF steel production.

• According to the World Steel Association, approximately 630 million tonnes of recycled steel are used annually in global steelmaking. The increasing use of scrap-based steel production is supporting demand for graphite electrodes used in electric arc furnaces.

Transition from Blast Furnaces to Electric Arc Furnaces

The steel industry is increasingly shifting from blast furnace-basic oxygen furnace (BF-BOF) production toward electric arc furnace (EAF) technology to reduce emissions and improve resource efficiency. This transition is supporting graphite electrode market growth, as graphite electrodes are indispensable consumables in EAF-based steelmaking operations.

• Electric arc furnaces accounted for approximately 28% of global steel production and are projected to increase their share to 41% by 2030, reflecting the accelerating transition toward scrap-based steelmaking. As nearly 77% of graphite electrode demand is generated by EAF operations, expanding EAF capacity is expected to create substantial growth opportunities for electrode manufacturers.

• According to the International Energy Agency, blast furnace-basic oxygen furnace routes still account for approximately 70% of global steel production, while hydrogen DRI-EAF is emerging as a preferred low-emissions steelmaking pathway. The ongoing transition toward EAF-based production is expected to support long-term graphite electrode demand.

Decarbonization and Green Steel

The growing focus on decarbonization and green steel production is reshaping steel manufacturing worldwide. Increasing investments in electric arc furnaces (EAFs), hydrogen-based DRI facilities, and other low-carbon steelmaking technologies are supporting market demand for graphite electrodes, which remain critical consumables in EAF operations.

• According to the International Energy Agency (IEA), nearly 90 hydrogen-based iron and steel projects had been announced globally by 2025. These projects are expected to contribute more than 70 million tonnes of near-zero-emissions steel production capacity by 2030, supporting the adoption of EAF-based steelmaking and graphite electrode demand.

Growing Adoption of Hydrogen-Based DRI-EAF Steelmaking

Hydrogen-based DRI-EAF steelmaking is emerging as a key pathway for steel sector decarbonization, creating additional market demand for high-performance graphite electrodes. The expansion of larger and more efficient EAF facilities is expected to support the use of electrodes designed for higher power inputs and productivity levels.

• According to the International Energy Agency (IEA), nearly 90 hydrogen-based iron and steel projects had been announced globally by 2025. These projects are expected to contribute more than 70 million tonnes of near-zero-emissions steel production capacity by 2030, accelerating the deployment of DRI-EAF steelmaking facilities worldwide.

“As per our analyst, the global graphite electrode industry is evolving fast. While conducting the market analysis and speaking with the leading players, it is quite clear that the next decade will be defined by trends like the accelerating shift to EAF-based green steel, the rise of larger-diameter UHP electrodes, & growing needle-coke supply-chain security.”

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Market Challenges:

Volatility in Needle Coke Prices and Supply

Graphite electrode production is heavily dependent on needle coke, a critical raw material used in manufacturing ultra-high-power (UHP) electrodes. Fluctuations in needle coke availability and pricing, driven by changes in petroleum refining output, battery material demand, and supply chain disruptions, can significantly impact production costs and profit margins. This creates uncertainty for manufacturers and may affect the long-term stability of the graphite electrode market.

Cyclical Nature of the Steel Industry

Demand for graphite electrodes is closely tied to steel production, particularly electric arc furnace (EAF) steelmaking. As a result, fluctuations in steel demand, economic slowdowns, construction activity, and industrial production can directly influence graphite electrode consumption. Periodic downturns in the steel industry may lead to reduced electrode demand and capacity utilization rates across the graphite electrode value chain.

Market Opportunities

Growing Preference for Ultra-High-Power (UHP) Graphite Electrodes

The growing adoption of high-capacity electric arc furnaces (EAFs) and the modernization of steelmaking facilities are reinforcing the graphite electrode market trend toward ultra-high-power (UHP) electrodes. These electrodes offer superior electrical conductivity, higher current-carrying capacity, and improved operational efficiency, making them increasingly preferred for large-scale steel and specialty metal production.

• According to the World Steel Association, electric arc furnaces account for approximately 29% of global steel production. The continued expansion of EAF-based steelmaking is increasing the use of UHP graphite electrodes, which are preferred for high-current and high-productivity furnace operations.

• The International Energy Agency estimates that electric arc furnace-based steel production will play a growing role in steel sector decarbonization, with EAF capacity expected to expand significantly as countries pursue lower-emission steelmaking pathway.

Expansion of Electric Vehicle and Battery Manufacturing Activities

The rapid expansion of electric vehicle and battery manufacturing is creating new opportunities across the graphite value chain. As global investments in EV production, battery gigafactories, and supporting industrial infrastructure continue to increase, demand for graphite-based materials is expected to rise, supporting long-term growth opportunities for graphite producers and suppliers.

• According to the International Energy Agency (IEA), global electric car sales exceeded 20 million units in 2025, with electric vehicles accounting for approximately 25% of all new cars sold worldwide. The continued expansion of EV and battery manufacturing is expected to strengthen demand for graphite-based materials across the broader value chain.

Segment Analysis

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By Product Type

“UHP is expected to remain the most preferred as well as the fastest-growing product of the market during the forecast period.”

• The graphite electrode market is segmented into ultra-high power (UHP), high power (HP), and regular power (RP).

• UHP graphite electrodes are expected to remain the dominant and fastest-growing segment throughout the forecast period. Their superior electrical conductivity, higher thermal shock resistance, lower consumption rates, and ability to withstand extreme operating conditions make them indispensable for modern high-capacity electric arc furnaces (EAFs).

• The ongoing shift toward larger and more energy-efficient EAFs, coupled with the growing adoption of low-carbon steelmaking technologies, is further strengthening demand for UHP electrodes. Additionally, most leading manufacturers are focused on expanding their UHP product portfolios, reinforcing the segment’s leadership in the global graphite electrode market share.

By Metal Type

“Steel is expected to remain dominant, whereas aluminium and other metals are expected to be the fastest-growing metals of the market during the forecast period.”

• The market is segmented into steel, silicon metal, aluminium, and other metals. Steel is expected to remain the dominant segment owing to the extensive use of graphite electrodes in electric arc furnace (EAF) steelmaking. The market is benefiting from both rising steel production and the ongoing shift from conventional blast furnace routes to EAF technology.

• For instance, approximately 15% of China's steel production was generated through EAFs in 2025 (well below the global average of 45%). To accelerate low-carbon steelmaking, the Chinese government has set a target of increasing the share of EAF-based steel production to 22.2% by 2035.

• Meanwhile, aluminium, silicon metal, and other specialty metals are expected to witness faster growth, driven by increasing investments in lightweight materials, renewable energy technologies, electric vehicles, and advanced manufacturing applications.

By Area Type

“Side wall is expected to remain dominant, and the arc zone area will be the fastest-growing during the forecast period.”

• The graphite electrode market for steel applications is segmented into arc-zone, slag, side wall, and others. The side wall segment is expected to remain dominant, as oxidation occurring along the electrode side surface accounts for a significant portion of total graphite electrode consumption during EAF operations. Electrode wear in this area is strongly influenced by furnace atmosphere, oxygen concentration, gas temperature, and gas flow dynamics.

• Meanwhile, the arc-zone segment is anticipated to witness the fastest growth due to increasing adoption of high-power furnace operations, where electrodes are exposed to extreme temperatures and electrical loads. Continuous efforts by steelmakers to improve furnace productivity and energy efficiency are expected to further influence consumption patterns across these application areas.

By Steel Grade Type

“Carbon steel is expected to be the dominant and fastest-growing market over the years.”

• The market is segmented into carbon steel, stainless steel, and others. Carbon steel is expected to remain both the largest and fastest-growing segment, primarily due to its extensive use across construction, infrastructure, automotive, machinery, and industrial applications.

• Owing to its high production volume and cost-effectiveness, carbon steel accounts for the majority of EAF steel output and represents the largest share of graphite electrode consumption, accounting for more than 85% of total graphite electrode usage in EAF steelmaking.

• Meanwhile, stainless steel demand is expected to grow steadily, supported by increasing requirements for corrosion-resistant materials in medical equipment, food processing, chemical processing, and other high-performance industrial applications, driving growth in stainless-steel production over the forecast period.

By Regional Analysis

“Asia-Pacific is expected to remain the largest while Rest of the World will be the fastest-growing market for graphite electrodes during the forecast period.”

• Asia-Pacific is expected to remain the largest market for graphite electrodes throughout the forecast period, driven by its dominant position in global steel production and the presence of major graphite electrode manufacturers. China continues to lead global steel production and remains one of the largest adopters of EAF-based steelmaking, while India is witnessing rapid growth in steelmaking capacity and infrastructure development.

• The region also benefits from the presence of leading manufacturers such as Resonac Corporation, Fangda Carbon New Material Co. Ltd., Tokai Carbon Co. Ltd., Graphite India Limited, and HEG Ltd.. Meanwhile, the Rest of the World region is expected to register the fastest growth, supported by increasing investments in steel recycling, expanding EAF capacity, and growing adoption of low-carbon steelmaking technologies across emerging markets.

“Analysis suggests that the Top 10 countries generate >70% of the annual sales for the graphite electrode market. A few countries are the demand powerhouses and will drive the regional markets in big ways offering attractive business opportunities.”
 

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Competitive Landscape

The market is moderately fragmented with the presence of a handful of major global players alongside numerous regional producers. Some of the major players are vertically integrated, also manufacturing needle coke and other carbon & graphite products. Leading players hold excellent market positions with a vast product portfolio, a wide distribution network, and years of track record.

The following are the key players in Graphite Electrode market.

• GrafTech International Ltd.

• Resonac Corporation (Formerly Showa Denko Materials Co., Ltd.)

• Fangda Carbon New Material Co., Ltd.

• Tokai Carbon Co., Ltd

• Graphite India Limited

• HEG Limited

• Energoprom

• Nippon Carbon Co. Ltd

• Sangraf International

• SEC Carbon, Ltd.

Note: The above list is not an exhaustive list of the key players in the market. If your company is active in this market and would like to be considered for inclusion in future editions of this study, please contact us at [email protected].  

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Recent Mergers & Acquisitions

Recent mergers & acquisitions and other developments in the Graphite Electrode market reflect evolving market trends and impact the market. Below given are a few recent developments in the market –

• In February 2026, GrafTech International Ltd. reported graphite electrode sales volume of 109.2 thousand metric tonnes in 2025, representing a 6% year-over-year increase, supported by improving demand from electric arc furnace steelmaking markets.

• In March 2025, Tata Steel inaugurated its first scrap-based electric arc furnace (EAF) in Ludhiana, India, with an annual steelmaking capacity of 0.75 million tonnes, supporting long-term demand for graphite electrodes in the region.

• In 2025, ArcelorMittal continued construction of its EAF-based decarbonization projects across Europe as part of its broader strategy to reduce blast furnace dependence and increase low-emission steel production.

• In 2025, SSAB advanced multiple fossil-free steel initiatives based on hydrogen and electric steelmaking technologies, supporting the long-term expansion of EAF capacity and associated graphite electrode consumption.

• In February 2025, Nucor Corporation announced further investments in EAF-based steelmaking facilities in North America to enhance production efficiency and support growing steel demand from infrastructure and manufacturing sectors.

Report Scope

Market Definition

Graphite electrode (GE) is an essential component of steel production through the electric arc furnace (EAF) method. The penetration of EAF-based steel production is expected to be stable in the foreseeable future, because of the high awareness of the developed economies towards environmentally friendly technologies. The role of China and India in the production of EAF steel is going to be consequential in the coming years, as the current penetration of EAF steel production in both countries is lower than the developed countries, but will rise rapidly in the coming years. This will imprint a significant upward trend in the demand for graphite electrodes over the next decade.

Report Structure

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.

• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.

• Market trend and forecast analysis.

• Market segment trend and forecast.

• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.

• Attractive market segments and associated growth opportunities.

• Emerging trends.

• Strategic growth opportunities for the existing and new players.

• Key success factors.

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Segmentation

The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The graphite electrode market for the metal industry is segmented into the following categories. 

Graphite Electrode Market for the Metal Industry, by Product Type

• UHP

• HP

• RP

Graphite Electrode Market for the Metal Industry, by Metal Type

• Steel

• Silicon Metal

• Aluminium

• Other Metals

Sub-Segment of Steel-Area Type

• Arc-Zone

• Slag

• Side Walls

• Other Areas

Sub-Segment of Steel-Grade Type

• Carbon Steel

• Stainless Steel

• Other

Graphite Electrode Market for the Metal Industry, by Region

• North America (Trend and Forecast, Insights, Regional Breakdown, and Attractiveness: The USA, Canada, and Mexico)

• Europe (Trend and Forecast, Insights, Regional Breakdown, and Attractiveness: Germany, France, The UK, Russia, and The Rest of Europe)

• Asia-Pacific (Trend and Forecast, Insights, Regional Breakdown, and Attractiveness: Japan, China, India, and The Rest of Asia-Pacific)

• Rest of the World (Trend and Forecast, Insights, Regional Breakdown, and Attractiveness: Brazil, Saudi Arabia, and Others)

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Research Methodology

This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s graphite electrode market realities and future market possibilities for the forecast period.

The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)

• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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