In a presentation at AMM and WSD’s annual Steel Success Strategies conference in New York this week, Prof. Dr. Mark Shujun Ma Ph.D, Chairman and CEO of Ark of China, explained why graphite electrode prices are expected to maintain at high levels in the near future.
EAF steelmaking is replacing BOF steelmaking in China, due to limited iron ore resources and increased steel scrap recycling, as well as the overall cost-effectiveness of EAFs. However, Dr. Ma said there is “no substitute for graphite electrode” to be used in EAF steelmaking, which means demand for graphite electrodes will continue to increase “in large scale.”
Pricing for graphite electrodes spiked in 2017 after production was reduced for environmental reasons in the main regions of China that produce the material. Aside from insufficient production capacity, problems in China’s graphite electrode industry include certain antidumping orders against the product from export destinations, and the lack of a centralized exchange platform for raw material supplies and product sales.
Dr. Ma said there are solutions to these problems, including investment to construct more production facilities, investing in production facilities in Europe, and creating a platform for raw material procurement and sales.