The European Steel Association (EUROFER) has commented on the tight supply conditions for carbon graphite electrodes which are threatening to stall EU steel production, stating that graphite rods are indispensable in electric arc furnace (EAF) ‘secondary’ steelmaking and in the ladle furnace (LF) metallurgy stages of both the EAF and ‘primary’ blast furnace-basic oxygen furnace (BF-BOF) production routes.
According to Axel Eggert, director general of EUROFER, the global shortage of graphite electrodes has been caused by the idling of global production capacity over the past few years, followed by production stoppages recently enforced by the Chinese authorities as a result of additional environmental standards.
Mr Eggert stated that European steel production is dependent on imported graphite electrodes. Around 226,000 mt of electrodes are consumed every year in the EU. Of this, more than 60 percent of the smaller LF-type rods come from China, meaning that both primary and secondary steel production could be seriously affected by the ongoing shortage and supply volatility.
“Seamless supply of these electrodes has long been the norm for the sector. However this stability is now at risk, steel producers will need to be very cautious and take the necessary steps in order to prevent production disruptions caused by any prolonged shortage of electrodes,” concluded Mr Eggert.