UHP graphite electrode market prospect in China in 2023

1. Strict environmental regulations and policies

In recent years, the Chinese government has promulgated a series of regulations and policies to accelerate graphite electrode manufacturers' technological innovation, aiming at promoting industrial integration and eliminating backward production capacity. For example, the Action Plan for the Comprehensive Control of Air Pollution in the Beijing-Tianjin-Hebei Region and its surrounding Areas for Autumn and Winter 2019-2020, issued in October 2019, stipulates that carbon manufacturers that cannot meet the special emission limit need to stop production. Affected by this policy, Chinese graphite electrode manufacturers that fail to meet the environmental protection requirements must close their production facilities, which is conducive to leading graphite electrode manufacturers with environmental protection production technology and the ability to produce high-quality graphite electrodes, helping them to further increase market share and enhance market competitiveness.

2. Industrial economy promotes stable development of the industry

From 2016 to 2021, China's industrial added value (i.e. the total market value of new products and services in the production process of industrial enterprises) increased from about 24.5 trillion yuan to 34.3 trillion yuan, with a compound annual growth rate of 7.0%, reflecting the sound momentum of China's industrial development. China's industrial development has promoted the steady development of UHP graphite electrode downstream application, such as EAF steelmaking market, industrial silicon market and yellow phosphorus market. Therefore, stable industrial development is one of the main driving forces of China's UHP graphite electrode market.

3. Steel industry demand growth

The main downstream application of graphite electrode is EAF steelmaking, so graphite electrode market is affected by steel industry development. In recent years, the Chinese government has issued a series of policies to reduce excess steel capacity, such as the Opinions on Reducing Excess Capacity in the Steel Industry to Achieve the Development of the Economy. It issued in 2016 aims to use EAF steelmaking to replace the backward crude steel capacity (such as using blast furnace steelmaking of 400m³ and below), promoting China's EAF steel manufacturing industry development. As graphite electrode is a necessary consumable for EAF steelmaking, the development of China's EAF steel manufacturing industry stimulates the demand for graphite electrode. Welcome to further discuss the market news of artificial graphite electrode with us.