【Graphite Electrode】How to Break Through in 2024?

【Graphite Electrode】How to Break Through in 2024?

Review of Graphite Electrode Market in 2023

In 2023, the graphite electrode market faced a situation of weak supply and demand, as the decrease in operating rates of short-process steelmaking plants led to weakened demand for graphite electrodes. Consequently, graphite electrode prices showed an overall trend of fluctuating decline, resulting in industry-wide losses.

In the first half of the year, with increasing losses and production restrictions in short-process steel plants, the overall sales of graphite electrodes were sluggish. Internal competition for orders intensified, leading to low-price competition for resources. Small and medium-sized graphite electrode manufacturers suffered exacerbated losses and faced restructuring or shutdown. 

Market Supply - "Production Control and Reduction" Throughout the Year

In 2023, amid continuous weakening demand in the overall market, "production control and reduction" became the norm for graphite electrode manufacturers. The capacity utilization rate of the graphite electrode industry witnessed a significant decline. According to statistics, the capacity utilization rate of graphite electrode production in China was 43.5% in 2023, with a total output of 872,500 tons, a year-on-year decrease of 12.75%. In 2023, the output of leading graphite electrode enterprises remained stable, while more significant decreases in output were seen among some small and medium-sized manufacturers or those with incomplete processes. Although China's graphite electrode industry saw a significant decline in output in 2023, industry concentration continued to increase.

How to Break Through?

Continued low-price competition in the graphite electrode market is unlikely to produce true winners. While low prices are advantageous, they should not be the only way forward. In the intensely competitive domestic market, companies should seek new breakthrough directions, such as improving product quality, developing large-sized electrodes, or focusing on overseas markets. By avoiding fierce competition within the same dimension, companies can adapt to the reshuffle and seize opportunities to outperform their competitors. Only by making preparations in advance can companies thrive amidst the changing landscape. More Analysis on Graphite Electrode Market Trends - Follow Us for Updates.