The Current Situation and Future Outlook of China Graphite Electrode Market

The domestic graphite electrode market has experienced a slight price decline this week. With challenging downstream demand and consistently high upstream raw material costs, graphite electrode manufacturers are facing a difficult situation. Recent downstream market bidding activities have been limited, with prices generally remaining low, causing manufacturers to reduce shipments under loss-making pressure and maintain a wait-and-see approach.

On the supply side, graphite electrode manufacturers maintain normal production levels, operating steadily with order-based production to avoid inventory accumulation. However, affected by low-price resources in the market, manufacturers’ willingness to ship has decreased, focusing mainly on long-term orders. Regarding demand, steel mill profits have improved due to macroeconomic policy stimulus, with some high-end electric furnace enterprises resuming production. Terminal independent electric arc furnace operating rates have slightly increased, and while steel mills maintain extremely low inventory levels, they continue to purchase graphite electrodes on an as-needed basis. In the short term, the graphite electrode market is expected to remain stable.

Upstream raw materials such as needle coke and petroleum coke are expected to see slight price increases in the coming period, affecting production costs for graphite electrode manufacturers. Long-term market outlook suggests stability, though significant price adjustments remain challenging. Post-holiday production resumption may provide a slight boost to market transactions.

While the graphite electrode market faces immediate challenges, several factors point toward potential improvement in the medium to long term. The industry’s fundamentals remain strong, supported by the global push toward electric arc furnace steelmaking and environmental regulations. Manufacturers and buyers should maintain flexible strategies while monitoring key market indicators, including raw material prices, steel industry demand, and policy developments. Success in this market will require careful balance between cost management and maintaining quality standards to meet evolving industry needs.

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Morkin Carbon was founded in 2002 in China with full experiences in producing graphite electrode which is used in the industries of steel. We not only have the entire processes of production and processing equipment, but also have a 7,000 square meters warehouse for stock graphite electrode from 75 mm to 1200 mm in diameter. The annual production capacity of graphite electrode is 50,000 tons. Welcome to visit us! 

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