Driven by China’s “dual carbon” goals (carbon peaking and carbon neutrality), environmental policies have exerted a profound impact on the graphite electrode industry, primarily manifesting in four aspects: industrial upgrading, market structure adjustment, technological innovation, and enhanced international competitiveness. A detailed analysis is as follows:
1. Industrial Upgrading: Eliminating Outdated Capacity and Promoting Industry Centralization
Raising Environmental Thresholds
Policies have compelled enterprises to upgrade production technologies through measures such as strictly controlling unregulated mining and phasing out outdated capacity. For instance, small-scale enterprises with high energy consumption and pollution have been forced to shut down due to their inability to meet environmental standards, while leading companies with eco-friendly production processes and high-end product manufacturing capabilities (e.g., Fangda Carbon) have further expanded their market share. By 2025, industry concentration is projected to exceed 60%, fostering a scaled and intensive development model.
Accelerating Green Transition
Enterprises are required to establish a closed-loop system of “production-recovery-regeneration.” For example, graphite dust recovery rates are expected to reach 99.9%, and baking waste heat power generation technology will recycle 35% of energy consumption to comply with international environmental standards like the EU’s carbon border tax. Policies also leverage mechanisms such as environmental taxes and carbon emissions trading to drive a shift from “scale-speed” to “quality-efficiency” growth.
2. Market Structure Adjustment: Demand Upgrades and Supply Optimization
Surge in Electric Arc Furnace (EAF) Steelmaking Demand
EAF steelmaking, a short-flow process with carbon emissions just one-fourth of those from blast furnace steelmaking, is pivotal for achieving the steel industry’s “dual carbon” goals. Policies mandate increasing the share of EAF-produced steel from 10% to 15%-20% by 2025, directly boosting demand for graphite electrodes. Ultra-high-power graphite electrodes, which reduce energy consumption per ton of steel, have become the market mainstream, driving product structures toward higher power capabilities.
Expansion into Emerging Sectors
Graphite electrode applications have expanded beyond traditional metallurgy and chemical industries to high-end markets such as new energy (e.g., graphene batteries) and semiconductor manufacturing. For example, graphene technology significantly enhances electrode conductivity and mechanical properties, while 3D printing enables precise control of microstructures to meet complex application requirements.
3. Technological Innovation: Overcoming Bottlenecks and Enhancing Global Competitiveness
Localization of Critical Materials
High-end graphite electrodes rely on imported needle coke (with a domestic localization rate below 50%). Policy support for R&D has spurred technological breakthroughs, with enterprises increasing investments to improve the quality of domestically produced needle coke and achieve cost advantages, reducing reliance on imports.
Smart and Digital Upgrades
Digital twin technology enables dynamic simulation of process parameters, achieving over 90% accuracy in predicting machining defects. Adaptive machining systems, equipped with acoustic emission sensors, monitor cutting conditions in real time, with error compensation precision reaching 0.1μm. These innovations have shortened processing cycles by 20% and raised product yield rates above 98%, significantly boosting production efficiency.
4. Enhanced International Competitiveness: Navigating Trade Barriers and Expanding Global Markets
Export Market Recovery and Diversification
Despite a potential 10%-15% decline in exports to Europe and the U.S. due to anti-dumping investigations in 2025, enterprises are mitigating risks by expanding into emerging markets like Southeast Asia and the Middle East and establishing localized production bases. Participation in international standard-setting (e.g., ISO graphite electrode testing standards) has also strengthened technological influence and global image.
Green Brand Building
Some companies have developed low-carbon graphite electrode brands to meet international demand for eco-friendly products. For example, publishing ESG reports and engaging in carbon trading markets have enhanced international recognition, providing new growth drivers for exports.
Conclusion: Balancing Challenges and Opportunities, Moving Toward High-End and Green Development
While environmental policies have driven industry upgrades, they have also introduced challenges such as rising raw material costs and increased environmental investments. However, the widespread adoption of EAF steelmaking, expansion of new energy industries, and precision demands in semiconductor manufacturing have created a trillion-yuan market opportunity. In the future, leading enterprises with technological reserves and integrated supply chains will dominate the market, while cross-sector collaborations (e.g., coordinated R&D between graphene batteries and electrodes) may emerge as key to overcoming growth bottlenecks. The synergistic effects of policy guidance, technological innovation, and market demand are reshaping the global graphite electrode industrial ecosystem.
Post time: Aug-13-2025