Favorable Factors for the Development of China's Graphite Electrode Industry

Favorable Factors for the Development of China's Graphite Electrode Industry

1. The government promotes the development of ultra-high voltage graphite electrodes

According to the latest "Industrial Structure Adjustment Guidance Catalogue (2011)" (revised in 2013) issued by the National Development and Reform Commission of China, ultra-high-power electrodes with a diameter of 600 mm and above are related to the company's main business are included in the encouraged category. According to the "Guidance Catalogue of Key Products and Services for Strategic Emerging Industries (2016)" recently released by the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, the Ministry of Finance and other relevant departments, high-power graphite electrodes are new materials in emerging strategic industries. Policy guidance plays an important role in developing China's carbon industry, which will usher in a broad space for the future development.

2. The growth of the national economy has created a good environment for developing graphite electrode industry

The development of the industry is inseparable from the driving force of the national economy. The development of the national economy has ensured the country's continuous investment in infrastructure and the continuous growth of residents' consumption levels and capabilities, creating a very favorable environment for industrial development.

At present, the optimization and adjustment of China's economic structure are gradually deepening, and the manufacturing industry is continuously transformed and upgraded. In addition, the high-end manufacturing industry represented by the military industry, nuclear power, high-speed rail, and automobiles has ushered in rapid and sustainable development. These will further boost the demand for high-end special steel and promote the development of the graphite electrode industry.

3. The advantages of short-process steelmaking drive the demand for graphite electrodes

Carbon product graphite electrodes are key consumable materials for short-circuit steelmaking electric arc furnaces. The innovation and upgrading of the steelmaking process, the trend of improving the quality of special steel, the reuse of scrap steel, and the broad future space of electric arc furnace steelmaking in China will promote the demand for graphite electrodes.

4. Abundant source of graphite electrode raw materials

The raw materials for producing graphite electrodes are mainly needle coke and coal pitch. Therefore, the production of graphite electrodes needs to be selected in areas with convenient and concentrated sources of needle coke and coal tar pitch. China is the only country in the world with a sufficient supply of raw materials for needle coke and coal tar pitch, which provides good support for the sustainable development of graphite electrode production.

5. The graphite electrode industry conforms to the development of a green and circular economy

The production of graphite electrodes is a process of comprehensive utilization of resources. The main raw materials of graphite electrodes are coal tar and needle coke, by-products of petroleum and coal chemical industry. China is the world's largest producer of petroleum and coal chemicals, producing large quantities of petroleum coke and coal tar pitch every year. If there is no consumption by the graphite electrode industry, the by-products produced in these productions can only be used inefficiently, becoming a hidden danger of environmental pollution. At present, the petroleum coke, needle coke, and coal pitch produced in China every year are all used by the graphite electrode industry, which can bring huge profits of tens of billions of dollars to the petrochemical and coal chemical industry every year.

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