Overview of Graphite Electrode Exports by Key Countries in 2019

With the change in global steel market dynamics over past one year due to escalating trade war between U.S. and China, resulting trade barriers by key steel consuming countries, and poor steel consumption, the graphite electrodes demand, a key raw material for EAF steel manufacturing also suffered setback. While almost all the GE producing countries have recorded a plunge in their exports in the ongoing year, only China has registered a significant increase in the same. Let us analyse the GE export numbers of key countries in in 2018 vs 2019:

Chinese electrodes exports surges by 18% y-o-y

China has become a key producer of graphite electrodes in past two years after the supply side structural changes in the country that led to the promotion of EAFs for steel manufacturing. While 2018 was a year during which Chinese producers aggressively built up the GE manufacturing facilities, the plants were put into production in 2019. However, unexpectedly China's GE supplies exceeded the domestic demand resulting which country resorted to exports of electrodes.

In first ten months (Jan-Oct) of 2019, China exported about 0.33 MnT of GE against 0.28 MnT in the previous year, recording a surge of 18% y-o-y basis. During the year, highest exports were made to Malaysia (56,823 tonne) followed by Turkey (27,843 tonne), and South Korea (24,474 tonne). Whereas last year, the key countries to which China exported electrodes were Iran, U.S., and Russia.

India's GE Exports registers a fall of 27% y-o-y

In case of India which is also a key GE exporting country, its exports during Jan-Oct have recorded a plunge of 27% y-o-y basis from 68,517 tonne 2018 to 49,499 tonne 2019. In the ongoing year, India has completely stopped its exports to Iran (which was one of its key export destinations) amid sanctions by U.S resulting in its electrodes export fall. In 2019, India's key GE export countries were South Korea, Egypt, and Turkey whereas in 2018 it were Iran, Saudi Arabia, and Turkey.

Japanese electrode exports plummet by 25% y-o-y

Like India, Japan's electrodes exports have also registered a plunge of 25% from 87,617 tonnes in Jan-Oct'18 to 65,301 tonnes in the same period of 2019. The key export destination for Japan in both the years were South Korea, U.S., and Japan and the overall poor steel demand globally can be attributed to the fall in the Japanese electrodes' exports.

EU's graphite electrodes exports record a marginal plunge

European Union which has manufacturing base of key GE producing companies such as GrafTech and Showa Denko is also one of the major electrode exports region. In first nine months (Jan-Sep) of 2019, EU exported about 73,896 tonnes of electrodes against 77,448 tonnes in the corresponding period pf previous year. However, EU's export destinations in both the years remains the same with Russia, Turkey, U.S., and South Korea.

Russia and U.S. GE export descends

Russia's graphite electrodes exports have plunged from 35,039 tonnes in Jan-Sep'18 to 30,802 tonnes in Jan-Sep'19. The country has presence of only one electrodes manufacturer, Energoprom Group and the highest exports in both the years have been made to U.S, Kazakhastan and Brazil.

In case of U.S., also, the country's GE exports have plunged from 13,845 tonnes during Jan-Sep'18 to 10,969 tonnes in Jan-Sep'18. Its export trend in both the year have remained same with top export destinations being Canada, Mexico, and Argentina.