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    Market Segment

    July 21, 2017

    EAF Mills Facing Electrode Shortage

    Written by Sandy Williams

    Graphite electrodes used in electric arc furnaces are short in supply, causing concerns for EAF and ladle metallurgy (LMF) steel mills. Electrode manufacturers have reduced capacity in the past several years by an estimated 200,000 metric tons annually, according to some sources.

    China electrode producers had priced other companies out of the market by offering prices that were much lower than their competitors. Competing producers needed to charge two to three times more for ladle furnace electrodes versus EAF in order to keep margins up. As the Chinese government cracked down on emissions and capacity, less furnaces were in the market for electrodes, resulting in China capacity falling to around 50 percent, reported Platts. With abundance of low priced scrap and closure of induction furnaces, capacity is currently improving in China.

    Sandy Williams

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