Graphite Electrode Industry Observation: Technological Breakthroughs and Market Pressure Go Hand in Hand
In July 2026, China's graphite electrode industry exhibited a divergent pattern of "technological breakthroughs and market pressure."
Market Situation: Prices Fluctuate Weakly
Affected by weakening demand from downstream steel mills and declining exports, graphite electrode prices have recently been weak. As of mid-July, the price of ordinary power graphite electrodes was 13,600-14,700 yuan/ton, high power 15,000-15,400 yuan/ton, and ultra-high power φ450 approximately 16,000 yuan/ton, a week-on-week decrease of approximately 300 yuan/ton. May exports totaled 24,900 tons, a year-on-year decrease of 7.3%; cumulative exports from January to May totaled 127,600 tons, a year-on-year decrease of 14.4%. The decline in raw material petroleum coke and asphalt prices further weakened cost support, and the market is expected to remain weak in the short term.
Technological Breakthrough: First Export of Φ800mm Electrodes
Fangda Carbon signed a supply contract with an overseas customer for ultra-high power Φ800mm graphite electrodes, marking the first export of this product specification and breaking decades of foreign technological monopoly. This product is a core consumable for 100-ton-level electric arc furnaces, and its overall technical performance reaches international advanced levels, signifying that Chinese carbon enterprises have entered the international high-end market.
Company News: Intelligentization and Industry Recognition
Fangda Carbon's jointly developed "Intelligent Formula Optimization System for Graphite Electrodes" has been put into use, empowering intelligent carbon manufacturing with AI. The company holds over 80 patents and undertakes 3 national-level major science and technology projects. On July 8th, Fangda Carbon received two honors at the 19th Carbon Industry Chain Market Seminar: the "2026 National Graphite Electrode Pioneer Enterprise Award" and the "Export Excellence Award."
Industry Chain Cooperation and Production Capacity
Pingmei Shenma Group signed a cooperation agreement with Sinopec and others for high-end needle coke applications, building a collaborative model across the entire industry chain. A 22,000-ton-per-year ultra-high power graphite electrode project in Guangyuan, Sichuan, with a total investment of 500 million yuan, has been signed. China ranks first globally with a production capacity of 3.2 million tons, but due to environmental protection-related production restrictions, the effective capacity utilization rate is expected to fall to around 78% in 2026.
Future Outlook
Global demand for graphite electrodes is expected to exceed 1.8 million tons in 2026, with applications in the new energy sector gradually opening up. The European carbon border adjustment mechanism and the US IRA Act are driving regional demand growth, bringing both competition and opportunities. The industry as a whole is in a period of adjustment, and balancing technological breakthroughs with market expansion is the core issue.
