graphite electrode UHP550mm

7 month ago

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Hebei Shitu New Materials Technology Co., LTD

7 month

Product details

Entry barriers in the graphite electrode industry

(1) Technical barriers

The continuous large-scale development of electric furnace steelmaking has led to an increase in the difficulty of smelting technology along with the rise of uncontrollable factors in the production process. The uncontrollable factors of graphite electrodes in this process have also increased accordingly. Therefore, the technical requirements for graphite electrodes have been constantly rising along with the development of large-scale electric furnace steelmaking. With the increase of the power of the electric furnace, the electromagnetic force inside the furnace increases, which may cause the graphite electrode to vibrate violently. Under intense vibration, the probability of electrode breakage rises, and the requirements for the physical and chemical properties of the graphite electrode are also constantly increasing.

(2) Customer barriers

Graphite electrodes are mainly used in downstream electric arc furnace steelmaking. Domestic electric arc furnace steelmaking producers are mainly state-owned enterprises, and the selection of suppliers is relatively strict. Both sides will have a long period of communication and adjustment on the sales and use of products, forming a relatively stable cooperative relationship. The conversion cost for customers is relatively high, and they will not easily change suppliers. It takes new graphite electrode manufacturers at least one year or more to enter the supply chain system of high-quality downstream customers, which constitutes a certain customer resource barrier for new graphite electrode production enterprises.

(3) Capital barriers

The production cycle of graphite electrodes is relatively long, with high raw material costs, labor costs, and equipment costs. Producing graphite electrodes requires a large amount of capital investment and a strong capital turnover capacity. Financial strength is one of the thresholds for new participants to enter the graphite electrode production industry.

Overall, as the demand for UHP graphite electrodes is increasing compared to RP graphite electrodes and HP graphite electrodes, the advantages of large factories will become more and more obvious

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Hebei Shitu New Materials Technology Co., LTD

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7 month

Main Product: graphite electrode, graphite power, carbon electrode, graphite scrap, graphitized petroleum coke, calcined petroleum coke

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