GrafTech International has recently expressed concerns about the steel industry’s struggles in the face of global economic uncertainty, leading to a decrease in demand for graphite electrodes. These electrodes are crucial in conducting power for electric arc furnaces, a key component of steel production.
Steel Industry Outlook:
The company, based in Brooklyn Heights, Ohio, acknowledges that the commercial environment’s persistent softness, combined with global economic uncertainty, has led to a weak demand for graphite electrodes in the near term. This situation has limited steel industry production.
Carbon Reduction Efforts:
However, GrafTech International believes that the steel industry’s increasing efforts to decarbonize will favor the adoption of the electric arc furnace method for steelmaking. This shift towards a more sustainable steelmaking process is expected to drive long-term demand growth for graphite electrodes.
Third Quarter Performance:
To align with the demand outlook, GrafTech International adjusted its production output in the third quarter of this year. The company produced only 22,700 metric tons of graphite electrodes, representing a significant 40% decrease compared to the same period last year.