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China electrode exports

Competition & Market Structure · China overcapacity

What it is

China holds dominant global graphite electrode capacity and exports surplus when domestic steel demand weakens. Oversupply, trade friction and Chinese dominance defined the global graphite market through 2025

Chinese capacity is also moving up into large-diameter UHP grades previously supplied by a handful of Western and Indian producers

Impact on industries

  • Caps global electrode pricing regardless of regional demand, since Indian and Western producers compete against exported surplus
  • The move into UHP erodes the premium segment that non-Chinese producers relied on for margin
  • Trade remedies in the US and EU against Chinese electrodes create space for Indian exporters in those markets
  • The same dynamic seen in steel, tyres and wire - Chinese tonnage displaced from Western markets seeks price-sensitive destinations including India

Industries affected