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EAF transition (decarbonisation)
What it is
The global shift from blast furnace steelmaking to electric arc furnaces, driven by carbon pricing and decarbonisation targets. Every EAF consumes graphite electrodes, which are progressively burned away during melting
Electrode demand therefore scales directly with EAF steel output rather than with total steel production
Impact on industries
- The core structural growth driver for electrodes - EAF share rising anywhere in the world expands the consumable market
- Hydrogen-DRI fed EAFs run at higher power, requiring larger-diameter UHP electrodes and lifting value per tonne
- Near-term demand is hostage to the steel cycle regardless of the structural trend, and downstream mill demand has been sluggish
- India's own transition is slow because the scrap pool is small, so domestic electrode demand growth lags the global decarbonisation narrative