30+ YEARS OF EXPERIENCE IN CARBON INDUSTRY

The evolving situation of the US-Iran conflict has exerted a generally negative impact on China’s graphite electrode industry. In the short term, the effects are primarily reflected in rising costs and shrinking demand.

PART 01. Cost Increase

Oil Price Volatility Triggers Chain Reactions

The blockade of the Strait of Hormuz, a critical global oil transit chokepoint, has directly led to tight international crude supply and a sharp rise in oil prices. Petroleum coke, a key raw material for graphite electrode production, is closely linked to crude oil prices. The increase in oil prices quickly transmits to the petroleum coke market, driving up raw material costs and subsequently raising the production cost of graphite electrodes.

PART 02. Demand Contraction

Double Blow to Graphite Electrode and Steel Exports

1. Graphite Electrode Export Obstacles

   The chain reaction throughout the upstream and downstream industries has further aggravated the decline in demand for graphite electrodes in China’s market.

PART 03. 2026: Overlapping Trade Barriers Worsen Export Challenges

In 2026, in addition to the impact of the US-Iran conflict, China’s graphite electrode exports face multiple trade barriers from other countries.

Japan imposes an anti-dumping duty as high as 95.2% on Chinese graphite electrodes; the Eurasian Economic Union also levies anti-dumping duties of up to 22.51%. The United States has set up even more obstacles: besides a 159.64% anti-dumping duty on small-diameter graphite electrodes for furnaces, the U.S. LDGE Fair Trade Coalition filed an anti-dumping investigation application on February 24 targeting all large-diameter graphite electrodes from China. The investigation scope is extremely broad—regardless of length or whether finished, all are classified as furnace-use types, provided the nominal or actual diameter is over 425 mm (16.7 inches). The alleged dumping margin is up to 146.41%. If the investigation concludes affirmatively, China’s graphite electrode exports to the U.S. could drop to zero.

In 2026, China’s graphite electrode exports face significant difficulties. International demand continues to shrink due to various trade barriers and geopolitical factors, while export costs surge owing to rising freight and anti-dumping duties. Consequently, many graphite electrode producers have had to shift originally export-oriented products to the domestic market.

However, the domestic market is also under pressure, with signs of weakening end-user demand. To tackle this challenge, companies may need to implement phased production cuts in the coming period to regulate market supply, avoid excessive competition leading to further price declines, stabilize market prices, and support the healthy development of the industry.