
SCIN explores opportunities in Graphite Electrodes Export Business
Contributed by Mr Suraj Sarkar, SCIN Mineral Resources Dept
October 2023
New Delhi, India
Graphite Electrodes (GE) are the main heating element in an electric arc furnace that melt used iron scrap and recycle it into new steel. GE can provide high level of electrical conductivity and is capable of sustaining high level of heat generated.
SC Tokyo used to be actively exporting Japanese GE worldwide. However, during the last few years, there had been acquisitions in GE industry with 2 Japanese companies Resonac and Tokai taking over assets in USA, Europe & Asia. This led to reduction of export of GE from Japan, prompting SC Tokyo to find new suppliers outside Japan. Therefore, representing SC Tokyo, we started approaching 2 major Indian GE makers – Graphite India Limited (GIL) and HEG Ltd.
| Major GE Makers (outside China) | ||||||
| Name | Capacity (MT) | Plant Locations | ||||
| Resonac (formerly Showa Denko) |
252,000 | Japan, USA, Germany, Austria Spain, Malaysia, China |
||||
| Tokai | 100,000 | Japan, USA, Germany | ||||
| SEC | 25,000 | Japan | ||||
| Nippon Carbon | 25,000 | Japan | ||||
| Graftech | 230,000 | France, Spain, USA, Mexico | ||||
| GIL | 98,000 | India, Germany | ||||
| HEG | 100,000 | India | ||||
Why GIL & HEG? SC is the supplier of critical raw material – needle coke that is used for making GE to these two Indian companies. This is supplied from Petrocokes Japan (PCJ) which is a company under Sumitomo Carbon Dept, so this facilitates our talk with them on new business.
SC Tokyo’s intention is to promote Indian GE among companies with whom we have deep rooted relation or association, through previous supplies or stakes. The major challenge we face is that GIL and HEG being leading manufacturers of GE, already have agents/representatives in almost all countries where electrodes are consumed, so it is not easy to break into this market.
Nevertheless, we are happy to share the progress and achievement that we have made so far:
With GIL
- Obtained quarterly contracts with Arkansas Steel & Standard Steel in USA for supply of GE
- Conduct trial orders with Nucor Nebraska USA and Baku Steel Azerbaijan
With HEG
- Obtained quarterly contracts with Arkansas Steel & Standard Steel in USA for supply of GE
*Supply of trial quantity under discussion with Outokumpu Finland and 3 Steel Mills in Italy.