Global Graphite Electrode Conference 2018 being organized by SteelMint is presently underway in Mumbai where industry experts from across the globe have gathered to express the views and opinion on the volatile GE industry. Live coverage of Question and answer session of the Conference below.
How will the industry be impacted with China continuously adding EAF capacity?
In China presently 57 EAF plants are coming up with each having about 1 to 1.25 mnt capacity per plant. That accounts for about 60 to 70 mnt of fresh capacity. There are around 35 plants already existing. China is substituting closed capacity with EAF. Demand is visibly high there. There will certainly be an impact on demand side but we cannot assume that supply of Graphite Electrode would be restricted. There is a demand supply mismatch which would last for between 2 to 3 years. There are two drivers behind EAF development in china, first is to avoid environmental issue in future. And the other is to compensate for closed capacity. Chinese can hinder the GE export from China to protect the steel industry. It remains an important raw material.
What is the contribution of Chinese GE suppliers?
It is difficult to track the Chinese market right now. The precise amount of GE being produced is not available with us right now. We need to understand that quality of Chinese product is different. Ultra high power GE is being produced by India, Japan etc. but the production of this is limited in China. EAF producers in China itself avoid using entirely Chinese made electrode. China could play a role but Graphite capacity in China has also been closed. It is a possibility that more capacity can be closed.
What is synthetic graphite how can it disruptive? Are there new capacity?
Natural graphite has a different structure. The molecular structure is such that it can withstand a lot of heat. It is not very likely a substitution can happen any time soon.
India commands 25% global market share? What if the Indian Government imposes 20% export duty on GE to protect its domestic steel industry?
Graphite India and HEG, the two India suppliers were selling their product at differential prices to large producers and to those procuring a limited quantity. It is due to this differential pricing the smaller steel producers approached the Indian government and suggested that an export duty be imposed as protective measure.
The Govt. did consider the suggestion. However now of late pricing has been equalized for all Indian producers. Now this issues of imposing export duty is not be looked at very serious of late.
What are chemical components which can reduce cost for EAF?
You need energy to make steel. You can take either for Chemical energy through exothermic reactions. Or electric energy which needs GE. Technically if it is viable they can use high speed injection for carbon. That way more energy is coming from chemical reaction. However it is not an easy task. If a study is done you can arrive at a formula to balance both. However in the past GE was not a cost factor so no research has been done in this. But at this point in time there can be a lot of attention drawn towards these estimates and cost analysis.
Are there any alternatives being seen in place of EAF production to mitigate rising cost of GE?
Not right now. BOF and LF combination can be considered. But still these industries are polluting. This can be helpful in the short term.
Is any new GE entrant expected as the industry is in strong upcycle?
–Technology restriction, it was shared by US and German companies in INDIA, the possibility of the exchange happening is limited. No capacity has been seen in china also. Not likely. Graphetization needs a 20 feet bunker and other furnaces. This setup cant be done by everyone.
–Equipment not available. It needs customized requirement. Last equipment was supplied almost 40 years back when the last GE plant was set up in India.
–More likely existing players will expand. Capital need is high. Graftech 35000 tonne increase. HEG going up from 85 to 100,000.
If GE is coated before use can it have an impact on reducing amount used?
There are few developments being made in this direction. There are a few materials and technologies being developed to reduce GE use.
Do you think enough Needle coke is available to carry out expansion?
It takes 2 to 3 years to respond to the demand on needle coke demand expansion. If we look at Needle coke capacity it is 8 to 9 lac tone. While use was low in EAF Needle Coke started being used in E Konokophilips has 60 % capacity. 75000 it will add more brownfield. But it can not fuel capacity expansion now.
Converting CPC and CTP also requires conversion time. To increase CPC would require alterations in the refinery process which will in itself take time.
Though there is demand for Needle coke? But why is coal tar pitch is not increasing?
Coal tar pitch is abundantly available. But converting it to Needle coke is a different story altogether. The technology required is being closely guarded.
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