Rising Chinese Demand for Graphite Products to Foster Growth in the Global Carbon and Graphite Market, According to New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on Carbon and Graphite markets. The global market for Carbon and Graphite is forecast to exceed US$9.1 billion by the year 2018, encouraged by the improved demand from major end-use industries post economic slowdown. Newer application markets, intense competition and enhanced production capacity will usher robust growth prospects. In particular, strong demand for Graphite products from developing markets such as China ensures positive outlook for the Carbon and Graphite market in the long-term.

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Carbon and Graphite: A Global Strategic Business Report

San Jose, California (PRWEB) November 06, 2012

Follow us on LinkedIn – Carbon and graphite market prospects are heavily tied to the end-use industries, including aluminum and steel. Primary aluminum represents a major end-use industry for carbon and graphite products. Aluminum demand has been increasing at a healthy pace over the past few years. The increasing per capita steel consumption in China and India are primarily accelerating the worldwide steel consumption. The healthy growth in aluminum and steel end-use industries is expected to increase the consumption of carbon and graphite products, in turn improving market prospects. Graphite finds myriad traditional applications in brushes, automotive parts, and lubricants. In near future, the market is predicted to witness renewed demand from several industries in both developing and developed countries. The vigorous demand could arise on account of significant growth in carbon-based applications including space exploration and computers. Graphite consumption is growing in North America and in developing Asian countries on account of modernization and technological improvements in iron & steel and automotive industries. The Asian markets are expected to emerge as key growth drivers of graphite and carbon market and compensate for slower growth in developed markets.

Worldwide demand for carbon and graphite slumped in 2008 and 2009, as a result of the global economic crisis. The financial meltdown adversely impacted iron & steel and automotive industries, the two major end-use segments of carbon and graphite, which in turn resulted in demand erosion for carbon and graphite. The unavailability of ready credit and liquidity crunch forced several graphite producers to close or cut down their mining operations. Adding to the woes, regulatory changes in China and unfavorable weather conditions further dented the demand for carbon and graphite. Nevertheless, demand for graphite was back on track by 2010, driven mainly by the recovery in steel and automobile end-use industries. Surging production of new vehicles and growing need for replacement parts is expected to fuel consumption of graphite products going forward. In particular, lithium ion batteries are likely to spearhead growth for natural graphite. These rechargeable batteries are used in motorized vehicles, power tools and electronic devices among others.

Currently, the global carbon market is characterized by over-supply due to rapid capacity expansions of some of the major players in the recent past. Growth in the market for carbon black, used mainly for tires and color pigments, is driven mainly by the Chinese and Indian markets which have been expanding at a significant pace. A large portion of carbon black produced worldwide is utilized in reinforcing goods made of vulcanized rubber and with the global rubber market regaining poise post recession, spike in demand for carbon black is anticipated from this end-market. Tire production is gradually shifting to low cost Asian countries from the high cost geographies of EU and the US, and demand from emerging markets of China and India for Carbon Black is likely to gain strength over the coming years. Growing clamor for fuel efficient ground vehicles worldwide is acting as a major factor pushing growth in the carbon fiber market.

The United States is the largest regional market worldwide, as stated by the new market research report on Carbon and Graphite. The US is a major market for activated carbon, accounting for a large share of the world market. The mercury control technology for industrial air and water purification is forecast to boost demand for activated carbon, both virgin and reactivated types, in the near future. Asia-Pacific is set to emerge as a rapidly growing regional market at a CAGR of over 3.0% through 2018, driven by the burgeoning Chinese and Indian markets. China and India comprise two of the largest global producers of natural graphite. China is one of the primary producers of amorphous and flake graphite, accounting for more than a quarter of world production Several factors such as substantial graphite resources, low labor costs, etc contribute to a steady market growth even during poor demand conditions. With a prominent position in trading, the country is expected to experience immense growth led mainly by overseas investment.

By product segment, Carbon and Graphite Electrodes dominates as the largest market. Growth in graphite electrodes market is heavily reliant on the steel industry. Compared to amorphous carbons, graphite electrodes displaying greater operating performance, higher corrosion & thermal-shock resistance have gained popularity over the years. The graphite electrodes segment is also poised to expand at a robust rate of over 4.3% through 2018.

Major players profiled in the report include Cabot Corporation, Mersen, GrafTech International Ltd., HEG Ltd., Hexcel Corporation, Mitsubishi Rayon Co., Ltd., GRAFIL Inc., Morgan Crucible Company Plc, Orion Engineered Carbons LLC, SGL Carbon SE, Showa Denko K.K, Toho Tenax Co., Ltd., Toray Industries Inc., and Zoltek Companies Inc., among others.

The report titled “Carbon and Graphite: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the carbon and graphite markets, impact of recession, current market trends, key growth drivers, product introductions, recent industry activity, and profiles of major/niche global as well as regional market participants. The report provides annual sales estimates and projections for Carbon and Graphite market for the following geographic markets - US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. Key segments and sub-segments analyzed include Carbon and Graphite Electrodes (Carbon Electrodes, and Graphite Electrodes), and Other Carbon and Graphite Products (C&G Automotive Brushes, C&G Industrial Brushes & Contacts, C&G Brush Plates, C&G Fibers, C&G Products for Electrical Uses, C&G Products for Mechanical Uses, C&G Products for Aerospace Uses, and C&G Products for Other Uses). The study also provides historic data for an insight into market evolution over the period 2004 through 2009.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Carbon_and_Graphite_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
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Email: press(at)StrategyR(dot)com
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