Recent Market Trends for Carbon Additives

The core conflict in the current carbon additive market lies in the tug-of-war between sharply rising raw material costs and weak downstream demand.

Demand Side

Overall operating rates at downstream steel mills remain low, steel demand is lackluster, and steel mill profits are under pressure; as a result, most mills are limiting purchases to essential needs and are strongly inclined to drive down prices. Taking electric arc furnace (EAF) steel mills as an example, in mid-March 2026, the average capacity utilization rate of 94 independent EAF steel mills nationwide was 50.44%, with an operating rate of 57.34%. Although this represents a month-over-month increase, it remains lower year-over-year. With profit margins constrained, the likelihood of increased production is low.

However, there are structural bright spots in medium- to long-term demand. The share of electric arc furnace steel production in the steel industry continues to rise (reaching 14.2% in 2025), and the upgrading of specialty steel and high-end manufacturing is driving growth in demand for low-sulfur, low-nitrogen high-end carbon additives. The global market for low-sulfur, low-nitrogen carbon additives is projected to grow at a compound annual growth rate (CAGR) of approximately 4.2% from 2026 to 2032.

Supply Side

Overall production capacity for coke-based carbon additives remains relatively stable, with ample supply. In contrast, graphitized and petroleum coke-based carbon additives face supply constraints due to raw material shortages. Regarding petroleum coke-based carbon additives, refineries have seen only limited resumption of production, and raw material shortages persist.