By Marie de Wet
GrafTech International Ltd. said near-term steel demand had weakened amid economic uncertainty and geopolitical headwinds.
On the outlook for steel:
“Ongoing geopolitical tensions and global economic uncertainty have dampened near-term demand for steel and, consequently, graphite electrodes,” said CEO and President Marcel Kessler.
GrafTech said the current environment for the steel industry remains unstable.
“Key markets, such as Europe, [are] continues to experience weakening demand as macroeconomic conditions deteriorate,” said the company, which manufactures graphite electrodes for the production of electric arc furnace steel and other ferrous and non-ferrous metals.
“Trends in the steel industry have also softened somewhat in the United States, although the market remains relatively healthy and more stable.
“As a result, we expect demand for graphite electrodes to remain weak in the fourth quarter of 2022 and into 2023, reflecting market dynamics, which continue to be driven by geopolitical strife and economic uncertainty.
“Longer term, we remain confident that accelerating steel industry decarbonization efforts will lead to increased adoption of the electric arc furnace method of steelmaking, driving long term demand for graphite electrodes.
Write to Mary de Wet at [email protected]