India graphite electrode market is segmented by: grade (regular power RP, high power HP, and ultra high power UHP), diameter (small up to 400 mm, medium 450-550 mm, and large 600 mm and above), raw material route (needle coke-based and petroleum coke-based), and application (EAF scrap-based steel, ladle furnace and refining in blast furnace mills, silicon, ferroalloy and other submerged-arc furnaces, and other specialty non-steel).

The India graphite electrode market is estimated at USD 250 million in 2026 (USD 236 million in 2025) and is projected to reach USD 448 million by 2036, registering a compound annual growth rate of approximately 6.0%. India is the world’s second-largest steelmaker, with crude steel output of about 170 million tonnes in 2025–26 on installed capacity of roughly 220 million tonnes, and it is also one of the largest sources of graphite electrodes outside China. The country is therefore both a fast-growing consumer of EAF graphite electrodes and a global supply base, and the two roles pull in different directions.

Domestic graphite electrode demand does not simply mirror steel growth. Electric arc furnaces hold only about a fifth of national capacity, at roughly 46 million tonnes. Induction furnaces, which need no graphite electrodes, still make a large share of Indian steel, and close to two-thirds of the capacity planned under the 300 million tonne goal for 2030–31 is blast furnace-based. Electrode consumption in India will rise more slowly than crude steel output, and the richest pools of demand are in ladle furnace refining, DRI-EAF clusters, alloy and special steels and export markets.
Producers are enjoying an upswing. HEG’s standalone revenue rose about 11% to ₹681 crore in April–June 2026 with its plant running above 90% utilisation, while Graphite India lifted utilisation to 97% from 82% a year earlier. The questions for boardrooms and investors are whether Indian suppliers keep their foothold in the United States, how quickly new capacity arrives, and whether the home market can absorb more volume if export doors narrow.

India Graphite Electrode Market: 2025 data

India Graphite Electrode Market Growth Drivers
Steel capacity build-out. The Ministry of Steel is working towards 300 million tonnes of capacity by 2030–31 and has spoken of 400 million tonnes by 2035–36. Steel consumption has already doubled from 77 million tonnes in 2014–15 to 152 million tonnes in 2024–25, and each new melt shop adds recurring electrode demand.
EAF and DRI-EAF additions. Tata Steel commissioned a 0.75 million tonne scrap-based EAF at Ludhiana in March 2026. If EAF capacity rises from about 46 million tonnes to around 55 million tonnes by 2030, indicative demand at 1.5–2 kg of electrode per tonne would grow by roughly 13,000–18,000 tonnes a year.
Sponge iron base. India and Iran together produce more than 70% of the world’s direct reduced iron. This deep DRI base can feed electric furnaces when scrap is scarce and is the natural platform for future green hydrogen-based steelmaking.
Specialty steel push. A production-linked incentive scheme supports specialty steel, which the government expects to reach 42 million tonnes by the end of 2026–27. Alloy, stainless and special grades are melted and refined in electric furnaces and use UHP graphite electrodes, so higher value steel carries more electrode demand per tonne.
Export pricing tailwind. Global electrode price increases announced in 2026 flow directly to Indian producers who sell most of their output abroad, and HEG expects higher contract prices to lift earnings from October 2026.
Domestic capacity additions. HEG’s ₹650 crore brownfield project and the first phase of Graphite India’s expansion give the country new electrode supply close to its own steel growth, reducing import dependence over time.

Policy, Trade and Cost Factors Shaping the India Graphite Electrode Industry
US trade action. Preliminary countervailing duty determinations on large-diameter electrodes were published at the end of July 2026: 6.99% for HEG and 3.68% for Graphite India, with an anti-dumping case running alongside. The three-point gap shows that outcomes will be company-specific, and the final countervailing decision, expected around 8 December 2026, will set the terms of access to the largest premium market.
Export diversification. HEG sells into about 35 countries, and no single destination can be allowed to dominate. Europe’s steel safeguards, Brazil’s investigation and conflict-related weakness in the Middle East, a long-standing outlet for Indian electrodes, make destination mix a core commercial decision.
Needle coke and input costs. Indian producers rely on imported needle coke, and HEG’s first-quarter margin was helped by consuming older, cheaper coke stock. As that inventory turns over, new price increases need to hold to protect margins.
Power and plant economics. Graphitisation is energy-intensive. HEG’s Mandideep complex operates about 80 MW of captive power and Graphite India has around 18 MW of captive hydel capacity, which cushion cost swings that hurt producers buying grid power.
Carbon policy. The EU carbon border mechanism raises the cost of exporting higher-emission steel to Europe, pushing Indian mills to evaluate lower-carbon electric routes over the next decade.

Key India Graphite Electrode Market Trends and Insights
Exports carry the growth, home demand carries the base
Indian producers ship most of their output abroad, so national consumption figures understate the scale of the industry. Anyone sizing the India graphite electrode market has to read domestic EAF demand and export flows together, because trade policy abroad can move Indian volumes faster than anything happening in local steelmaking.
Induction furnaces cap domestic upside
A big part of Indian steel is made in induction furnaces that do not use graphite electrodes. Any policy or economic shift that moves such mills towards DRI-EAF or larger arc furnaces would add domestic demand at a scale that organic growth alone does not.
Utilisation is near its ceiling
With HEG above 90% and Graphite India at 97%, there is little room for volume growth from existing plants. Announced additions of about 28,000 tonnes a year, close to 16% of today’s combined capacity of roughly 180,000 tonnes, will determine how much India can supply to 2028.
Diversification is reshaping corporate strategy
The National Company Law Tribunal approved HEG’s scheme of arrangement on 19 August 2026, creating two separately listed companies and separating its advanced materials activities from electrodes. Graphite India is exiting less competitive European operations while developing anode materials and advanced materials for aerospace and defence. Capital is being allocated beyond steel, which will affect how fast electrode capacity grows.
Price increases reach Indian books with a lag
Graphite India’s electrode revenue fell 11% quarter on quarter in April–June 2026 as blended realisations slipped 4%, before the latest increases were booked. Margin benefit is expected to show from the second half of FY27 as higher-priced orders ship, so the full effect of the price reset is yet to appear in Indian results.

India Graphite Electrode Market Segment-wise Analysis
By Grade and Diameter
UHP and SHP electrodes lead export sales and the newer, larger furnaces, while RP and HP grades serve smaller EAFs, ladle furnaces and price-sensitive mini-mills. Large diameters of 600 mm and above are the product band targeted in the US investigation, so the share of Indian output in this band is the main exposure to watch.
By Application
Scrap-based EAFs and DRI-based EAFs form the core, with the latter concentrated in sponge iron clusters where raw material supply and power availability drive furnace runs. Alloy, special and stainless steel melting is a high-specification niche with qualification barriers. Ladle furnaces in integrated blast furnace mills are a growing source of demand as new integrated capacity is added, and green hydrogen-based steelmaking is a post-2030 option.
By Sales Channel and Destination
Large steel groups buy through annual tenders and long-term supply agreements, while smaller mills depend on distributors and spot purchases. Exports move mainly through direct contracts with steelmakers across Europe, North America, the Middle East and Asia, with contract pricing following global benchmarks.
By Region
Eastern India, including Odisha, Jharkhand, Chhattisgarh and West Bengal, holds the largest share of steel capacity, with Odisha now the biggest state at about 45 million tonnes. Western and southern states host coastal mills and mini-mill clusters, northern states such as Punjab and Haryana concentrate scrap-based EAF and induction capacity, and Madhya Pradesh is home to India’s largest graphite electrode plant at Mandideep.

India Graphite Electrode Market Competitive Landscape
The industry is a duopoly. HEG, part of the LNJ Bhilwara Group, operates from Mandideep near Bhopal and is targeting 115,000 tonnes a year by early FY2027–28. Graphite India, with about 80,000 tonnes of capacity, is working on a first phase of 13,000 tonnes due in FY2027 and reported consolidated net cash of about ₹3,900 crore at June 2026, a balance sheet that lets it fund growth without leaning on borrowing.
The two companies compete on different strengths. HEG is the specialist in large-diameter UHP for export with high utilisation and own power, while Graphite India is broadening into anode and advanced materials and carries the lower preliminary US duty rate, which could help it win business in North America if the final rates hold.
Over the forecast period, share is likely to move towards the producer that commissions capacity on schedule, secures needle coke and keeps US market access. Domestic steel mills will increasingly value suppliers that offer local stock, technical support and assured availability when global supply is tight.

India Graphite Electrode Market Segmentation
Consumption, production, imports and exports from 2026 to 2036 are segmented as follows.
By Grade
•    Regular power (RP)
•    High power (HP)
•    Super high power (SHP)
•    Ultra high power (UHP)
By Diameter
•    Small (up to ~400 mm)
•    Medium (~450–550 mm)
•    Large (600 mm and above)
By Raw Material Route
•    Needle coke-based
•    Petroleum coke-based and other
By Application
•    EAF scrap-based carbon steel
•    EAF DRI-based and hot-metal charge
•    EAF alloy, special and stainless steel
•    Ladle furnace and refining in integrated mills
•    Ferroalloy, silicon and other submerged-arc furnaces
•    Emerging: H2-DRI-EAF and electric smelting
•    Others (specialty, non-steel)
By Trade Flow
•    Domestic production for domestic consumption
•    Production for export
•    Imports
By Buyer
•    Integrated steelmakers’ EAF and ladle furnace units
•    Independent EAF and mini-mills
•    Special, alloy and stainless steel makers
•    Ferroalloy and silicon makers
•    Traders, importers and distributors
By Sales Channel
•    Annual tenders and long-term contracts
•    Distributors and traders
•    Direct export contracts
By Region
•    North India
•    East India
•    West India
•    South India
•    Central India
Key India Graphite Electrode Manufacturers Covered
Leading Indian producers and exporters include, but are not limited to:
•    HEG Limited
•    Graphite India Limited
•    Other regional graphite electrode and carbon product manufacturers, needle coke suppliers and trading companies