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Global Expandable Graphite Market Is Valued At USD 214.6 Million In 2018
Expandable Graphite is a new type of functional carbon material. It is made by the natural graphite flake, and is the unexpanded graphite, i.e. it is a type of natural graphite that before expanded.
Global giant manufactures mainly distributed in China, U.S. and E.U. The manufacturers in U.S. and E.U. have a long history and unshakable status in this field. Xingchen Graphite, GrafTech, Nacional de Grafite, Jinhui Graphite, Tianfeng Graphite, Black Dragon Graphite, SGL Group, Sanyo Corp, Yanxin Graphite, Huabang Graphite and Nacional de Grafite are the key producers in the global expandable graphite market. Top five took up about one half of the global production in 2018.
The expandable graphite production reached about 94.3 thousand MT in 2018 from 98.3 thousand MT in 2014 at an average annual growth rate of -1.05% due to a decline trend in China market since 2015 (with the main reason of strictly environmental protection). China is the largest production of expandable graphite in the world in the past few years and it will keep the same position in the next few years. The Chinese market took up about 60% the global market in 2018, the second largest is Europe (15%) and North America is followed with the share about 12.8%.
The key consumption markets locate at APAC countries. China takes the market share of 37%, followed by Europe and North America with 22.7% and 22.2%.
In the international market, the marketing channels characteristic differ from company to company.
The giant companies are more likely to set their own big agents in some major countries and regions taking charge of regional business building their international market position.
Companies in developing countries such as China and India, in contrast, put more effort on direct selling business. They can act as exports at the same time, and it is a common phenomenon in this industry. As they do not have that much international brand influence, their product quality is not good enough when comparing with leading companies, however, they have price advantage. They like to expand their market share in developing countries and low-end international market.
The market is not only influenced by the price, but also influenced by the product performance. Although China domestic companies have price advantage, the application is narrow to some extent due to the poor manufacture processing, cheap raw material and less diversity of products.
The leading companies own the advantages on better performance, more abundant product’s types, better technical and impeccable after-sales service. Consequently, they take the majority of the market share of high-end market.
Since the year 2017, due to the price rocket climbing of raw materials and the more and more strictly environment policy, the product price mark a huge growth rate. Some small producers in China had to stop production, and make the market supply very tightly, the big ones now have backlog of orders, and they take the export orders and large clients’ orders first. This situation will maintain for a few months and get improve in the year of 2019.
Company mergers and acquisitions, and companies’ cooperation have occurred for development and growth. As the downstream consumption usually follows with developed and rapid economic growth areas, such as BRICS, the developed areas’ company prefers investing to underdevelopment regions these years.
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