【Graphite Electrodes】Japan's Two Major GE Companies See Significant Sales Decline in Q2 2025

【Graphite Electrodes】Japan's Two Major Graphite Electrode Companies See Significant Sales Decline in Q2 2025

In the first half of 2025, Japan's graphite electrode industry faced significant challenges. According to the latest financial reports, the country's two major graphite electrode manufacturers, Resonac and Tokai Carbon, both experienced declines in sales volume and revenue, reflecting the impact of multiple pressures—such as sluggish global demand, overcapacity, and intensified price competition—on the industry.

01. Resonac: Sales Volume and Prices Fall, Losses Widen

Resonac announced that its graphite electrode sales revenue in the first half of 2025 was 37.1 billion yen, down sharply by 37% year-on-year. The company stated that this decline was mainly due to weakened global demand, especially the contraction in traditional export markets such as Europe and South Korea. In addition, low-price dumping by competitors from countries such as China has kept graphite electrode market prices under sustained pressure, further squeezing Resonac's profit margins. The company has not yet disclosed the specific amount of losses, but made it clear that "losses in the first half have further expanded compared to the same period last year."

02. Tokai Carbon: Lower Volume, Higher Efficiency, Profit Margin Turns Positive

In contrast, Tokai Carbon improved its profitability through product mix adjustments and cost control strategies. In Q2 2025, its graphite electrode sales revenue was 9.068 billion yen, down 3.36% quarter-on-quarter and 32.92% year-on-year. However, its net profit margin for the same period reached 2.7%, a significant improvement from -9.9% in the same period in 2024. The company pointed out that the improvement in profitability was mainly due to a drop in raw material prices (lower costs for key raw materials such as needle coke) and product mix optimization—gradually reducing the production of low value-added products and shifting toward high-power and ultra-high-power graphite electrodes. In addition, while the sale of its European subsidiary temporarily dragged down sales revenue, it will help concentrate resources on developing core businesses in the long run.

03.Global Overcapacity and Structural Adjustments

Analysts noted that the difficulties faced by Japanese graphite electrode companies are not isolated cases but a microcosm of the global industry trend. Since 2024, global graphite electrode capacity has continued to be in surplus, while China, through technological upgrades and scale expansion, has become the main supplier of low-priced products. For example, in the U.S. market, in June 2025, the average export price of Chinese graphite electrodes was only 17,000 yuan/ton, far lower than the prices from Russia, the UAE, and other countries, posing direct competitive pressure on Japanese companies. The European carbon border tax policy has further dampened steel demand in some regions, indirectly affecting the graphite electrode market.

In the face of these challenges, Japanese companies are seeking differentiated paths. Tokai Carbon plans to cut production by 10%-15% at four of its plants worldwide and accelerate its expansion into the new energy materials sector; Resonac is attempting to enter high-end graphite material markets for semiconductors and new energy batteries. Industry insiders believe that in the future, graphite electrode companies will need to pursue breakthroughs in high value-added products, green manufacturing, and regional market diversification to cope with the long-term pressures of the industry's consolidation period.

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