The European Carbon and Graphite Association (ECGA) is closely monitoring the evolving geopolitical situation in the Middle East and its potential implications for global energy markets, logistics and industrial supply chains. These developments are a timely reminder of the vulnerabilities associated with external dependencies in critical industrial value chains.
Graphite electrodes are a critical input for electric arc furnace steelmaking and, therefore, a cornerstone of Europe’s transition towards more circular, clean, and lower-carbon steel production. However, the EAF route currently accounts for only around 45% of steel production in Europe, highlighting both the scale of the transition ahead and the importance of securing reliable access to critical inputs such as graphite electrodes. The sector relies on stable access to affordable energy, raw materials and efficient international transport routes.
Unfortunately, we are now witnessing how geopolitical instability is driving volatility in energy markets and global logistics.
This is placing additional pressure on the cost base and operating conditions of energy-intensive industries in Europe, with knock-on effects across the steel value chain.
Recent developments underline the need to strengthen Europe’s industrial resilience. Without a stable and competitive domestic base for key inputs such as graphite electrodes, Europe risks increasing its exposure to external supply shocks at a critical moment for its clean industrial transition. Protecting this industrial base requires targeted measures to mitigate exposure to energy price shocks.
ECGA will continue to monitor developments closely and engage constructively with stakeholders. Member companies operate independently and determine their commercial policies individually, in full compliance with competition law.
Our message is pressing: No affordable energy → no graphite electrodes → no EAFs → no clean steel → no sustainable clean transition
