US: Graftech’s graphite electrode output rises 3% y-o-y, sales rise 14% in Q1CY’26
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- Realised selling price declines 5% y-o-y to around $3,900/t
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- Demand recovery expected to support volume growth in CY’26
GrafTech International, a leading global manufacturer of graphite electrode products, reported stronger operational performance in the quarter ended 31 March 2026 (Q1CY’26), with both sales and production volumes increasing y-o-y. However, weaker realised prices continued to pressure earnings despite the improvement in demand.
Production edges higher by 3% y-o-y as plant utilisation strengthens:
Production volume rose 3.2% to 29,400 tonnes (t) in Q1CY’26 from 28,500 t a year earlier. Production capacity remained unchanged at 45,000 t, while capacity utilisation improved to 65% from 63%, indicating better operational efficiency.
Sales accelerate with double-digit volume growth:
GrafTech’s sales volume increased 14% y-o-y to 28,100 t in Q1CY’26, compared with 24,700 t in Q1CY’25. The company attributed the growth primarily to stronger demand in the United States, supported by a favourable regional sales mix. Q-o-q, sales volumes were broadly stable, although comparable Q4CY’25 volume data was not disclosed.
Price erosion offsets benefits of higher shipments:
Despite stronger volumes, GrafTech’s weighted-average realised selling price declined 5% y-o-y to around $3,900/t, reflecting continued competitive pricing across key markets. To restore margins, the company is implementing price increases of $600-1,200/t on uncommitted volumes while prioritising higher-value regions and tightening cost controls.
Outlook: Demand recovery expected to support volume growth
GrafTech expects graphite electrode demand to improve gradually through 2026, backed by stable-to-improving steel production outside China and supportive trade policies in the United States. The company continues to target 5-10% y-o-y growth in graphite electrode sales volume this year, with more than 85% of its expected sales already secured through its order book. Alongside planned pricing actions and cost optimisation initiatives, GrafTech expects lower cash production costs and anticipates market conditions to improve as demand normalises.
