GrafTech International Ltd. Files Trade Petition in Brazil Over Allegedly Unfair Graphite Electrode Imports
GrafTech International Ltd. (NYSE: EAF), a global manufacturer of high-quality graphite electrode products used in electric arc furnace steelmaking and other metallurgical processes, has announced that it has filed a formal trade petition with Brazilian authorities requesting an investigation into the pricing practices of graphite electrode imports from Asia. The company alleges that graphite electrodes produced in China and India may be entering the Brazilian market at unfairly low prices, potentially harming domestic industry.
The petition was submitted to the Department of Trade Defense (DECOM), a division of the Foreign Trade Secretariat that operates within Brazil’s Ministry of Development, Industry, Trade, and Services. DECOM is responsible for reviewing and investigating potential trade violations, including dumping practices that can distort competition and damage domestic manufacturing sectors.
According to GrafTech, the petition seeks to determine whether exporters from China and India are selling graphite electrodes in Brazil at prices significantly below their fair market value. Such pricing practices—commonly referred to as dumping—can create an uneven competitive environment by undercutting domestic manufacturers and discouraging investment in local production capabilities.
Investigation Officially Launched
Following the filing of the petition, DECOM announced on March 11, 2026 that it had formally opened an investigation into the matter. The probe will examine whether graphite electrode imports from China and India have been sold in Brazil at dumping prices and whether those imports have caused or threaten to cause material injury to Brazil’s domestic graphite electrode industry.
As part of the investigation’s initial stage, DECOM conducted a preliminary review of available evidence submitted with the petition. The agency’s early analysis suggested that there may indeed be significant dumping margins associated with imports from both countries. According to the agency’s preliminary assessment, dumping margins could reach as high as 54.9 percent for graphite electrode shipments originating in China and approximately 57.3 percent for those exported from India.
While these figures are preliminary estimates and subject to further review, they were sufficient for DECOM to conclude that a full investigation is warranted. The investigative process will involve a detailed analysis of export pricing, production costs, trade volumes, and market conditions, along with submissions from exporters, importers, and other stakeholders in the supply chain.
The scope of the investigation specifically covers graphite electrodes with diameters equal to or greater than 350 millimeters. These large-diameter electrodes are widely used in electric arc furnace (EAF) steelmaking, a process that relies heavily on graphite electrodes to conduct electricity into the furnace and generate the intense heat required to melt scrap steel and other metal inputs.
Importance of Graphite Electrodes in Steel Production
Graphite electrodes play a critical role in modern steel manufacturing, particularly in electric arc furnace production, which has become increasingly important in global steelmaking due to its flexibility and lower carbon emissions compared to traditional blast furnace methods.
Electric arc furnaces use powerful electric currents to generate temperatures high enough to melt scrap steel and other metallic materials. Graphite electrodes serve as the conductive components that deliver electricity into the furnace, making them an essential input for steel producers.
Because of their importance to steelmaking operations, disruptions in the graphite electrode supply chain—or pricing practices that undermine domestic manufacturing—can have far-reaching consequences for the broader industrial ecosystem.
According to the World Steel Association, Brazil produced approximately 33.3 million metric tons of crude steel in 2025. This level of output ranks the country among the world’s top steel producers, placing it ninth globally. The scale of Brazil’s steel industry highlights the strategic importance of a reliable and competitive graphite electrode supply.
Industry participants emphasize that fair market pricing is essential to ensuring stable access to graphite electrodes while preserving domestic production capabilities. Without a level playing field, local manufacturers may struggle to compete with imports priced below sustainable market levels.
GrafTech’s Presence in Brazil
The petition was filed on behalf of GrafTech’s Brazilian subsidiary, GrafTech Brasil Participações Ltda. The subsidiary operates manufacturing and service facilities in Candeias, located in the northeastern state of Bahia.
GrafTech has maintained operations in Brazil for more than five decades, making it one of the longest-standing participants in the country’s graphite electrode industry. Over the years, the company has developed local manufacturing expertise, technical support capabilities, and close partnerships with steel producers operating electric arc furnaces.
Today, GrafTech positions itself as the only large-scale graphite electrode manufacturer with both production and service operations within Brazil. This presence allows the company to provide local supply reliability and technical assistance to steel producers across the region.
The company argues that protecting fair competition in the Brazilian graphite electrode market is essential not only for its own operations but also for the broader steelmaking ecosystem that depends on reliable domestic supply.
Commitment to Fair Trade
Timothy Flanagan, President and Chief Executive Officer of GrafTech, emphasized the company’s longstanding commitment to Brazil and its industrial development.
“We are proud of our long-standing presence in Brazil and the capabilities we have built to support customers in the region,” Flanagan said in a statement. “This petition reflects our commitment to ensuring a level playing field for the graphite electrode industry in Brazil and supporting the long-term viability of our operations and customers in the country.”
Flanagan also expressed confidence in the Brazilian government’s trade investigation process, noting that the company believes authorities will conduct a thorough review of the evidence presented.
“We are confident that DECOM will conduct a comprehensive investigation and take appropriate action if unfair trade practices are identified,” he added.
Potential Outcomes of the Investigation
Trade investigations of this nature typically unfold over several stages. After initiating the probe, authorities gather additional data from exporters, importers, domestic manufacturers, and other industry stakeholders. The investigation may also include public hearings, written submissions, and verification of company-provided information.
If the investigation ultimately determines that dumping has occurred and that it has caused harm to domestic industry, Brazil may impose anti-dumping duties on imports of graphite electrodes from the countries under investigation. These duties are designed to offset the price advantage created by dumping and restore fair competition in the market.
Such measures are widely used in global trade policy as a mechanism for addressing unfair pricing practices. However, final determinations are based on extensive evidence and may take many months to complete.
Implications for the Steel Industry
The outcome of the investigation could have important implications for Brazil’s steel industry and its supply chain partners. Electric arc furnace operators rely heavily on graphite electrodes, and pricing dynamics can significantly affect operating costs.
At the same time, maintaining domestic manufacturing capacity for critical industrial inputs such as graphite electrodes is often viewed as strategically important. Local production can reduce reliance on imports, provide supply chain resilience, and support technological expertise within the country.
For companies like GrafTech, the investigation represents an effort to ensure that international competition occurs under fair market conditions rather than through pricing practices that undermine sustainable production.
As the investigation moves forward, Brazilian authorities will continue gathering information from all parties involved. Exporters from China and India will have opportunities to present evidence defending their pricing practices, while domestic producers and other stakeholders will provide additional data regarding market impacts.
For GrafTech and the broader graphite electrode industry, the investigation marks a significant step toward addressing concerns about pricing fairness and competitive balance within Brazil’s industrial market.
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