GrafTech International Ltd. (EAF): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at EAF navigating a tough steel market in late 2025, and honestly, their strategy is all about disciplined margin defense, not just chasing volume. We see them aggressively shifting their Place strategy, evidenced by US sales volume jumping 53% year-over-year in Q3, while their Price team is pushing for a 15% increase on uncommitted 2025 volume to widen the gap against a tight cost structure where their realized price of about \$4,200 per metric ton barely outpaces the projected \$3,860 per MT cost of goods sold. I've mapped out exactly how their core Product-UHP graphite electrodes-and their Promotion focus on cost control define this balancing act, so check out the full breakdown of their four P's below.

GrafTech International Ltd. (EAF) - Marketing Mix: Product

GrafTech International Ltd. manufactures high-quality graphite electrode products, the massive, conductive columns used to generate the heat required to melt scrap metal in an Electric Arc Furnace (EAF).

Ultra-High Power (UHP) graphite electrodes for Electric Arc Furnace (EAF) steel production

The core offering is Ultra-High Power (UHP) graphite electrodes, a non-negotiable consumable for EAF steelmaking, which supports the steel industry's shift toward decarbonization.

• Q3 2025 sales volume reached 28.8 thousand MT.
• Q3 2025 sales volume represented a 9% year-over-year increase.
• Q1 2025 sales volume was 24.7 thousand MT, a 2% year-over-year growth.
• Production volume for Q3 2025 increased 37% compared to Q3 2024.
• Production volume for Q1 2025 was 28.5 thousand MT, a 10% increase year-over-year.
• For the nine months ended September 30, 2025, sales from Graphite Electrodes totaled $353.6 million.
• Cash cost of goods sold per metric ton (MT) saw a 10% reduction in Q3 2025 compared to Q3 2024.
• The company expects a mid-single digit percentage point decline in cash cost of goods sold per MT for the full year 2025 compared to 2024, aligning with a long-term expectation of approximately $3,700 per MT.

The following table summarizes key operational metrics for the first three quarters of 2025:

Key product differentiation is substantial vertical integration into petroleum needle coke

GrafTech International Ltd. maintains a competitive advantage as the only large-scale graphite electrode producer substantially vertically integrated into petroleum needle coke, the key raw material, via its Seadrift facility in Texas.

• The company received approval in May 2024 for a permit to significantly expand production capacity at the Seadrift facility.
• The projected needle coke supply based on Seadrift production capacity is estimated at 140 thousand MT.

Petroleum needle coke is also sold, with potential demand from lithium-ion battery production

The petroleum needle coke produced is also sold externally, with growing demand driven by the electric vehicle market for use in lithium-ion batteries.

• The global needle coke market is projected to be valued at USD 4.58 billion by 2025.
• The super premium grade of needle coke, critical for UHP electrodes and battery anodes, is expected to register a Compound Annual Growth Rate (CAGR) of 5.1% from 2025 to 2035.
• The lithium-ion battery application segment for needle coke is expected to expand at a CAGR of 6.4% through 2025 to 2035.

Products support the global steel industry's shift toward decarbonization via EAF technology

The graphite electrodes are essential for EAF steelmaking, which is inherently more sustainable than traditional methods, positioning GrafTech International Ltd. to benefit from long-term decarbonization trends.

• Global steel production excluding China reached 206 million tons in Q3 2025, up from 203 million tons in Q3 2024.
• Steel capacity utilization rates globally (excluding China) remained at 66% in Q3 2025.
• The U.S. market maintained a stronger capacity utilization rate of 78% in Q3 2025.

GrafTech International Ltd. (EAF) - Marketing Mix: Place

You're looking at how GrafTech International Ltd. (EAF) gets its specialized graphite electrodes and petroleum needle coke products to the industrial customers who need them, which is all about logistics and strategic location.

GrafTech International Ltd. (EAF) maintains an integrated global manufacturing network designed for efficient supply across key steel-producing regions. This physical footprint is central to their Place strategy.

The company has made a deliberate strategic shift to concentrate its sales efforts where pricing dynamics are more favorable, specifically targeting the United States market. This geographic mix adjustment is a key lever for improving order book quality and margin resilience in a challenging pricing environment.

The results of this geographic focus are evident in the latest volume statistics. For the third quarter of 2025, sales volume in the United States surged by 53% year-over-year. Year-to-date through September 30, 2025, U.S. sales volume growth was 39% year-over-year. This strong domestic performance contrasts with overall market demand, as total sales volume for the third quarter of 2025 grew 9% year-over-year to 28.8 thousand MT.

GrafTech International Ltd. (EAF) manages product distribution through a multi-channel approach to ensure broad market coverage and specialized customer service. The structure involves:

• Direct sales force for key accounts and strategic relationships.
• Independent sales representatives for broader market penetration.
• Distributors to manage localized inventory and smaller volume needs.

The company is executing against a full-year 2025 sales volume increase expectation of 8-10%, reflecting continued market share gains driven by this Place strategy. Furthermore, the company ended the third quarter of 2025 with total liquidity of $384 million, which supports maintaining strategically positioned inventories across key geographies to meet customer needs reliably.

GrafTech International Ltd. (EAF) - Marketing Mix: Promotion

You're looking at how GrafTech International Ltd. communicates its value in a tough market, which is where promotion really shows its stripes. The messaging isn't about flashy ads; it's about demonstrating financial discipline and strategic positioning to an audience that cares deeply about stability and future growth, namely investors and key customers.

Investor relations focus on cost reduction and volume recovery to signal financial stability.

The promotion narrative to the financial community centers on tangible progress against operational headwinds. Management consistently highlights the success of cost-saving initiatives as a primary driver for signaling financial health, even when top-line pricing is soft. For instance, the cash cost of goods sold per metric ton saw a 13% year-over-year decline in the second quarter of 2025. This performance led to an improved full-year 2025 cash COGS guidance, now targeting a 7% to 9% year-over-year decline, with a midpoint estimate around $3,950 per metric ton. On the volume front, the company is successfully recovering share; year-to-date through Q2 2025, sales volume was up 7% compared to 2024, putting them on track for a 10% increase for the full year. This volume recovery is framed as a direct result of their strategy, leading to a cumulative sales volume growth of approximately 25% since the end of 2023. Even with a net loss of $28 million in Q3 2025, the strong liquidity position of $384 million and positive adjusted free cash flow of $18 million in that same quarter are key promotional points for stability.

Here are some key financial metrics used to promote stability:

• Q2 2025 Adjusted EBITDA: $3 million
• Q1 2025 Cash COGS/MT reduction YoY: 21%
• Q3 2025 Sales Volume: nearly 29,000 metric tons
• Full-Year 2025 Sales Volume Growth Target: 8% to 10%
• Q2 2025 Cash COGS/MT Decline YoY: 13%

Commercial strategy emphasizes a compelling customer value proposition over volume-for-volume's sake.

GrafTech International Ltd. promotes its product not just on price, but on the value delivered beyond the electrode itself. The core of this message rests on pillars like unmatched technical capabilities, specifically their architect furnace productivity system, and world-class customer technical services. This value proposition supports their push for better pricing, as they informed customers of an intention to increase prices by 15% on uncommitted 2025 volumes. The success of the geographic mix shift is a major promotional theme, as the U.S. remains the strongest region for pricing. For example, U.S. sales volume grew 53% year-over-year in Q3 2025. This strategic shift is working to improve the realized price; the average selling price for Q2 2025 was approximately $4,200 per metric ton, representing a 2% sequential increase over Q1 2025.

The company uses specific performance data to back up its value claim:

Management is making a defintely disciplined decision to walk away from unacceptably low-margin volume opportunities.

This discipline is communicated by adjusting volume expectations based on margin quality, not just volume quantity. Management revised its full-year 2025 sales volume guidance to an 8% to 10% increase, a slight moderation from the prior 10% target. This adjustment is explicitly linked to the decision to forego volume where margins are unacceptably low. The focus is on improving the quality of the order book, which is supported by the fact that U.S. and EU sales together accounted for >50% of volume/revenue as of Q1 2025.

Leveraging the macro trend of EAF steelmaking growth in North America and the EU.

A key part of the forward-looking promotion involves tying GrafTech International Ltd.'s success to the structural shift in the steel industry. The company points to data showing the EAF method of steelmaking accounted for 51% of steel production outside of China in 2024. In the U.S., this trend is translating into tangible capacity expansion, with over 20 million tons of new EAF capacity either online or planned. GrafTech International Ltd. promotes its market share gains in these key regions as proof it is capitalizing on this trend. For instance, Western Europe volume grew >40% year-over-year in Q1 2025.

The company's promotion highlights its alignment with this macro trend:

• EAF steelmaking share outside China (2024): 51%
• New U.S. EAF Capacity (Online or Planned): Over 20 million tons
• Western Europe Volume YoY Growth (Q1 2025): >40%
• U.S. Market Share Gain (Q1 2025 YoY): ~25% volume increase

Finance: draft 13-week cash view by Friday.

GrafTech International Ltd. (EAF) - Marketing Mix: Price

You're analyzing the pricing strategy for GrafTech International Ltd. (EAF) as of late 2025. The amount customers pay is directly tied to the perceived value, but it's also a battlefield against global competition. The company is actively managing realized prices against a backdrop of declining costs and targeted increases.

The weighted-average realized price for the third quarter of 2025 stood at approximately $4,200 per MT. This figure was flat compared to the second quarter of 2025, but it represented a 7% decrease year-over-year, reflecting the roll-off of older, higher-priced long-term sales agreements (LTAs) and ongoing market dynamics. To counter this, the shift in geographic mix, specifically toward the United States, provided a positive lift to the average selling price (ASP) by over $120 per metric ton in Q3 2025.

Management is executing a clear cost-reduction plan, which directly impacts the floor for pricing decisions. The full-year 2025 cash cost of goods sold (COGS) is projected to be approximately $3,860 per MT, which reflects a targeted 10% year-over-year decline. This cost performance is strong; for instance, the cash COGS per metric ton in Q3 2025 was $3,795, marking a 10% year-over-year reduction.

To improve margins, GrafTech International Ltd. (EAF) management is pursuing a specific action on future business. They reiterated their intention to implement a 15% price increase on all uncommitted 2025 volume. This move is a necessary step to restore profitability to levels that support future investment, given the current environment.

The pricing power GrafTech International Ltd. (EAF) can exert is constrained by external factors. Persistent competitive pressures remain a primary headwind, especially from low-priced graphite electrode exports originating from China. This competitive landscape necessitates a disciplined approach to order acceptance, with management walking away from low-margin opportunities to protect the overall pricing quality.

Here is a quick look at the key pricing and cost metrics as of the latest reported quarter:

The strategy to combat low absolute pricing involves several levers:

• Shifting sales volume mix toward the U.S. region.
• Declining low-margin business opportunities.
• Executing structural cost reductions across operations.
• Implementing targeted price increases on new volume.

The realized price of $4,200 per MT in Q3 2025 was supported by a geographic mix benefit of over $120 per metric ton. Still, the overall pricing environment requires the cost structure to improve significantly; the full-year 2025 cost target of $3,860 per MT is critical to bridging the gap left by competitive pricing.