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Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the GrafTech Third Quarter 2025 Earnings Conference Call and Webcast. [Operator Instructions] I would now like to turn the conference over to Mike Dillon, Vice President of Investor Relations. You may begin.

Thank you, Desiree. Good morning, and welcome to GrafTech International's Third Quarter 2025 Earnings Call. On with me today are Tim Flanagan, Chief Executive Officer; and Rory O’Donnell, Chief Financial Officer. Tim will begin with opening comments, including an update on the commercial environment. Rory will then provide more details on our quarterly results and other financial matters, and Tim will close with additional comments on our outlook. We will then open the call to questions. Turning to our next slide. As a reminder, some of the matters discussed on this call may include forward-looking statements regarding, among other things, performance, trends and strategies. These statements are based on current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from those indicated by forward-looking statements are shown here. We will also discuss certain non-GAAP financial measures, and these slides include the relevant non-GAAP reconciliations. You can find these slides in the Investor Relations section of our website at www.graftech.com. A replay of the call will also be available on our website. I'll now turn the call over to Tim.

Good morning, and thank you for joining GrafTech's third quarter earnings call. Today, we'll provide an overview of our third quarter performance, share key operational and commercial updates and discuss our outlook for the remainder of 2025 and beyond. I'm pleased to share that GrafTech delivered another quarter of meaningful progress in the third quarter of 2025, reflecting our team's commitment to disciplined execution and operational excellence in a challenging market environment. During the quarter, we achieved 9% year-over-year increase in sales volume, reaching nearly 29,000 metric tons. To achieve this, we are actively leveraging our strong customer value proposition and capitalizing on the commercial momentum we have built to expand our market share and drive continued volume growth. In fact, reflecting our full revised full year 2025 sales volume guidance that Rory will speak to in a few moments, we are on track to achieve cumulative sales volume growth of over 20% since the end of 2023. This is impressive growth in any market, but is particularly noteworthy given that graphite electrode demand has remained relatively flat for the past 2 years. It's a clear indication that our customer value proposition is compelling and we're outperforming the broader market. In addition, we continue to focus on optimizing our geographic sales mix, particularly in the United States, where our sales volume grew by 53% year-over-year in the third quarter. This strategic shift towards the U.S. market, which remains the strongest region for graphite electrode pricing is a direct result of our efforts to capture opportunities in regions with more favorable pricing dynamics and to strengthen our competitive position. On the cost side, we delivered a 10% year-over-year reduction in our cash cost per metric ton for the third quarter and increased our full year guidance for cost reductions, as Rory will discuss. As a result, for the full year of 2025, we're on track for more than a 30% cumulative reduction in our cash cost per metric ton since the end of 2023. This achievement underscores our ability to control our production costs and adapt our operations to varying levels of demand. Regarding profitability, we generated positive EBITDA adjustment -- positive adjusted EBITDA of $13 million for the quarter. We also generated $25 million in net cash from operating activities and $18 million in adjusted free cash flow, further strengthening our liquidity position to $384 million as of the end of September. This cash flow performance and ending liquidity position exceeded our expectations for the third quarter. While we're encouraged by these reported results, and as we previously noted, we'll never be satisfied with this level of performance. Yet we view this as a further demonstration of growing momentum and that these are constructive advances in the right direction, providing a solid platform to build upon as the market recovers. Turning to the next slide. Let me provide our current thoughts on the broader steel industry. On a global basis, steel production outside of China was approximately 206 million tons in the third quarter of 2025, up nearly 2% compared to the third quarter of last year, resulting in a global utilization rate for the third quarter of approximately 66%. On a year-to-date basis, global steel production outside of China is relatively flat. Looking at some of our key commercial regions using data published by the World Steel Association earlier this week. For North America, steel production was flat year-to-date compared to the prior year. Specific to the U.S., World Steel reported that on a year-to-date basis, steel production grew 2% compared to 2024. In the EU, steel output decreased 4% year-to-date compared to the same period in 2024 and remains well below historical levels of steel production and utilization for that region. Although the overall steel sector is still experiencing short-term challenges, however, early indications of a rebound in the steel markets have started to appear, and recent developments have provided additional reasons for encouragement. Earlier this month, World Steel published their most recent short-range outlook for steel demand. For the U.S., World Steel is projecting a 1.8% steel demand growth in 2026 behind a number of factors including pent-up demand for residential construction and easing financing conditions, while favorable trade policies will support domestic steel production. In Europe, World Steel is projecting a return of steel demand growth in the near term, forecasting demand growth of 3.2% for 2026. This reflects some of the demand drivers we have discussed previously, including initiatives to increase investment in infrastructure and defense spending, representing key steel-intensive industries. To further support the European steel industry, earlier this month, the European Commission announced new trade protection measures that should drive higher levels of production in this key region for GrafTech. Specifically, the measures when effective next year, will cut steel import quotas by 47%, significantly increased the out-of-quota tariffs and introduce melt and pour provisions prevent circumvention. These measures are in addition to the provisions within the Carbon Border Adjustment Mechanism or CBAM that is expected to provide further support to the EU steel industry once implemented at the beginning of 2026. These developments are a structural positive for the EU steel industry with some analysts projecting the trade projections to drive the steel imports lower by more than 10 million tons on an annualized basis. This alone could drive EU steel capacity utilization rates, which have averaged just over 60% for the past couple of years to nearly 70%. Finally, on a global basis, World Steel is projecting global steel demand outside of China to grow 3.5% year-over-year based on many of the same factors, a further easing of geopolitical tensions and improved macroeconomic conditions could support further growth. Against that backdrop, we are having active and ongoing dialogue with our customers on their needs for the upcoming year. While it's too early in the process to draw any conclusions, our compelling customer value proposition positions us well to continue the share gains we've achieved over the past 2 years, including further market share growth in the United States. At the end of the day, we're unwavering in our commitment to serve our customers with excellence and be the most trusted value-added supplier of high-quality graphite electrodes. Consistent with our focus on nurturing long-term partnerships built on performance, reliability and mutual success. We look forward to sharing more on our 2026 outlook during our year-end call. Before turning the call over to Rory, I want to sincerely thank our entire team around the world for their remarkable efforts, resilience and commitment during this pivotal time. Their dedication continues to drive our progress and position us for long-term success. But most importantly, I want to thank our employees for their unwavering commitment to a culture of safety. This is a non-negotiable priority across the organization, and we're pleased to have maintained strong momentum in this area, putting us on track for our best safety performance in years. As we move through the end of the year and into next, sustaining and building on this momentum is a must and must remain a critical focus. Our ultimate goal is zero injuries, and we continue to work relentless toward that standard every single day. With that, let me turn the call over to Rory to provide more color on our commercial and financial performance.

Thank you, Tim, and good morning, everyone. Starting with our operations. Our production volume for the third quarter was approximately 27,000 metric tons, resulting in a capacity utilization rate of 63%, while representing a modest sequential decline in production compared to the prior 2 quarters. This was planned as annual maintenance activities at our European manufacturing facilities occurred during the third quarter, consistent with our historical practice. On a full year basis, our expectation remains to balance our production and sales volume levels. Turning to our commercial performance. In the third quarter, our sales volume was approximately 29,000 metric tons. This is a 9% year-over-year increase and represented our highest sales volume performance in 12 quarters. Of particular note is our success in actively shifting a significant portion of our volume to the U.S. as we have discussed. For Q3, our sales volume within the U.S. grew 53% year-over-year. Year-to-date, we have grown sales volume in this region by 39% compared to last year. This is an impressive result given year-to-date steel production in the U.S. is up less than 2%. On a full year basis, we now expect our total sales volumes to increase 8% to 10% in 2025. The modest change from our previous guidance of 10% year-over-year sales volume increase reflects our disciplined approach of foregoing volume opportunities where margins are unacceptably low. To this last point, we continue to face challenging pricing dynamics across nearly all of our regions. While this is partially attributable to flat market demand, it further reflects the increased level of low-priced graphite electrode exports from China and others that we have spoken to previously, which has resulted in an unsustainable level of excess electrode capacity in the rest of the world. Against that backdrop, at times, we are making decisions to walk away from certain commercial opportunities where we are not being adequately compensated for our value proposition. This is consistent with our commitment to a disciplined, value-focused growth, not volume for volume's sake. Expanding on the topic of price. Our average selling price for the third quarter was approximately $4,200 per metric ton, which represented a 7% decline compared to the prior year and sequentially was in line with the second quarter. The year-over-year decrease was largely driven by the substantial completion in 2024 of the higher-priced LTAs along with persistent challenges with market pricing that I just discussed. Our focus remains on mitigating these impacts in the near term, including the previously mentioned geographic mix shift towards the United States. Similar to all regions, average pricing in the U.S. is below 2024 levels, but it remains our strongest region for graphite electrode pricing. In fact, we estimate that the higher mix of U.S. volume boosted our weighted average selling price for the third quarter by over $120 per metric ton and by a similar amount on a year-to-date basis. As a result, when comparing our year-to-date weighted average price of approximately $4,200 per metric ton, to the non-LTA price of $3,900 we reported in the fourth quarter of last year, we saw an increase of nearly 8%. Despite the demand climate, our strong commercial progress highlights the effectiveness of our approach to engaging customers and demonstrates the significant benefits we provide them. Our value proposition is founded on several essential pillars. These include our unparalleled technical expertise associated with the architect furnace productivity system, which is further enhanced by the support of our exceptional customer technical service team. We also continue to make substantial investments in research and development, reinforcing GrafTech's leadership in graphite electrode and petroleum needle coke technology and innovation. Another distinguishing factor is our unique vertical integration into needle coke, ensuring a reliable supply of this crucial raw material. Additionally, our flexible and integrated global manufacturing network provides enhanced supply dependability, an increasingly significant benefit given the changing landscape of global trade regulations. Ultimately, we are dedicated to fostering and enhancing lasting customer relationships, aiming to provide mutual benefit and ongoing shared achievements for the long term. Turning to costs. For the third quarter, our cash costs on a per metric ton basis were $3,795, representing a 10% year-over-year decline. We continue to outperform our expectations in this area and are increasing our full year cost savings guidance. In response to our revised sales volume outlook, we have implemented additional measures to enhance the efficiency of our production schedules and further optimize production costs. We now anticipate an approximate 10% year-over-year decline in our cash COGS per metric ton for 2025 on a full year basis compared to our previous guidance of 7% to 9% decline. Achieving a full year 10% decline would translate into cash COGS per metric ton of approximately $3,860 for the full year. While this is above our year-to-date run rate, as we have noted previously, we will have periodic quarter-to-quarter fluctuations in our cash cost recognition as a result of timing impacts. However, we are pleased to be outperforming our initial expectations for the year and that our cost structure continues to trend in the right direction. Remarkably, achieving our full year cost guidance would represent a 30%, 2-year cumulative decline in our cash COGS per metric ton compared to the full year of 2023. Our teams continue to do extraordinary work in identifying and executing cost reduction opportunities across various components of our variable and fixed costs. Let me highlight a few examples. Drawing on our extensive experience in research and development, along with our commitment to innovation, we are consistently working to reduce the consumption of specific raw materials, all while maintaining the high standards of our product. By leveraging our recent investments in technology, we are able to lower our total energy usage. In addition, we are optimizing our production schedules to make the most of lower electricity rates available during off-peak periods. Our efforts to implement procurement initiatives have also yielded impressive results. Notably through broadening our supplier network, helping us to minimize our variable costs even further. Furthermore, our ongoing initiatives to reduce fixed costs have positively impacted our production costs while the higher volume has enhanced our fixed cost leverage. Lastly, our team continues to effectively manage the potential cost impacts caused by evolving global trade policymaking and specifically, the impact of U.S. tariffs. To expand on this point, as we have consistently noted, our integrated global production network gives us flexibility around where we can manufacture our products, allowing us to serve end markets efficiently and reliably. In addition, we maintained strategically positioned inventories across key geographies, allowing us to meet customer demand even in dynamic market conditions. As a result, we are well positioned to minimize the potential impacts imposed by current trade policies, and we continue to expect the impact of the announced tariffs to have less than 1% impact on our 2025 cost, which is reflected in our updated cash COGS guidance. Overall, through disciplined execution and a relentless focus on efficiency, we've made remarkable progress in driving down costs and enhancing the overall agility of our operations in order to control production costs at various levels of demand. Further, we are achieving all this while maintaining our dedication to product quality and reliability as well as upholding our commitments to environmental responsibility and safety. Turning to the next slide and factoring all of this in. For the third quarter, we had a net loss of $28 million or $1.10 per share. This compares to a net loss of $36 million, $1.40 per share in the prior year as the reduction of our costs more than offset the year-over-year decline in weighted average pricing. For the third quarter, adjusted EBITDA was $13 million compared to a negative $6 million in the prior year. As noted in our earnings release, our current quarter EBITDA included an $11 million non-cash benefit from recognizing previously deferred revenue following the resolution of a long-standing commercial matter. Turning to cash flow. We were pleased to report positive cash flow for the first time in 4 quarters. For the third quarter, cash provided by operating activities was $25 million, while adjusted free cash flow was $18 million, with both measures comparable to the prior year. Our positive third quarter cash flow reflected a favorable change in net working capital as was expected. Taking a step back, we had a $45 million built-in our net working capital through the first 6 months of the year, most notably driven by inventory as first half production exceeded sales volume. As we have previously noted, this was planned as we had intentionally built inventory in the first half of the year, reflecting one of our cost savings initiatives, which is to level load our 2025 production while balancing production and sales volume levels on a full year basis. As we unwind this inventory timing impact, our built-in net working capital through the first 9 months of 2025 was reduced to $14 million despite an $11 million working capital impact in the third quarter from the non-cash earnings related to the recognition of previously deferred revenue. With this strong working capital performance in the third quarter, on a full year basis, we remain on track for working capital to be favorable to our cash flow for 2025. This is being realized through a combination of production cost improvements and inventory management, while maintaining adequate safety stock of pins and electrodes. Overall, we continue to track ahead of our initial cash flow projections for 2025 and remain encouraged by our momentum in this area. Turning to the next slide and expanding on this point. We ended the third quarter with total liquidity of $384 million, consisting of $178 million of cash, $107 million of availability under our revolving credit facility and $100 million of availability under our delayed draw term loan. As a reminder, this untapped portion of our delayed draw term loan is available to be drawn until July of 2026, and our expectation remains to draw this residual ports prior to its expiration. As it relates to our $225 million revolving credit facility, which matures in November of 2028, we had no borrowings outstanding as of the end of the quarter. However, based on a springing financial covenant that considers our recent financial performance, borrowing availability under the revolver remains limited to approximately $115 million, less currently outstanding letters of credit, which were approximately $8 million as of the end of the quarter. Overall, we believe our strong liquidity position, along with the absence of substantial debt maturities until December of 2029, will support our ability to manage through near-term industry-wide challenges. In summary, our focused execution, operational discipline and strategic positioning are enabling us to deliver results today while building for a strong foundation for long-term growth. I am proud of the progress we have made, and I am confident in our ability to continue creating value for our customers, our shareholders and all of our stakeholders. To that end, I would like to echo Tim's sentiments and extend my gratitude for the outstanding commitment and hard work demonstrated by our team members worldwide. I will now turn the call back to Tim for some final comments on our outlook.

Thanks, Rory. In summary, we laid out a disciplined plan in response to evolving industry dynamics and heightened macro uncertainty, and we're executing against that plan. Our objectives are clear and include to increase our sales volume and gain market share, improve our average pricing, most notably by shifting the geographic mix of our volume to higher-priced regions, to reduce costs and working capital requirements and to ultimately improve our liquidity and strengthen our overall financial foundation. As it relates to our third quarter, we're pleased that our efforts across all of these areas are beginning to translate into improved bottom line performance. This reflects signs of progress and momentum towards accelerating our path back to normalized levels of profitability as the market recovers. To this last point, I spoke earlier here to a number of potential catalysts to support a rebound of the steel market in the near term. Longer term, we remain bullish on the structural tailwinds that support the ongoing shift towards electric arc furnace steelmaking. Globally, based on data published by the World Steel Association, the EAF method of steelmaking further increased its market share in 2024, accounting for 51% of steel production outside of China. This is a continuation of the steady share growth that the EAF industry has experienced for a number of years. And driven by decarbonization efforts, we expect this trend to continue. In the U.S., which produces approximately 80 million tons of steel annually, over 20 million tons of new EAF capacity has either recently come online or is planned for the coming years, with further announcements expected as we move ahead. This will drive further share gains for electric arc furnace steel production in this key region. In the EU, while some European steelmakers have announced temporary delays in their EAF transition plans, other projects continue to move forward, and we continue to expect a meaningful mix shift towards EAF steelmaking within the EU in the medium to longer term. Further, with graphite electrode inventories remaining at low levels in Europe, an increase in European EAF steel production should lead to an outsized increase in graphite electrode demand. Given the expected growth in demand and tariff protections impacting certain foreign graphite electrode producers, the U.S. and the EU remain important strategic regions for GrafTech for the long term. With our strong commercial momentum in these regions and our focus on meeting the evolving needs of our customers, we are well positioned to capitalize on this demand growth. Expanding briefly on the topic of trade protection. We are continuously assessing a range of potential tariff outcomes and how those scenarios could influence steel industry trends and shape the commercial environment for graphite electrodes and more broadly synthetic graphite. Speaking to the U.S, we are encouraged by the steps that the administration is taking to create a more level playing field from a trade perspective and to protect critical industries. As it relates to the steel industry, with the expanded Section 232 tariffs that have been implemented on steel imports into the U.S., we continue to expect these tariffs will be stickier than the broader tariff programs that have continued to evolve. As it relates to critical minerals, which includes synthetic graphite made from petroleum needle coke, we expect to see growing demand in this market driven by the growth in the EAF steelmaking and the building of western supply chains for battery needs, whether for electric vehicles or energy storage applications. However, the establishment of those western supply chains from raw material manufacturer through to the OEMs remains in early stages, and we're operating in an industry that is suffering from overcapacity in China. Against this backdrop of market dominance, earlier this month, China announced expanded export controls on synthetic graphite. While it remains too early to assess the longer-term impact of these measures, we believe that the potential for international trade disruptions further highlights the strategic importance of the West, reducing its reliance on China for critical minerals such as synthetic graphite to accelerate the development of the domestic supply chain with the support of policy making. To that end, earlier this year, the Department of Commerce announced preliminary anti-dumping tariffs of 93.5% being imposed on graphite active anode material imports from China. This stacks on top of previously announced tariffs resulting in a combined tariff of 160% on Chinese anode material imported into the U.S. While further policy measures will be needed, we welcome this important development, which, along with recent announcements related to initiatives on sourcing of rare earth and other critical minerals, demonstrates a strategic intent on the part of the U.S. government to foster an ex-China supply chain for these key materials. As it relates to GrafTech, given the fluid nature of global trade policy, and the heightened attention on critical minerals, we are taking proactive measures that seek to minimize the risk to GrafTech, capitalize on emerging opportunities and promote fair trade in their key markets. All of this is consistent with our approach on advocating for ourselves in order to optimally position GrafTech and its stakeholders for long-term success. In closing, this is a pivotal time for GrafTech. We made tremendous progress on our strategic initiatives, and that progress gives us confidence. We are in a strong position to benefit from the long-term structural trends that are set to shape the future of our industry. As a result, we're energized by the opportunities that lie ahead. We remain fully committed to executing our strategy, delivering value for our customers and driving long-term sustainable growth for our stakeholders. This concludes our prepared remarks. We'll now open the call for questions.

[Operator Instructions] And our first question comes from the line of Arun Viswanathan with RBC Capital Markets.

So I guess, first off, I guess -- do we -- should we expect any other kind of deferred revenue benefits? Or what did that arise from? And is that kind of onetime in nature, I guess, first off?

This is Rory. You should not expect any further. I mean, we don't have anything deferred left on the balance sheet. You'll note that in the upcoming disclosures in our SEC filings. So consider it one-time, it relates to long since collected receivable that is no longer going to impact -- or the results going forward.

Sure. And then just on kind of price and volume. So your average price came in a little bit lower than what we were thinking. Mainly that was maybe our own kind of mismatching of your contract roll-offs. But I guess, what do you guys think about the current kind of demand and price environment? It does appear that utilization rates are still kind of globally at a point that wouldn't necessarily support higher electrode pricing? Or maybe you can just comment on that? And if you need to weave in some thoughts on needle coke and how that's progressing as well, that would be helpful?

Yes, Arun, I'll start by saying I'm going to be careful about talking too much about pricing. Certainly, anything forward-looking just given the fact that we're in the middle of our negotiations with customers, both in the U.S. and Europe and globally right now. But I mean, I think we commented quite a bit about this in the second quarter call. I mean it's an oversupplied market right now. And so therefore, that makes it challenging to push pricing in such a market. That being said, I think you're starting to see some positive momentum across the steel industry and whether that's because of infrastructure and defense spending in Europe, whether it's because of trade actions that have been ongoing for now more than 6 or 7 months in the U.S. and recently announced in Europe. I think we're starting to see some momentum where we expect not only steel demand, but also steel production to predict -- to pick up in those regions. So all in all, it still remains a challenging market, but I think we're still optimistic that we'll start to see some more positive momentum on the pricing side as we look out going forward. And certainly, to the longer term, I think we still firmly believe that you're going to see a big influx of additional EAF production I commented on the 20 million tons or so that we're seeing in the U.S. right now already. As it relates to needle coke, needle coke continues to remain relatively flat from an overall pricing perspective globally. And I think, again, that's a reflection of where the electrode market is right now. I think the trade case that you're seeing play out right now in the Department of Commerce against the active anode material in China. The 93.5% tariff rate that we mentioned that will be finalized depending on when the government reopens, Q1 of next year, I think that will start to underpin and give all of the producers of anode material more confidence to continue to invest in their projects. And I think that will continue to support the overall demand for needle coke, and you'll start to see that market tighten up and pricing improve, and that will have a knock-on effect into the electrode market. So it's where we are today, and I think greener pastures ahead as we look out into the future.

Great. And then if I could just ask on the idea of supplying into the battery-related materials market. I guess you just mentioned that the market is oversupplied for electrodes. So I guess, is there any way to accelerate the commercial applications? Where are you on that timeline? And we've been in an oversupplied market on electrodes for a while now. So is there any limitations to moving forward to pivot some of your portfolio into that market as well? I think our understanding is that you guys have maybe 180,000 tons plus of capacity and maybe 130,000 tons is used in electrodes. So there does appear to be some latent capacity that you maybe you could direct into that market. What's taking this long? And where are you kind of in that journey?

Yes. No, I think that's a fair question, and I think consistent with what we've said in the past. We continue to develop our capabilities. I think where we have a distinct advantage to the market right now is the vertical integration with Seadrift and the ability to supply needle coke and raw materials into that market. As you noted, there is excess graphitization capacity, both in the U.S. and the EU, given that we're operating at roughly 60% to 65% utilization rates. But to be able to maximize that, you need to have batteries being produced by those that want to be non-Chinese suppliers in those regions, right? And right now, all of the battery material continues to be supplied by the Chinese, which is why that trade case is so critically important to allow those that want to have broader aspirations of producing anode material, establishing battery factories in the U.S. and the EU to be able to support their financing activities and make a market that otherwise is competitive and constructive for them. We've said all along that we don't see ourselves as a stand-alone add-on producer. We're somewhat balance sheet constrained from that standpoint. But I think that we would be a good partner for someone who's looking for raw material supply and/or someone who's looking for interim bridge supply of graphitization capability and/or graphitization expertise given that, that's what we do. So we think there's still opportunities out there. But that market is still developing, and it will take some time. I think the finalization of the trade case next year will be an important milestone to start to see that market unlock itself somewhat. And I think we're still pretty optimistic not only just because of batteries for EVs, but probably equally and almost more importantly is energy storage systems as we look forward on the electricity needs that the world is going to face here, which has been a very popular topic of late.

Our next question comes from the line of Bennett Moore with JPMorgan.

Congrats on the solid quarter. I wanted to start quick on the 50% tariffs on India material. I think those have been in place since August. Have you seen any material impact on imports into the U.S. as a result? And do you think these tariffs could help drive share gains or some of your conversations regarding 2026 commitments?

Yes. Again, I think we're confident, as we said, that we will continue to see gains in the U.S. I think we have a full expectation that we'll continue to grow volume in whole or in total as we head into next year, but we'll continue to focus a lot of energy into the U.S. market. Really, again, as a market that I think customers recognize the value proposition, the technical services, and all of the capabilities we bring to the table. So certainly do think that, that remains an opportunity for us. With respect to the Indian tariffs, right? I think -- that presents an opportunity in the market, right? I think certainly, anybody facing a 50% tariff is going to have a hard time overcoming that economic hurdle and should be supportive for negotiations as we head into those negotiations here in the fourth quarter. And maybe I'll take an opportunity to step back and editorialize a little bit, right? I mean I think both the Chinese and the Indians have really overbuilt their electrode capacity to multiples and multiples greater than their domestic EAF consumption could ever reach and I think if we look back to 2022, the Indians are exporting almost 60% more material than they did then. They've lowered their prices by 40%, the Chinese have lowered their prices by more than 30%. And I think a combination of those reasons and the ongoing war in Russia and the financing of that war through the purchasing of oil as well as the supply of electrodes into the Russian market, really, to me, is a strong reason and basis or justification for keeping those tariffs in place and hope that they don't just become a bargaining chip as the Trump administration works to settle out the trade disputes that are ongoing. So it's an opportunity for us, but certainly look forward to the negotiations here in the fourth quarter with that as a backdrop.

That's great color. And then my last follow-up here is regarding some commentary last quarter, you discussed GrafTech being an attractive candidate for public-private partnership. Since then, we've seen some additional deals unfold, including government entities, providing financial support for the graphite industry. So just wondering if GrafTech's had any sort of new engagement on this front since last quarter?

Yes. Thanks for that question, Bennett. I think you really need to take a step back and think about the work that the government is doing on critical minerals as well as trade policy and take that all into consideration as we think about how we promote a strong and domestic industrial base and in particular, steel making, right? I mean 70% of this deal in the U.S. is made via the EAF. 50% of steel in Europe is made via EAF. You can't produce that steel without electrode. So it's really important that not only are we protecting the steel and the downstream industries for steel, but we also have to think about the supply chains and the base that supports the steel industry, and we really need to see a healthy electrode industry to support that. As we think about what's going on and some of the announcements that you mentioned, we said this on the second quarter call and still stand by it that we're really applauding what the Trump administration is doing on that front and what the Department of War is doing to support the development of critical mineral supply chains, both in the U.S. and with its allies. We've talked about the 93%. So I won't go back down that path. But I think just this trade tit for tat that you're seeing between the U.S. and China around critical minerals really highlights kind of that importance, again, of creating that strategic supply chain. And I think synthetic graphite squarely fits into what the aim of that is. I think as it relates to GrafTech, I think we're uniquely positioned as a 139-year-old industry leader, technical innovator as well as being the only vertically integrated producer of synthetic graphite with Seadrift down in Texas. And we're confident that will play a critical role in supporting the domestic supply chain now and into the future. I think we remain confident that we can be a good strategic partner in this space and we'll continue our advocacy efforts to propose GrafTech's interest now and into the future. As it relates to any further commentary, I just think at this point, it wouldn't be appropriate or useful for me to comment further.

And our last question comes from the line of Jay Spencer with Stifel.

So you mentioned your selling price on average is $4,200 per ton. And you mentioned that the U.S. volumes, I believe you said boosted the average price by $120 per ton. Is that -- is it fair to say that U.S. pricing has improved sequentially from the prior quarter?

I would say -- this is Rory. I would say it's flat to slightly up compared to the prior quarter.

Remember that you typically see U.S. contracts negotiated on an annual basis. So you don't see a lot of price movement within the U.S. on an annual basis.

And as us analysts looking for indicators of pricing, we've looked at China graphite electrode pricing on Bloomberg historically, even though that's not the price you guys actually realized it was -- it provided some information in terms of directionality. But given the increase in tariffs for active anode material and given your focus on the U.S. Is that kind of that Bloomberg metric no longer useful? Or how should we think about that?

Yes. So that Bloomberg price, we've seen quite a bit of volatility over the last 12 to 18 months. I think it serves at least as a directional indicator of what you're seeing in the market, maybe not at those exact levels, just given kind of the delta between the domestic market, the export market and what that looks like. But China pricing -- the Chinese export pricing is always going to be a proxy for what the rest of world pricing is. So those regions that are less focused on quality and are focused on buying the cheapest electrodes available to the market. So that Chinese pricing is going to see -- or have a bigger impact in the Middle East, Turkey, Africa, South America, in particular. As it relates to the U.S. and the EU, it doesn't necessarily influence those prices to the same extent, just given the fact that you do already have trade protections in place against Chinese electrodes to some extent in the U.S. and certainly to a bigger extent in the EU. So it certainly is an influence, but it isn't the ultimate driver in those 2 end markets. What becomes the challenge is the amount of volume that gets put into the rest of world by the Chinese, exporting 300,000-plus tons of electrodes into the rest of world markets puts a lot of pressure on the western suppliers to focus their energies in the markets that have better pricing. And it just has this knock-on effect as you think about globally. So that's why the commentary on the excess capacity and exporting their excess capacity becomes so relevant.

That concludes the question-and-answer session. I would like to turn the call back over to our CEO, Tim Flanagan for closing remarks.

Thank you, Desiree. I'd like to thank everyone on this call for your interest in GrafTech, we look forward to speaking with you next quarter. Have a great day.