Needle Coke Market Size
| Study Period | 2019 - 2029 |
| Market Volume (2024) | 2.14 Million metric tons |
| Market Volume (2029) | 3.79 Million metric tons |
| CAGR (2024 - 2029) | 12.07 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Needle Coke Market Analysis
The Needle Coke Market size is estimated at 2.14 Million metric tons in 2024, and is expected to reach 3.79 Million metric tons by 2029, growing at a CAGR of 12.07% during the forecast period (2024-2029).
The COVID-19 pandemic negatively impacted the needle coke market. During the pandemic, the manufacturing of graphite electrodes was heavily impacted due to less demand from the steel manufacturing plants, which reduced the consumption of needle coke. After 2020, the market expanded steadily because of the continuous manufacturing of graphite electrodes.
- Over the short term, the major factors driving the growth of the market studied are the increasing investments in EAF steel manufacturing and the government policies to increase scrap steel consumption.
- On the flip side, health hazards associated with petroleum coke act as a roadblock to the growth of the needled (petroleum-based) coke market.
- An increase in lithium-ion battery production globally is likely to act as an opportunity for the market studied during the forecast period.
- Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.
Needle Coke Market Trends
Graphite Electrodes Segment to Dominate the Market
- Needle coke is a high-quality carbon raw material that is produced from coal tar and petroleum. It is a premium grade, high-value petroleum coke used in the manufacturing of graphite electrodes of very low coefficient of thermal expansion (CTE) for the electric arc furnaces in the steel industry.
- The graphite electrodes are primarily used in electric arc furnace steel manufacturing, alloy steel, various alloys, and nonmetals melting. Furthermore, graphite has high thermal conductivity and is very resistant to heat and impact. It also has low electrical resistance, which is needed to conduct the large electrical currents necessary to melt iron. Thus, it can sustain sustaining the extremely high levels of heat generated in EAF (Electric Arc Furnace).
- The increase in crude steel and aluminum production is expected to drive the usage of graphite electrodes, which in turn is expected to favor the demand for needle coke. However, irregular trends in the production of these metals are expected to cause uncertainty in market demand.
- In April 2023, the World Steel Association released its Short-Range Outlook (SRO) steel demand forecast for 2023 and 2024, which stated that the steel demand would see a 2.3% rebound to reach 1,822.3 Mt in 2023, and it is forecasted to grow by 1.7% in 2024 to reach 1,854.0 Mt. In addition, the total world crude steel production was 1,878.5 Mt in 2022, a 4.2% decrease as compared to the value in the previous year.
- China is the largest producer of graphite electrodes. The country accounted for more than 60% of the global graphite electrode production. Furthermore, owing to the largest steel industry, China is also the largest consumer of graphite electrodes. Over the past few years, graphite electrodes witnessed a significant rise in prices.
- According to the Bureau of International Recycling, in China, approximately 226.2 million tons of steel scrap were used for recycling purposes for the steel manufacturing process. In addition, the rising availability of steel scrap in China shows the increasing consumption of needle coke used for graphite electrode manufacturing.
- United States Steel Corporation has started to explore new locations for electric arc furnaces (EAF) to produce advanced grades of steel, which will cost approximately USD 3 billion. This trend is expected to support the studied market.
- However, the European Steel Association (EUROFER) has adjusted its forecast for the consumption of steel products in the European Union in 2022. In comparison to the February 2022 forecast and the expectation of regional metal consumption growth of 3.2%, there is a decline of around 1.9% expected by the association.
- According to the International Aluminum Institute, global aluminum production rose by a marginal 2.0% in 2022 compared to a growth rate that was down from 2.7% in 2021 and the slowest since 2019.
- The above-mentioned factors are likely to affect the demand for needle coke for graphite electrode application during the forecast period.
Asia Pacific region to Dominate the Market
- The Asia-Pacific region is expected to dominate the needle coke market as the region has countries such as China (the biggest producer and consumer of needle coke) and Japan.
- China holds the largest share in terms of consumption and production capacity of graphite electrodes in the global scenario, thus presenting the scope for steel production in the country. At present, there are more than 40 official graphite electrode producers in China, with 30 new entrants that have made other refractory products, along with electrodes, added to the market in the past 2-3 years.
- In addition to this, the Chinese government is also focusing on developing eco-friendly means of producing steel. Several hundred thousand metric tons of new capacity electric arc furnace is already in the pipeline.
- Japan is one of the leading producers and exporters of petroleum, coal, and tar-based pitch needle coke. Japanese companies are one of the largest producers of graphite electrodes in the world. The market giants of graphite electrodes include Showa Denko, Nippon Carbon, SEC Carbon, and Tokai Carbon.
- Japan UPS demand is fueled by the rising demand for high–rated power supply from data centers, coupled with rising technological developments in the country. The increase in demand for heavy-energy storage batteries to store solar power is expected to drive the market for lithium-ion batteries in the country.
- In March 2022, Panasonic Corporation announced its intention to invest in the establishment of a facility at its Wkayama Factory, which will be dedicated to the manufacturing of the new ‘4680’ lithium-ion batteries for the electric vehicle market. The production at the planned facility is slated to begin by March 2024.
- India is the second-largest producer of steel globally. According to World Steel Association data, the crude steel production in India rose by around 5.80% to 124.4 million tons (MT) in 2022, as compared to 118.2 MT in 2021. The country accounts for around 4.8% of the global production of steel every year.
- In November 2022, HEG Ltd announced that it set up a new manufacturing facility for a graphite electrode for lithium-ion batteries in the next three years in India.
- Hence, the Asia-Pacific region is expected to dominate the global market based on the above mentioned aspects.
Needle Coke Industry Overview
The needle coke market is consolidated in nature. Some of the major players in the market (not in any particular order) include Phillips 66 Company, Liaoning Baolai Bioenergy Co. Ltd, China National Petroleum Corporation (CNPC), Shandong Yida Rongtong Trading Co., and Shandong Jing Yang Technology Co. Ltd.
Needle Coke Market Leaders
Phillips 66 Company
Liaoning Baolai Bioenergy Co. Ltd
China National Petroleum Corporation (CNPC)
Shandong Yida Rongtong Trading Co.
Shandong Jing Yang Technology Co. Ltd
*Disclaimer: Major Players sorted in no particular order
Needle Coke Market News
- December 2022: Gazprom Neft announced that it is planning to launch a project to produce needle coke in its Omsk refinery, which will be utilized in the manufacturing of Li-ion batteries and graphite electrodes. This project is expected to be completed by 2024.
- December 2022: POSCO Chemical announced the agreement with Ultium Cells LLC to supply graphite anode material for the expansion of EV battery cells in the United States. In POSCO Chemical, the entire product was sourced from needle coke.
- April 2022: An absorption-type merger was conducted between Nippon Steel Chemical & Material Co. Ltd and C-Chem. C-Chem became a part of Nippon Steel, adding to the needle coke product business.
Needle Coke Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Increasing Investments in EAF Steel Manufacturing
4.1.2 Government Policies to Increase Scrap Steel Consumption
4.2 Restraints
4.2.1 Health Hazards Associated with Petroleum Coke
4.3 Industry Value-Chain Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Price Trend Analysis
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Petroleum Based
5.1.2 Coal-tar Pitch Based
5.2 By Application
5.2.1 Graphite Electrodes
5.2.2 Lithium-ion Battery
5.2.3 Others
5.3 By Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 United Kingdom
5.3.3.3 Italy
5.3.3.4 France
5.3.3.5 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Baosteel Group
6.4.2 China National Petroleum Corporation (CNPC)
6.4.3 Indian Oil Corporation
6.4.4 Liaoning Baolai Bioenergy Co. Ltd
6.4.5 Mitsubishi Chemical Corporation
6.4.6 Nippon Steel Corporation
6.4.7 Phillips 66
6.4.8 POSCO MC Materials
6.4.9 Seadrift Coke LP (Graftech International Ltd)
6.4.10 Shandong DongYang Technology Co. Ltd
6.4.11 Shandong Yida Rongtong Trading Co.
6.4.12 Shanxi Hongte Coal Chemical Co. Ltd
6.4.13 China Petroleum & Chemical Corporation (SINOPEC)
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Lithium-ion Batteries to Boost the Demand for Needle Coke
Needle Coke Industry Segmentation
Needle coke is a high-quality carbon raw material that is produced from coal tar and petroleum. It is primarily used for the manufacturing of graphite electrodes and lithium-ion batteries. The global needle coke market is segmented by type, application, and geography. By type, the market is segmented into petroleum-based and coal-tar pitch based. By application, the market is segmented into graphite electrodes, lithium-ion batteries, and other applications. The report also covers the market sizes and forecasts for the needle coke market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilotons).
| By Product Type | |
| Petroleum Based | |
| Coal-tar Pitch Based |
| By Application | |
| Graphite Electrodes | |
| Lithium-ion Battery | |
| Others |
| By Geography | |||||||
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Needle Coke Market Research Faqs
How big is the Needle Coke Market?
The Needle Coke Market size is expected to reach 2.14 million metric tons in 2024 and grow at a CAGR of 12.07% to reach 3.79 million metric tons by 2029.
What is the current Needle Coke Market size?
In 2024, the Needle Coke Market size is expected to reach 2.14 million metric tons.
Who are the key players in Needle Coke Market?
Phillips 66 Company, Liaoning Baolai Bioenergy Co. Ltd, China National Petroleum Corporation (CNPC), Shandong Yida Rongtong Trading Co. and Shandong Jing Yang Technology Co. Ltd are the major companies operating in the Needle Coke Market.
Which is the fastest growing region in Needle Coke Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Needle Coke Market?
In 2024, the Asia Pacific accounts for the largest market share in Needle Coke Market.
What years does this Needle Coke Market cover, and what was the market size in 2023?
In 2023, the Needle Coke Market size was estimated at 1.91 million metric tons. The report covers the Needle Coke Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Needle Coke Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Needle Coke Industry Report
Statistics for the 2024 Needle Coke market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Needle Coke analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
