Global Needle Coke Market: Focus on Application, Type, Grade, End Use, and Country-Level Analysis - Analysis and Forecast, 2023-2033

The global needle coke market was valued at $3.05 billion in 2023, and it is expected to grow at a CAGR of 7.99% and reach $6.58 billion by 2033. This market is shaped by infrastructural advancements, economic growth, urbanization, industrialization, and growing demand for steel and electric vehicles. Conversely, challenges such as global uncertainties, regulatory discrepancies, economic instability, and infrastructural limitations pose hurdles to growth.

Introduction of Needle Coke

Needle coke is a purposely structured carbon material with a needle-like microstructure obtained from delayed coking of petroleum or coal feedstocks. Needle coke is a high-quality petroleum coke with a distinct needle-like structure characterized by its high carbon content, low sulfur and metals content, and excellent thermal conductivity. It is produced during the refining of crude oil or from coal tar pitch via a complex process known as delayed coking.

Market Introduction

The needle coke market has been consistently growing with the growing demand for graphite electrodes for the steelmaking process. With the rapid expansion of the electric vehicle industry, the market is gaining more revenue. The unique properties of needle coke make it highly desirable for the production of graphite electrodes, which are essential components in electric arc furnaces used in steel production. Graphite electrodes made from needle coke exhibit high thermal resistance, mechanical strength, and electrical conductivity, making them ideal for withstanding the extreme conditions inside electric arc furnaces. In addition to steelmaking, needle coke is also used in the production of other carbon-based materials, such as lithium-ion battery anodes, specialty carbon products, and various high-performance materials in industries such as aerospace and electronics.

Industrial Impact

Given the increasing demand for steel and the growing market for lithium-ion batteries and other advanced materials, the demand for needle coke is expected to continue to rise. However, concerns about environmental impacts associated with its production and the need for sustainable alternatives are prompting research and development efforts aimed at improving the efficiency and environmental performance of needle coke production processes, as well as exploring alternative sources of carbon for its manufacture.

The key players operating in the needle coke market include Asbury Carbons, Grazpromneft, China Petroleum & Chemical Corporation, Shandong Jingyang Technology Co. Ltd, GrafTech International, Shanxi Hongte Coal Chemical Co Ltd, Indian Oil Corporation Ltd, Mitsubishi Chemical Corporation, NIPPON STEEL Chemical & Material Co., Ltd., Sumitomo Corporation, Baotailong New Materials Co., Ltd., Phillips 66, POSCO FUTURE M, TAQAT, Arak Oil Refinery, among others. These companies are focusing on strategic partnerships and market expansion to expand their market presence.

Market Segmentation:

Segmentation 1: by Application

• Graphite Electrodes
• Lithium-Ion Battery Anode
• Specialty Carbon Products
• Others

Graphite Electrode to Dominate the Needle Coke Market (by Application)

The demand for needle coke in the production of graphite electrodes is significant and closely tied to the steel industry. Graphite electrodes are crucial components used in electric arc furnaces (EAFs) for the production of steel via the secondary route, which involves melting scrap steel. Electric arc furnaces require high-performance graphite electrodes to conduct electricity and generate the extreme heat necessary to melt scrap steel and other raw materials. Needle coke is the preferred raw material for manufacturing graphite electrodes due to its exceptional properties, including high thermal conductivity, low coefficient of thermal expansion, high mechanical strength, and low electrical resistance. All this is expected to drive the needle coke market during the forecast period 2023-2033.

Segmentation 2: by End Use

• Aluminium and Steel Industry
• Automotive Industry
• Other Industrial

Aluminium and Steel Industry to Dominate the Needle Coke Market (by End Use)

The steel industry is the primary consumer of needle coke, where it is used in the production of graphite electrodes. Electric arc furnaces (EAFs) utilize graphite electrodes to generate the high temperatures necessary to melt scrap steel and other raw materials for steelmaking. Needle coke's unique properties, including high thermal conductivity and mechanical strength, make it indispensable for manufacturing high-quality graphite electrodes capable of withstanding the extreme conditions within EAFs. As the steel industry grows, so does the demand for needle coke. In the aluminum industry, needle coke is used in the production of certain carbon-based materials, such as cathodes for aluminum electrolysis cells. Carbon cathodes play a crucial role in the Hall-Héroult process, which is the primary method for producing aluminum. However, the demand for needle coke in the aluminum industry is relatively smaller compared to its demand in the steel industry.

Segmentation 3: by Type

• Oil-Based
• Coal-Based

Oil-Based to be Dominant in the Needle Coke Market (by Type)

Needle coke demand in the oil-based sector primarily stems from its use in the production of graphite electrodes, which are essential components in electric arc furnaces (EAFs) used for steelmaking. Needle coke's unique properties, including high carbon content, low impurities, and excellent thermal conductivity, make it the preferred material for manufacturing high-quality graphite electrodes.

Segmentation 4: by Grade

• Intermittent Grade
• Premium Grade
• Super-Premium Grade

Super-Premium Grade to Dominate the Needle Coke Market (by Grade)

The shift toward high-efficiency steel production and increasingly demanding quality standards creates a strategic opening for suppliers of super-premium grade needle coke. This material's unique properties are essential for ultra-high-power graphite electrodes. Additionally, the rapidly expanding demand in nuclear, aerospace, semiconductor, and other high-tech sectors makes this market segment promising for further growth.

Segmentation 5: by Region

• North America: U.S., Canada, and Mexico
• Europe: Germany, France, Italy, U.K., and Rest-of-Europe
• Asia-Pacific: China, Japan, South Korea, India, and Rest-of-Asia-Pacific
• Rest-of-the-World: Middle East and Africa and South America

The demand for needle coke in the Asia-Pacific (APAC) region has been growing steadily in recent years. The Asia-Pacific region is a major hub for steel production, with countries such as China, Japan, South Korea, and India being significant contributors. Electric arc furnaces (EAFs) are widely used in steelmaking in this region, and needle coke is a critical raw material for producing graphite electrodes used in EAFs. The expansion of steel production capacity in Asia-Pacific countries has led to an increased demand for needle coke. With the push for electric vehicles to combat air pollution and reduce carbon emissions, there has been a surge in demand for lithium-ion batteries, which require needle coke-derived graphite as an anode material. As APAC countries such as China and South Korea lead the way in EV production and adoption, the demand for needle coke for battery production has been on the rise.

Recent Developments in the Needle Coke Market

• In September 2020, Indian Oil Corporation planned to allocate $171.2 million toward establishing a new needle coke facility at the Paradip Refinery, located in Odisha. This investment aimed to enhance the refinery's capabilities in producing high-grade needle coke, a crucial material for the steel and aluminum industries.
• In December 2021, POSCO FUTURE M acquired a stake in a Chinese manufacturer, SINUO, of artificial graphite anode materials. This is expected to help the company with the required properties of battery anode material.
• In December 2022, Gazprom Neft planned to launch a project to produce needle coke used in the manufacturing of graphitized electrodes for the steelmaking industry and lithium-ion batteries at the Omsk Refinery.

Demand - Driver, Limitation, and Opportunity

Market Demand Driver: Carbon Reduction Mandates and Environmental Standards

The needle coke market is poised for significant growth, propelled by the increasing adoption of the electric arc furnace (EAF) steelmaking process and the mounting pressure to achieve carbon neutrality targets. Sustainability considerations are reshaping the steel industry; the EAF process offers a more environmentally conscious approach compared to the traditional basic oxygen furnace (BOF) method. This shift favors needle coke, a critical material for EAF graphite electrode production. Carbon neutrality targets are rising in prominence due to a mix of factors, including tightening environmental regulations, growing consumer demand for sustainable products, and investor pressure for environmental, social, and governance (ESG) responsibility. Industries with high carbon footprints, such as steel manufacturing, are urgently seeking ways to decarbonize their operations. The needle coke market stands to benefit substantially from this trend as EAF adoption accelerates, thereby expected to drive the needle coke market over the forecast period from 2023 to 2033.

Market Challenge: Rising Raw Material Prices

Surging prices for raw materials, notably coal tar and crude oil, pose a considerable challenge to the needle coke industry. The production of needle coke is critically dependent on these feedstocks, rendering it highly sensitive to their price volatility. The Russia-Ukraine war, trade wars, and other global uncertainties are leading to supply chain disruptions, resulting in ups and downs of raw material prices for needle coke manufacturing. An upward trend in coal tar prices, influenced by supply chain disruptions and heightened demand from other sectors, is compressing profit margins for needle coke manufacturers. Similarly, the unpredictable crude oil market is directly affecting the cost of petroleum-based needle coke feedstocks. These rising expenses generate a cascading effect, leading to increased needle coke prices and potentially reducing demand from key industries such as steel and aluminum.

Market Opportunity: Vertical Integration of Needle Coke Business

Vertical integration represents a compelling opportunity for needle coke manufacturers and their customers in the sector. Amid fluctuating costs of raw materials, especially needle coke, adopting vertical integration tactics can solidify supply chains, counteract price volatility, and enhance profitability for all involved parties. By venturing upstream into needle coke production, through either the establishment of new plants or through strategic acquisitions, graphite electrode producers can secure a critical input. This opportunity diminishes dependence on third-party suppliers and shields against market fluctuations. Ensuring access to a dependable, high-quality needle coke supply leads to cost efficiencies and fortifies a competitive edge in the graphite electrode industry. Moreover, needle coke consumers also stand to gain from vertical integration. This approach promises enhanced supply chain reliability, guaranteeing the steady availability of vital materials. Furthermore, tighter integration between producers and consumers can spur innovation in both product development and process efficiency, bolstering growth and competitive positioning in the market.

How can this report add value to an organization?

Product/Innovation Strategy: The product segment helps the reader understand the different grades and types. Moreover, the study provides the reader with a detailed understanding of the needle coke market based on the end user.

Growth/Marketing Strategy: The needle coke market has seen major development by key players operating in the market, such as business expansions, partnerships, collaborations, mergers and acquisitions, and joint ventures. The company's favored strategy has been product developments, business expansions, and acquisitions to strengthen its position in the needle coke market.

Competitive Strategy: Key players in the needle coke market analyzed and profiled in the study involve needle coke manufacturers and the overall ecosystem. Moreover, a detailed competitive benchmarking of the players operating in the needle coke market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, acquisitions, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.

Research Methodology

Factors for Data Prediction and Modeling

• The scope of the needle coke market report has been focused on both oil-based and coal-based needle coke types.
• In the grade segment, intermittent grade, premium grade, and super-premium grade are considered in the scope. In the application segment, specialty carbon products are subdivided into atomic power core materials and others. Moreover, in the other industrial segment, the semiconductor industry is considered under the scope of the report.
• The base currency considered for the market analysis is US$. Currencies other than the US$ have been converted to the US$ for all statistical calculations, considering the average conversion rate for that particular year.
• The currency conversion rate has been taken from the historical exchange rate of the Oanda website.
• Nearly all the recent developments from January 2020 to December 2023 have been considered in this research study.
• The information rendered in the report is a result of in-depth primary interviews, surveys, and secondary analysis.
• Where relevant information was not available, proxy indicators and extrapolation were employed.
• Any economic downturn in the future has not been taken into consideration for the market estimation and forecast.
• Technologies currently used are expected to persist through the forecast with no major breakthroughs in technology.

Market Estimation and Forecast

This research study involves the usage of extensive secondary sources, such as certified publications, articles from recognized authors, white papers, annual reports of companies, directories, and major databases to collect useful and effective information for an extensive, technical, market-oriented, and commercial study of the global needle coke market.

The process of market engineering involves the calculation of the market statistics, market size estimation, market forecast, market crackdown, and data triangulation (the methodology for such quantitative data processes is explained in further sections). The primary research study has been undertaken to gather information and validate the market numbers for segmentation types and industry trends of the key players in the market.

Primary Research:

The primary sources involve industry experts from the needle coke market and various stakeholders in the ecosystem. Respondents such as CEOs, vice presidents, marketing directors, and technology and innovation directors have been interviewed to obtain and verify both qualitative and quantitative aspects of this research study.

The key data points taken from primary sources Include:

• Validation and triangulation of all the numbers and graphs
• Validation of the report's segmentation and key qualitative findings
• understanding the competitive landscape
• validation of the numbers of various markets for market type
• Percentage split of individual markets for regional analysis

Secondary Research

This research study of the needle coke market involves extensive secondary research, directories, company websites, and annual reports. It also makes use of databases, such as Hoovers, Bloomberg, Businessweek, and Factiva, to collect useful and effective information for an extensive, technical, market-oriented, and commercial study of the global market. In addition to the aforementioned data sources, the study has been undertaken with the help of other data sources and websites, such as the U.S. Geological Survey and Natural Resources Canada.

Secondary research was done in order to obtain crucial information about the industry's value chain, revenue models, the market's monetary chain, the total pool of key players, and the current and potential use cases and applications.

The key data points taken from secondary research include:

• segmentations and percentage shares
• data for market value
• key industry trends of the top players of the market
• qualitative insights into various aspects of the market, key trends, and emerging areas of innovation
• quantitative data for mathematical and statistical calculations

Key Market Players and Competition Synopsis

The companies that are profiled in the needle coke market have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.

Some of the prominent names in this market are:

• Asbury Carbons
• Grazpromneft
• China Petroleum & Chemical Corporation
• Shandong Jingyang Technology Co. Ltd
• GrafTech International
• Shanxi Hongte Coal Chemical Industry Co., Ltd.
• Indian Oil Corporation Ltd
• Mitsubishi Chemical Corporation
• NIPPON STEEL CORPORATION
• Sumitomo Corporation
• Baotailong New Materials Co., Ltd.
• Phillips 66
• POSCO FUTURE M
• TAQAT
• Arak Oil Refinery

Companies that are not a part of the aforementioned pool have been well represented across different sections of the report (wherever applicable).


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