Global Needle Coke Market, By Product TypeBy GradeBy Application By End User: By Region - Market Size, Industry Dynamics, Opportunity Analysis and Forecast for 2024-2032.

Needle Coke Market, By Product Type (Coal-based and Petroleum-based)By Grade (Intermediate, Premium and Super Premium)By Application (Graphite Electrodes, Silicon Metal & Ferroalloys, Lithium-Ion Anode, Carbon Black, Rubber compounds and Others) By End User (Automotive,Aluminum & Steel,Semiconductor and Others): By Region - Market Size, Industry Dynamics, Opportunity Analysis and Forecast for 2024-2032.

Global Needle Coke Market Forecast till 2032: Set to Reach US$ 5.25 Billion by 2032 with a CAGR of 8.4%

Market Introduction:

The Global Needle Coke Market is experiencing robust expansion, valued at US$ 2.60 billion in 2023 and projected to grow at a CAGR of 8.4% from 2024 to 2032.

The global needle coke market is a vital segment of the petroleum coke industry, essential for the production of graphite electrodes used in electric arc furnaces for steel manufacturing. With its unique properties of high electrical conductivity, low thermal expansion, and superior structural integrity, needle coke is indispensable in industries such as steel, aluminum, and lithium-ion batteries. The market's growth is driven by increasing steel production, technological advancements in electric vehicles, and the rising demand for high-performance materials. Key regions, including North America, Asia-Pacific, and Europe, play significant roles due to their industrial capacities and advancements in manufacturing technologies. Additionally, the shift towards sustainable energy solutions and the growing emphasis on reducing carbon footprints are influencing needle coke production and demand dynamics. As the industry adapts to these evolving trends, strategic investments in research, innovation, and sustainable practices are crucial for capturing growth opportunities and maintaining competitive advantages in the global needle coke market.

Growth Influencers:

The growing utilization of lithium-ion batteries, driven by the increasing adoption of electric vehicles (EVs) and stringent emission reduction policies, significantly catalyzes the needle coke industry. Needle coke, a specialized form of petroleum coke, is essential for producing the graphite anodes used in lithium-ion batteries, which are critical components in electric and hybrid electric vehicles. This shift towards hybrid electric vehicles is expected to have a considerable influence on the needle coke market.

The surge in demand for needle coke is driven by several factors, including favorable government policies, fluctuating gas prices, and heightened consumer awareness regarding the need to reduce carbon emissions. Governments worldwide are implementing policies to promote EVs, recognizing their potential to mitigate climate change. For example, in June 2023, the Indian government authorized the import of pet coke exclusively for producing graphite anode material for lithium-ion batteries, underscoring its commitment to fostering the EV sector. This move highlights the strategic importance of securing materials crucial for EV battery production.

Significant industry investments also shape the needle coke market. In May 2023, Chevron Lummus Global LLC announced a contract for a new 75,000 TPA needle coke/synthetic graphite complex in Rabigh, Saudi Arabia, demonstrating a commitment to expanding production capabilities. Additionally, Chicago-based Anovion Battery Materials’ investment in Bainbridge, Georgia, aims to establish a secure U.S. graphite supply through Anovion’s $800 million plant, highlighting the competition to secure critical minerals for EV batteries.

The demand for needle coke is further propelled by the increasing popularity of Li-MNC (Lithium Nickel Manganese Cobalt Oxide) batteries. Known for their enhanced energy density, cost-effectiveness, and extended life cycle, Li-MNC batteries have emerged as the preferred choice for various applications, including construction machinery, electric vehicles, power trains, innovative medical equipment, and renewable storage systems. Prominent electric vehicle models like the Chevy Volt, Nissan Leaf, and BMW i3 rely on Li-MNC batteries, benefiting from their low self-heating rates and superior performance.

Beyond the automotive sector, the steel industry serves as a major driver for the needle coke market. According to the World Steel Association’s Short-Range Outlook, steel demand is forecasted to increase by 0.4% in 2022, followed by successive rises of 1.8% in 2023 and 1.9% in 2024, reaching 1.81 billion MT. This demand surge is primarily fueled by construction and infrastructure projects, particularly in mature economies such as the United States, where there is a focus on upgrading deteriorating bridges, airports, and transportation networks.

Needle coke is the principal raw material used to manufacture graphite electrodes for electric arc furnaces (EAF) in the steel and aluminum industries. The EAF method, which accounts for a substantial portion of steel production in developed regions, is gaining traction due to its reduced environmental impact, high-temperature operations, space efficiency, and high production output. Approximately 66% of worldwide steel is manufactured in basic oxygen blast furnaces (BOFs), with the remaining 34% produced in EAFs. However, the EAF method is expected to gain significant traction in the coming years due to its environmental benefits and operational efficiencies.

In developed countries across Europe and the Americas, the abundance of scrap metal has led to a dramatic increase in steel manufacturing using the EAF process. For example, in India, the EAF method accounts for over 60% of steel production, while in the Middle East, it accounts for over 90%. The EAF process melts metal at extremely high temperatures (approximately 1,650 °C) and converts it into high-quality steel using recycled steel scrap, which constitutes 90% to 100% of the raw material. This environmentally friendly method provides excellent metallurgical control, driving the consumption of needle coke for the EAF process.

Segment Overview:

The Needle Coke market is categorized based on Product Type, Grade, Application, and end user.

By Product Type

• Coal-based
• Petroleum-based
• Shaft Calciner
• Rotary kiln

By Grade

• Intermediate
• Premium
• Super Premium

By Application

• Graphite Electrodes
• Silicon Metal & Ferroalloys
• Lithium-Ion Anode
• Carbon Black
• Rubber compounds
• Others

By End User

• Automotive
• Aluminum & Steel
• Semiconductor
• Others

The global needle coke market is segmented based on product type into coal-based and petroleum-based needle coke. Among these segments, the petroleum-based needle coke segment dominated the market in 2023, holding a significant market share of 63.7%. Several factors contribute to the dominance of the petroleum-based segment. Primarily, petroleum-based needle coke generally outperforms coal-based needle coke in terms of performance and reliability, making it the preferred option for applications that demand high standards. Additionally, the availability of feedstock and advancements in refining technologies have significantly enhanced the production of high-quality petroleum-based needle coke. The surge in demand for lithium-ion batteries, driven by the increasing adoption of electric vehicles (EVs) and renewable energy storage solutions, has notably escalated the need for petroleum-based needle coke. These batteries rely on high-quality graphite anodes, for which petroleum-based needle coke serves as a crucial raw material. Furthermore, the petroleum-based needle coke segment is projected to witness the highest compound annual growth rate (CAGR) of 8.6% during the forecast period. The dominance of this segment underscores its superior properties, technological advancements, and rising demand across diverse end-use industries.

Segmentation by grades denotes the qualities or manufacturing processes employed in the production of needle coke. The super-premium grade stands out as the epitome of quality in needle coke. In 2023, the super-premium grade dominated the global market with a 50.5% market share and is expected to grow at the highest CAGR of 8.5% over the forecast period. This grade possesses exceptional properties, including a low coefficient of thermal expansion, high thermal conductivity, and outstanding electrical conductivity. Super-premium grade needle coke is used in the production of ultra-high-power and high-power graphite electrodes, meeting the stringent requirements of high-performance applications. Premium-grade needle coke maintains high quality while potentially exhibiting slightly less enhanced properties compared to the super-premium grade. Nevertheless, it remains well-suited for producing high-power graphite electrodes, catering to applications in steel production and other contexts that demand superior electrode performance. Intermediate-grade needle coke occupies a position between premium and lower-grade variations, featuring properties that fall within this spectrum. While it may have slightly lower thermal and electrical conductivity than premium grades, it remains suitable for applications that do not demand the utmost performance.

In 2023, the graphite electrodes application segment emerged as the dominant force in the global needle coke industry, claiming a substantial market share of 72.9%. A notable development outlined in the consultation draft of the Ministry of Industry and Information Technology's "Guiding Opinions on Promoting the High-quality Development of the Iron and Steel Industry" proposes a targeted increase in the proportion of electric arc furnace (EAF) steel production within the total crude steel production by 2025, aiming for a range of 15% to 20%. This anticipated surge in EAF steel production is expected to drive a considerable uptick in the demand for ultra-high-power graphite electrodes. Despite the mixed impact of the COVID-19 pandemic on the needle coke for graphite electrodes market, the heightened demand for these devices is expected to persist in the coming years. This sustained demand is attributed to the prioritization of quality and safety by both individuals and organizations, reinforcing the market's resilience and growth prospects. The escalating production of lithium-ion batteries, with an 8.8% CAGR, is poised to create a substantial surge in the demand for needle coke in the future. This heightened demand is anticipated to exert pressure on the supply of anode-grade petroleum coke, particularly for the aluminum industry. Needle coke is a crucial component in the production of lithium-ion batteries, especially those used in electric vehicles. The anticipated rise in crude steel and aluminum production is poised to drive the utilization of graphite electrodes, subsequently influencing the demand for needle coke.

In 2023, the aluminum and steel segment accounted for the highest share of 48.7%. World aluminum production experienced a 2% growth amidst energy challenges, with China's output showing a notable 4% increase despite COVID-related restrictions. According to the International Aluminium Institute, global primary aluminum production reached 5.859 million tonnes in December 2022, contributing to a total output of 68.417 million tonnes for the year 2022. These dynamics are likely to impact the demand for needle coke throughout the forecast period. The batteries intended for electric vehicles are anticipated to be manufactured using anode material derived from petroleum coke, specifically needle coke or very low-sulfur sponge coke. As of 2020, global lithium-ion cell manufacturing capacity stood at approximately 747 GWh, and projections from the U.S. Department of Energy suggest a substantial increase to 2,492 GWh by 2025. This growth trajectory implies a potential surge in demand for needle and ultra-low-sulfur coke, reaching up to 6 million tonnes within the next four years

Regional Overview:

Based on Region, the market is divided into North America, Europe, Asia Pacific, Middle East and Africa, and South America.

• North America
• The U.S.
• Canada
• Mexico
• Europe
• Western Europe
• The UK
• Germany
• France
• Italy
• Spain
• Rest of Western Europe
• Eastern Europe
• Poland
• Russia
• Rest of Eastern Europe
• Asia Pacific
• China
• India
• Japan
• Australia & New Zealand
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa (MEA)
• Saudi Arabia
• South Africa
• UAE
• Rest of MEA
• South America
• Argentina
• Brazil
• Rest of South America

The needle coke market is poised for dominance by the Asia-Pacific region, primarily driven by China and Japan. China holds a prominent position as the largest producer and consumer of needle coke, with significant potential in steel production. The country boasts over 40 official graphite electrode producers, with 30 new entrants in the past few years, contributing to the electrode and refractory product markets. The Chinese government's emphasis on environmentally friendly steel production methods, including new capacity electric arc furnaces, underscores this trend. Japan, a key player, excels as a leading producer and exporter of petroleum, coal, and tar-based pitch needle coke. Japanese companies like Showa Denko, Nippon Carbon, SEC Carbon, and Tokai Carbon are among the largest global producers of graphite electrodes. Additionally, India, the world's second-largest steel producer, contributes around 4.8% to global steel production annually, further bolstering the Asia-Pacific region's dominance in the needle coke market.

Competitive Landscape:

The Needle Coke market is characterized by a vigorous competitive landscape, with prominent entities like POSCO, Sinopec, GrafTech International Ltd., Graphite India Ltd and Asbury Carbons. at the forefront, collectively accounting for about 45% of the overall market share. This competitive milieu is fueled by their intensive efforts in research and development as well as strategic partnerships and collaborations, underscoring their commitment to solidifying market presence and diversifying their offerings. The primary competitive factors include pricing, product caliber, and technological innovation. As the Needle Coke industry continues to expand, the competitive fervor among these key players is anticipated to intensify. The impetus for ongoing innovation and alignment with evolving customer preferences and stringent regulations is high. The industry's fluidity anticipates an uptick in novel innovations and strategic growth tactics from these leading corporations, which in turn propels the sector's comprehensive growth and transformation.

Report Insights:

• The global needle coke market is projected to reach US$ 5.25 billion by 2032, growing at a CAGR of 8.4%.
• Petroleum-based needle coke dominated the market in 2023, holding a 63.7% share.
• Increasing EV adoption and lithium-ion battery demand are key market drivers.
• The Asia-Pacific region, led by China and Japan, is the largest market for needle coke.

Questions to be Answered:

• What is the estimated growth rate of the Needle Coke market?
• What are the key drivers and potential restraints?
• Which market segments are expected to witness significant growth?
• Who are the leading players in the market?