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%
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.
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.
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
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
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
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?
Table of Contents
Chapter 1. Research Framework
Chapter 2. Research Methodology
Chapter 4. Global Needle Coke Market Overview
Chapter 5. Global Needle Coke Market, By Product Type
Chapter 6. Global Needle Coke Market, By Grade
Chapter 7. Global Needle Coke Market, By Application
Chapter 8. Global Needle Coke Market, By End User
Chapter 9. Global Needle Coke Market Analysis, By Region
Chapter 10. North America Needle Coke Market Analysis
Chapter 11. Europe Needle Coke Market Analysis
Chapter 12. Asia Pacific Needle Coke Market Analysis
Chapter 13. Middle East & Africa Needle Coke Market Analysis
Chapter 14. South America Needle Coke Market Analysis
Chapter 15. Company Profile (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, Measurement Methods, and Business Strategy Outlook)
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Asbury Carbons
- China Petroleum & Chemical Corporation (Sinopec)
- GrafTech International Ltd.
- Graphite India Ltd.
- Indian Oil Corporation Limited
- Mitsubishi Chemical
- NIPPON STEEL Chemical & Material Co., Ltd.
- POSCO Future M Co., Ltd.
- Reliance Industries
- RIZHAO HENGQIAO CARBON CO.,LTD
- Sojitz Ject Corporation
- Sumitomo Chemical
- The Phillips 66 Company
- Tokai Carbon Ltd.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 239 |
| Published | July 2024 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( USD | $ 2.6 Billion |
| Forecasted Market Value ( USD | $ 5.25 Billion |
| Compound Annual Growth Rate | 8.4% |
| Regions Covered | Global |
