Global Needle Coke Market 2024–2033

Reports Description

Global Needle Coke Market was valued at USD 2.8 Billion in 2024 and is expected to reach USD 6.2 Billion by 2033, at a CAGR of 5.5% during the forecast period 2024 – 2033.

Needle coke is a type of high-quality petroleum coke, which is derived from heavy residual oils during the refining process of crude oil. It is characterized by its unique structure composed of long, thin, needle-like crystalline structures. Due to its specialized properties, needle coke is relatively rare and expensive compared to other types of petroleum coke.

Needle Coke Market: Growth Factors

Increasing demand for steel recycling

The increasing demand for steel recycling is a significant driver for the needle coke market due to its pivotal role in the production of graphite electrodes essential for electric arc furnace (EAF) steelmaking. As the world focuses more on sustainability and reducing carbon emissions, steel recycling has gained prominence as a key component of the circular economy.

Electric arc furnaces, which use graphite electrodes made from needle coke, are integral to the recycling process, as they efficiently melt scrap steel to produce high-quality steel products. With the growing emphasis on reducing the environmental footprint of steel production, the demand for needle coke is expected to rise proportionally to support the expansion of EAF steelmaking capacity.

This trend underscores needle coke’s critical position in enabling sustainable steel production practices and meeting the increasing global demand for recycled steel products. For instance, Tata Steel has forecasted that within the next 20-30 years, the recycling sector will surpass the mining industry in size.

They underscored the transformative influence of technological advancements in the steel industry, highlighting its capacity to improve cost-effectiveness and elevate customer satisfaction.

Shift in consumer preference toward electric vehicles

The shift in consumer preference toward electric vehicles (EVs) is poised to significantly drive the needle coke market growth. Electric cars rely on lithium-ion batteries, which require needle coke-derived graphite electrodes for their manufacturing.

As demand for EVs continues to surge due to environmental concerns and government incentives, the need for high-quality needle coke to produce graphite electrodes escalates correspondingly. This uptrend in EV adoption directly stimulates the needle coke market, as graphite electrodes represent a critical component in the production of lithium-ion batteries.

Moreover, advancements in EV technology, coupled with increasing regulations favouring cleaner transportation, are expected to sustain the growth trajectory of the electric vehicle market, further bolstering the demand for needle coke in the foreseeable future. Thus, the burgeoning preference for electric cars acts as a significant catalyst propelling the needle coke market forward.

For instance, the Indian market for internal-combustion engine (ICE) vehicles has experienced growth in recent years, but none of the tier-one Indian car consumers expressed readiness to contemplate purchasing an electric car for their next vehicle.

This stands in stark contrast to the global average, which has reached a record high of 52%. Nevertheless, this disparity underscores a pivotal turning point for India, signalling a rapid shift towards electrification within the automotive industry.

Needle Coke Market: Restraints

Uncertainty in the global crude oil and natural gas

Uncertainty in the global crude oil and natural gas markets can significantly hinder the needle coke market in several ways. Needle coke is derived from certain fractions of crude oil, meaning fluctuations in crude oil prices directly impact needle coke production costs.

Volatility in oil prices can disrupt the cost structure of needle coke manufacturers, leading to uncertainty in pricing and supply. Additionally, natural gas is often used as a feedstock in the production of needle coke. Uncertainty in natural gas markets, including supply disruptions or price fluctuations, can further complicate production processes and impact needle coke availability.

Consequently, industries relying on needle coke, such as steel manufacturing and lithium-ion battery production, may face challenges in planning and sourcing this critical material, leading to potential supply chain disruptions and increased costs. In such a scenario, strategic planning and diversification of feedstock sources become essential for needle coke producers and end-users to mitigate risks and ensure stability in the market.

Needle Coke Market: Opportunities

Increasing demand for needle coke in energy storage technologies

The demand for needle coke in energy storage technologies, particularly in the production of lithium-ion batteries, has been a significant driver of the needle coke market. Needle coke is a crucial component in the manufacturing of synthetic graphite anodes used in these batteries.

As the demand for electric vehicles (EVs) and grid-scale energy storage systems continues to rise globally, the need for high-performance lithium-ion batteries grows exponentially. Needle coke’s unique properties, including high thermal conductivity and mechanical strength, make it indispensable for producing graphite anodes with superior performance and durability.

Consequently, the needle coke market is propelled by the expanding energy storage sector, with manufacturers investing in increasing needle coke production capacity to meet the escalating demand from the burgeoning EV and renewable energy industries. This trend underscores the pivotal role of needle coke in advancing energy storage technologies and facilitating the transition towards a more sustainable energy landscape.

For instance, The Office of Electricity (OE) within the U.S. Department of Energy (DOE) has unveiled over USD 30 million in awards and funding opportunities during the Energy Storage Grand Challenge (ESGC) Summit held in Atlanta.

Among these opportunities are two distinct USD 15 million funding opportunity announcements (FOAs) aimed at fostering innovation in energy storage. One FOA focuses on enhancing the reliability of long-duration energy storage technologies, while the other targets the identification and resolution of pre-competitive research and development barriers in the energy storage field.

Needle Coke Market: Segmentation Analysis

The needle Coke market is segmented by type, application, and region.  Based on type, the market is classified petroleum based and coal based. Petroleum dominated the market in 2022 with a market share of 70% and is expected to keep its dominance during the forecast period 2024-2032.

The petroleum industry plays a pivotal role in driving the needle coke market due to its production process. Needle coke is derived from heavy residual oils during the refining of crude oil, specifically from feedstocks with high aromatic content. As such, fluctuations in crude oil prices and availability directly impact needle coke production and pricing.

Additionally, advancements in petroleum refining technologies can affect the yield and quality of needle coke. The demand for needle coke is primarily fuelled by the steel industry for the production of graphite electrodes used in electric arc furnaces.

Furthermore, emerging applications such as lithium-ion batteries and fuel cells are expanding the demand for needle coke. Consequently, the petroleum industry’s ability to supply suitable feedstocks and efficiently refine them influences the growth and stability of the needle coke market.

Based on application, the market is classified into graphite electrodes, lithium-ion batteries, special carbon materials, rubber compounds and others. The graphite electrodes segment dominated the market in 2022 with a market share of 45% and is expected to keep its dominance during the forecast period 2024-2032.

Graphite electrodes are crucial components in electric arc furnaces used for steelmaking, where they conduct electricity and generate the intense heat necessary to melt scrap steel and other raw materials.

Needle coke is the primary material used in manufacturing high-quality graphite electrodes due to its exceptional properties such as high thermal conductivity and mechanical strength. As steel demand continues to rise globally, particularly in emerging economies, the demand for graphite electrodes also increases, thereby driving the needle coke market.

Additionally, advancements in technologies like electric vehicles and renewable energy storage systems further bolster the demand for needle coke for use in lithium-ion batteries and fuel cells, adding another dimension to its market growth. Overall, the graphite electrode industry’s dependence on needle coke underscores its pivotal role in driving the needle coke market forward.

Report Scope

Needle Coke Market: Regional Analysis

By region, Needle Coke market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle East & Africa. The Asia-Pacific dominated the global needle coke market in 2022 with a market share of 45% in 2022 and is expected to keep its dominance during the forecast period 2024-2032.

The Asia-Pacific region is a major driver of the needle coke market due to several factors. Rapid industrialization and urbanization in countries like China and India have led to increased demand for steel and other carbon-based products, which in turn drives the need for needle coke in the production of graphite electrodes used in steelmaking.

Additionally, the growing adoption of electric vehicles (EVs) and renewable energy technologies in the region has increased the demand for lithium-ion batteries and fuel cells, both of which require needle coke as a key component.

Furthermore, the presence of major needle coke producers and manufacturers in countries like Japan and South Korea further fuels the market growth in the Asia-Pacific region. Overall, the region’s expanding industrial base, coupled with its focus on technological advancements and sustainable energy solutions, continues to drive the demand for needle coke.

Needle Coke Market: Recent Developments

• In May 2023, Chevron Lummus Global LLC (CLG) secured a contract from TAQAT Development Company for the construction of a new needle coke/synthetic graphite complex in Rabigh, Saudi Arabia, with a capacity of 75,000 metric tons per annum.

• In October 2022, Mitsubishi Chemical boosted production capacity at its Sakaide facility to 3.9 million tons per year and exported approximately 70% of the company’s needle coke output to international markets.

• In April 2023, GrafTech International Ltd., a prominent producer of top-notch graphite electrode products vital for electric arc furnace steel production, opened a new sales office in Dubai, United Arab Emirates.

 List of the prominent players in the Needle Coke Market:

• Phillips 66
• Mitsubishi Chemical Corporation
• PetroChina Company Limited
• C-Chem Co. Ltd.
• JXTG Holdings Inc.
• Baowu Steel Group Corporation Limited
• Indian Oil Corporation Limited
• Shanxi Hongte Coal Chemical Industry Co. Ltd.
• Shandong Yida New Material Co. Ltd.
• Asbury Carbons
• Baosteel Group Corporation
• Sumitomo Chemical Co. Ltd.
• Seadrift Coke LP
• Sinopec Shanghai Petrochemical Company Limited
• PCK Petroleum Development Limited
• ConocoPhillips Company
• Mitsubishi Chemical Holdings Corporation
• Indian Oil Corporation
• Sinopec Shanghai Petrochemical Co. Ltd.
• Sojitz JECT Corporation
• Others

These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The Needle Coke Market is segmented as follows:

By Type

• Petroleum Based
• Coal Based

By Application

• Graphite Electrodes
• Lithium-ion Battery
• Special Carbon Material
• Rubber Compounds
• Others

By Grade

• Intermediate
• Premium
• Super Premium

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America