Needle Coke

Needle Coke

Needle coke is a premium type of petroleum coke with a carbon content of more than 97 percent. It gets its name from the needle-like formation. It is applied in industry predominantly as a main constituent for preparing graphite electrodes for electric arc furnaces that are used to manufacture steel. Needle coke, which is characterized by high quality, is derived from the feedstock of a particular specification, and requires a multiple-step conversion process, such as delayed coking, calcining, and graphitization. It is known for its high conductivity of heat, low coefficient of expansion of heat, and good conductivity of electricity, which tempts it to be suitable for high-temperature applications with high conductivity, such as producing lithium-ion batteries for aerospace and nuclear industries. Some factors impacting needle coke demand include the steel industry’s requirement of graphite electrodes for electrode making, active enhancement in battery technology, and environmental policies governing petroleum processing.

The Needle Coke Market is expected to grow at a significant rate of around 5.6% during the forecast period (2024-2032). The needle coke market is experiencing substantial growth due to its crucial role in various industries. One of the primary drivers is the increasing demand for graphite electrodes in the steel industry, particularly in electric arc furnaces (EAFs). Needle coke is the preferred raw material for producing high-quality graphite electrodes, which are essential for efficient steel production. For instance, according to data from Sanergy Group Limited, the production volume of graphite electrodes worldwide was 8785 thousand metric tons in 2023 and is projected to reach 795.4 thousand metric tons in 2024. Additionally, the expanding electric vehicle (EV) market is driving the demand for lithium-ion batteries, another key application of needle coke.

• Based on the product type, the market has been divided into petroleum-based and coal tar pitch-based. The petroleum-based is expected to grow with a significant CAGR in the forecast period (2024-2032) due to its high quality. Steel industries that use needle coke as a raw material in manufacturing graphite electrodes have seen a rising demand. Using petroleum-based needle coke instead of synthetic needle coke has improved its quality and performance indices, such as high thermal conductivity and low coefficient of thermal expansion, as well as EAFs for steel manufacturing. Also, petroleum-based needle coke is required to produce battery anodes, mainly for lithium-ion batteries used in the electric vehicle industry, which is on the rise at the current time. The growing EV market and consistent progress in batteries will help augment the demand for petroleum-based needle coke and indirectly help the market increase in size.
• Based on the Application, the market is segmented into graphite electrodes, lithium-ion batteries, and other applications. The graphite electrode segment dominated the market in the year 2023. Graphite electrodes are crucial components used in electric arc furnaces (EAFs) to produce 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.
• For a better understanding of the market adoption of Needle Coke, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, France, U.K., Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Currently, the Asia-Pacific region holds the most significant market share, which is followed by countries such as China, which is the largest producer cum consumer of needle coke. Currently, China dominates the graphite electrode market in both supply and demand scales internationally. More than 40 manufacturers are recognized as graphite electrode producers in China. The Chinese market has reignited the demand for needle coke consumed by graphite electrodes, and its further applications are expanding to lithium-ion battery anodes, owing to the EV industry. The significant thing is that for the near future, this demand is projected to remain steady and supported by the necessary and corresponding prices.
• Some of the major players operating in the market include Phillips 66, Mitsubishi Chemical Group Corporation, NIPPON STEEL Chemical & Material Co., Ltd, ENEOS Holdings, Inc, China BaoWu Steel Group Corporation Limited, Chu Kong Petroleum and Natural, Indian Oil Corporation Limited, Sojitz JECT Corporation, Petrochina, and RefComm Inc