by The Needle Coke Market is estimated to be valued at US$ 2.99 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Needle coke is a specialty type of petroleum coke that is used mainly in the production process of graphite electrodes for steel electric arc furnaces and lithium-ion batteries. Needle coke provides the thermal conductivity and mechanical strength required for graphite electrodes during steel production. Increasing demand for steel and electric vehicles globally is expected to drive the demand for needle coke over the forecast period.
Market Dynamics:
The key drivers contributing to the growth of the needle coke market include the rising demand from the steel industry and growing lithium-ion battery sector. The steel industry accounts for over 80% of the global needle coke consumption. The increasing demand for steel from the construction and automotive industries is expected to boost the needle coke market growth during the forecast period. In addition, the growing adoption of electric vehicles is augmenting the demand for lithium-ion batteries, which in turn is fueling the demand for needle coke. Thus, the growing end-use industries are projected to accelerate the market expansion of needle coke over the next few years.
Segment Analysis
The needle coke market is dominated by the graphite electrode needle coke segment. Graphite electrodes used in electric arc furnaces require premium quality needle coke that can withstand extreme heat. Graphite electrode needle coke contributes over 75% of the total needle coke market owing to its widespread usage in steel production.
PEST Analysis
- Political: The steel industry is heavily regulated by governments worldwide for environmental protection. Subsidies and tariffs on steel trade affect the demand for needle coke.
- Economic: As a critical raw material for steelmaking, needle coke demand is directly correlated to steel demand from construction and infrastructure development. Growing economies propel the steel industry.
- Social: Rising populations and rapid urbanization drive the need for urban infrastructure and real estate construction, increasing steel requirements.
- Technological: Lower ash and sulfur grades of needle coke have been developed to enable production of ultra-high power graphite electrodes for electric arc furnaces. New graphene applications also present opportunities.
Key Takeaways
The global needle coke market size is expected to reach US$ 4.29 Bn by 2030, expanding at a CAGR of 10% over the forecast period. Rising steel production driven by infrastructure development in developing nations is a major factor fueling the growth of needle coke.
The Asia Pacific region dominates the needle coke market with a share of over 50% in 2023 led by China and India. Rapid urbanization and industrialization along with government initiatives to modernize infrastructure have increased regional steel demand.
Key players operating in the needle coke market include Baosteel Group, C-Chem Co. Ltd, China National Petroleum Corporation, ENEOS Corporation, Kaifeng Pingmei New Carbon Material Technology Co. Ltd (KFCC), Mitsubishi Chemical Corporation, Phillips 66 Company, PMS Tech (a joint venture of POSCO Chemtech and Mitsubishi Chemical), Seadrift Coke L.P. (GrafTech International), Shandong Jing Yang Technology Co. Ltd, Shandong Yida Rongtong Trading Co. Ltd, Shanxi Hongte Coal Chemical Co. Ltd, and Sinosteel Corporation. Mitsubishi Chemical holds the largest share owing to its presence across major needle coke manufacturing regions.
