Needle Coke Market

Needle Coke Market Outlook (2022-2032)

The global needle coke market size to expand at a CAGR of 3.7% and will reach a valuation of US$ 5.86 billion by the end of 2032 from US$ 4.07 billion in 2022.

The U.S. accounts for 91.4% of the North American market share, which is the largest market in the world, mainly on the back of technological advancements and high consumption of needle coke by the steel and aluminium industry.

Report Attributes	Details
Needle Coke Market Size (2021A)	US$ 4 Billion
Estimated Market Value (2022E)	US$ 4.07 Billion
Forecasted Market Value (2032F)	US$ 5.86 Billion
Global Market Growth Rate (2022-2032)	3.7% CAGR
North America Market Size (2021)	US$ 1.4 Billion
North America Growth Rate (2022-2032)	4% CAGR
U.S. Market Growth Rate (2022-2032)	3.9% CAGR
Key Companies Profiled	Mitsubishi Chemical Holding Corporation Indian Oil Corporation Phillips 66 JXTG Holdings Inc. Seadrift Coke L.P. C-Chem Co., LTD Petroleum Coke Industries Company K.S.C Baotailong New Material Co., Ltd. Bao-steel Group Sinopec Shanghai Petrochemical Company Limited Shanxi Hongte Coal Chemical Co Ltd Sinosteel Anshan Research Institute of Thermo-Energy Co. Petrochina International Jinzhou Petrochemical Co., Ltd Shijiazhuang Deli Chemical Co. Petrocokes Japan Ltd.

Needle cocaine is often referred to as acicular cocaine. It is a highly crystalline petroleum coke used in the production of needle coke electrodes for the aluminium and steel sectors. Needle coke electrodes are valuable as they need to be replaced regularly.

Worldwide Needle Coke Consumption Analysis (2017-2021) Vs. Market Forecast Outlook (2022-2032)

Needle coke is the primary raw ingredient used in the aluminium and steel business to make graphite electrodes from arc furnaces. It is a particular type of coke with remarkable structural properties, high electrical resistance, oxidizability, thermal expansion coefficient (CTE), and high-temperature resistance.

Needle coke counts for more than 40% of the raw material costs in the production of graphite electrodes.

In 2017, the needle coke market size was valued at US$ 3.54 billion and increased to US$ 4 billion at the end of 2021 expanding at 2.8% CAGR.

Based on type, petroleum-derived needle coke accounted for 56.4% market share at the end of 2021, while coal tar pitch-derived needle coke accounted for the rest.

Where there was an increase in sales in 2018, demand started decreasing from 2019-end due to the outspread of COVID-19 as business cycles were affected.

The global needle coke market is expected to expand at 3.7% CAGR and reach US$ 5.86 billion in valuation by the year 2032.

Because of favourable government policies, fluctuating gas costs, and increased consumer awareness of the need to decrease carbon emissions, the hybrid electric vehicles business has rapid expansion in recent years. This has contributed to a large increase in needle coke demand as well, as it is extensively utilized in the production of synthetic graphite, which is used to make lithium-ion batteries for electric vehicles.

Which Market Opportunities Will Help Needle Coke Producers Increase their Revenue Growth?

“Rising Trend of Electric Vehicles to Drive Consumption of Needle Coke in Batteries”

Electric vehicle adoption was low; although, due to the implementation of many policies to minimise carbon and other emissions, the craze of buying a hybrid electric car is projected to gain traction over the next decade.

This shift in inclination toward hybrid electric vehicles is expected to have a substantial impact on the needle coke industry.

Needle coke can be produced by several methods. Due to the abundance of scrap, steel manufacturing using the electric arc furnace process has increased dramatically in developed countries across Europe and America.

In India, the electric arc furnace technique holds for over 60% of steel production, whereas in the Middle East, the electric arc furnace technique holds for over 90% of steel production. These reasons have resulted in substantial market sales of needle cokes in these furnaces.

“Investments in R&D & Strategic Collaborations”

The needle coke market sales growth will be boosted by changes in the business environment created by rapid technological advancements. A growing number of R&D activities will also help to moderate the market's growth rate.

Furthermore, an increase in strategic partnerships and emerging new marketplaces will function as market drivers, enhancing the industry's growth rate.

Which Regional Markets Should Needle Coke Producers Focus On?

“Economic Changes, Technological Advancements, & High Demand from Steel Industry in North America”

The North America needle coke market is expected to account for 35.2% of the global market share. The market for North America is predicted to enjoy a valuation of US$ 1.43 billion in 2022, and further is expected to reach a valuation of US$ 2.12 billion by the year 2032.

Recovery of the North American economy, as well as the expansion of several important end-use industries, is expected to continue to be macro-driving variables for steel production in the economy. The introduction of revolutionary technologies such as the electric-arc furnace (EAF) has accelerated the rise of mini-mills, which boosts demand for needle cokes.

Sales of needle coke in the Europe market are expected to expand at a CAGR of 3.4% from 2022 to 2032. The Europe needle coke market is set to enjoy a valuation of US$ 1 billion in 2022 and reach US$ 1.39 billion by 2032.

Currently, the Latin American and MEA regional markets are expected to account for 7.2% and 4.2% of the global market share respectively. The market growth is slightly lower than other regions but is expected to expand at a healthy rate during the forecast period.

The Asia Pacific region is expected to emerge as a leading market for needle coke and is expected to account for 28.7% of the global market share in 2022. Emerging economies of the APAC region are boosting market sales growth. China is the biggest producer and supplier of needle cokes.

Country-wise Insights

How is Demand for Needle Coke Evolving across the U.S.?

“Technological Developments Aiding Growth in Demand for Needle Cokes”

The United States market for needle coke is set to enjoy a valuation of US$ 1.31 billion in 2022, and further expand at a CAGR of 3.9% to reach US$ 1.92 billion by the year 2032.

The U.S. needle coke market is expected to account for 90.8% of the North America Market share, in 2032. The presence of key market players and technological advancements are likely to boost needle coke sales in the U.S.

Which Country Leads the Asia Pacific Needle Coke Market?

“High Consumption & Production of Needle Coke in China”

The China needle coke market is currently valued at around US$ 506.7 million, and is anticipated to progress at a CAGR of 4.8% to reach US$ 800 million by 2032. China is the world's largest manufacturer and user of needle cokes.

In the worldwide context, China has the greatest share of consumption and manufacturing capacity of graphite electrodes, indicating the potential for steel production in the country and indicating the market demand throughout the projection period.

Furthermore, China's government is concentrating on developing environmentally friendly steel production methods. A new electric arc furnace capacity of several hundred thousand metric tonnes is already in the works. Electric arc furnaces currently produce around 20% of the steel produced in the country.

Category-wise Insights

Which Needle Grade Coke is Expected to Be Highly Adopted?

“Super Premium Grade Needle Coke Preferred Due to its Low Sulphur Level & Remarkable Inherent Qualities”

Needle grade coke is segmented into intermediate premium, base premium, and super premium types. Currently, the intermediate premium segment is likely to hold 52.7% of the global market share.

While base premium and super premium segments are expected to account for 28.7% and 18.6% of the global market share respectively, in2022.

Because of its low sulphur level and remarkable inherent characteristics, the super premium grade is commonly used in steel and carbon applications.

The super premium grade has a low coefficient of thermal expansion (CTE) rate, a low puffing rate, and a big particle size, allowing for a 5% increase in steel recycling productivity. These are also the finest grades used in the production of ultra-high power (UHP) graphite electrodes of greater quality.

Which Needle Coke Application is Most Lucrative for Market Players?

“Needle Coke Graphite Electrodes Highly Demanded over Needle Coke Lithium-ion Batteries”

Based on application the needle coke market is segmented into graphite electrodes, lithium-ion batteries, and other applications. Currently, graphite electrodes are expected to account for 54.8% of the global market share.

Needle coke graphite has several qualities, including strong thermal conductivity and heat resistance. It is utilised in tough environments, such as high-temperature environments, and as a result, low thermal expansion coefficients are sought, making it excellent for use as a primary heat source in electric arc furnaces.

At present, needle coke lithium-ion batteries are likely to hold 29.3% of the global market share. Due to consumer demand for natural graphite electrodes over a synthetic product in lithium-ion batteries, needle coke lithium-ion batteries are predicted to expand at a high rate.

One of the major factors driving sales of lithium-ion batteries is the growing popularity of smartphones and other wearable gadgets in the needle coke market.

The other applications are expected to hold 15.9% of the global market share, in 2022.

Why is Petroleum-derived Needle Coke More in Demand than Coal-tar Pitch Needle Coke?

“High Consumption of Petroleum-derived Needle Coke in Steel Industry”

In 2022, petroleum-derived and coal tar pitch-derived needle coke segments are expected to account for 56.5% and 43.5% of the global market share respectively.

The steel industry's demand for synthetic graphite electrodes for Electric Arc Furnaces (EAFs) and lithium-ion battery anode material is driving the demand for petroleum-derived needle cokes.

Coal-tar pitch needle coke is made from coal tar, a by-product of the coke-making process. Because of its good physical-chemical qualities, refined coal-tar needle pitch coke is regarded as a viable material for the manufacturing of needle coke.

Production of needle coke from coal tar pitches has an advantage over petroleum coke in that it is more fragrant and has fewer adverse effects. Needle coke made from coal-based feedstock could outperform needle coke made from petroleum-based feedstock with suitable industrial treatment.

The petroleum needle coke market is expanding rapidly due to its high demand from the steel and aluminium sector for the production of electrodes and they are highly valuable because the electrodes must be changed on regular basis.

Competitive Landscape

Market participants are increasingly investing in research and development activities to create needle coke from low-value heavier hydrocarbon streams that do not require any considerable feed pre-treatment. Needle coke made from low-value heavier hydrocarbon streams can endure temperatures as high as 2800 degrees Celsius.

Furthermore, due to high product pricing, companies are increasing their refinery margins. Captive raw material supply has given fully integrated market companies such as Sumitomo Chemical Company, Phillips 66, and Mitsubishi Chemical Corp. a competitive advantage, especially during price changes.

• ICC, International Ltd. stated in November 2021 that it has finalised the previously announced acquisition agreement with Seadrift Coke L.P, the world's second-largest producer of petro needle coke, and C/G Electrodes LLC (C/G), a US-based graphite electrode maker.

Key Segments Covered in Needle Coke Industry Research

• Needle Coke Market by Type :

  • Petroleum-derived Needle Coke
  • Coal Tar Pitch-derived Needle Coke

• Needle Coke Market by Grade :

  • Intermediate Premium Needle Coke
  • Base Premium Needle Coke
  • Super Premium Needle Coke

• Needle Coke Market by Application :

  • Graphite Electrodes
  • Lithium-ion Batteries
  • Other Applications

• Needle Coke Market by Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA