Global Needle Coke Market By Product(Petroleum Based, Coal Based), By Grade(Super-premium, Premium-grade, Intermediate-grade), By Application(Electrode, Silicon metals & ferroalloys, Carbon black, Rubber compounds, Others), By Region, and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Market Overview

The Needle Coke Market size is expected to be worth around USD 7.1 billion by 2033, from USD 2.77 billion in 2023, growing at a CAGR of 9.9% during the forecast period from 2023 to 2033.

There are enormous opportunities for manufacturers to discover the potential applications of lithium-ion cells in Hybrid Electric Vehicles (HEV) and Battery Electric Vehicles (BEV).

Note: Actual Numbers Might Vary In The Final Report

Key Takeaways

• Market Growth Projection: The market is expected to surge from $2.77 billion in 2023 to a whopping $7.1 billion by 2033, reflecting a robust CAGR of 9.9%.
• Dominant Product Types: Petroleum-based needle coke claimed an 85% market share in 2023, signifying its superiority due to exceptional quality for graphite electrode production in steelmaking and battery industries.
• Grades Matter: Grades like super-premium, premium-grade, and intermediate-grade dictate the quality and applications of needle coke, ensuring tailored materials for specific electrode manufacturing needs.
• Application Influence: The electrode application took the lead in 2023, commanding over 43% of the market share, showcasing the crucial role of needle coke in steel manufacturing and lithium-ion batteries.
• Driving Forces: Increased demand for lithium-ion batteries in electric vehicles, a surge in steel recycling, rising incomes, urbanization, and a focus on reducing carbon emissions are key drivers behind the needle coke market’s growth.
• Opportunities: Technological advancements, research and development efforts, collaborations, and exploring new markets pave the way for market growth and innovation.
• Regional Insights: Asia Pacific (APAC) dominated the market in 2023, with India’s expected benefit from government initiatives promoting domestic manufacturing, creating lucrative opportunities.
• Key Players & Developments: Major players like Mitsubishi Chemical Holdings Corporation, PHILLIPS 66, and others are investing in R&D. Recent developments include projects by Gazprom Neft and agreements by POSCO Chemical, highlighting the industry’s forward momentum.

Product Analysis

Petroleum-Based Needle Coke: This type dominated the market in 2023, capturing a substantial 85% share. Petroleum-based needle coke is derived from specific petroleum feedstocks and is known for its exceptional quality. It possesses the necessary properties crucial for the production of high-quality graphite electrodes, meeting the stringent requirements of steelmaking and battery industries.

Needle coke is a crucial material used in the production of graphite electrodes, mainly utilized in electric arc furnaces for steel manufacturing and lithium-ion batteries. The market for needle coke consists of two primary types: petroleum-based and coal-based.

Coal-Based Needle Coke: Although present in the market, coal-based needle coke held a notably smaller market share. This type is derived from coal tar pitch and serves specific industries with distinct manufacturing needs. It may be utilized in applications requiring different material characteristics or where specific carbon materials are preferred.

The dominance of petroleum-based needle coke signifies its superior quality and suitability for critical applications in steel production and battery manufacturing. This type’s widespread use highlights its importance in supplying high-performance carbon materials to various industries.

By Grade

In the needle coke market, segmentation based on grades or methods refers to the different qualities or manufacturing processes used to produce needle coke, which is a key material in manufacturing graphite electrodes.

Super-premium Grade: This grade signifies the highest quality needle coke available. It boasts superior properties such as low coefficient of thermal expansion, high thermal conductivity, and excellent electrical conductivity. Super-premium grade needle coke is used in the production of ultra-high-power and high-power graphite electrodes.

Premium-grade: Premium-grade needle coke is of high quality but might have slightly less enhanced properties compared to super-premium grade. It’s still suitable for the production of high-power graphite electrodes used in steel production and other applications requiring high-performance electrodes.

Intermediate-grade: This grade represents needle coke with properties falling between premium and lower-grade variations. It might have slightly lower thermal and electrical conductivity compared to premium grades, making it suitable for less demanding applications.

The quality and properties of needle coke grades play a vital role in determining the performance and efficiency of the graphite electrodes produced, particularly in industries like steel manufacturing. The distinction among these grades allows for tailored materials suited to specific electrode manufacturing needs.

Application Analysis

In 2023, the Needle Coke market was primarily led by the Electrode application, securing over 43% of the market share. Needle coke is crucial in producing graphite electrodes used mainly in electric arc furnaces for steel production and in lithium-ion batteries.

Silicon metals & ferroalloys, Carbon black, Rubber compounds, and other applications covered the remaining market share. Needle coke’s role in these sectors varied, from being used in specific manufacturing processes for silicon metals and ferroalloys to contributing in carbon black production and rubber compound manufacturing.

The dominance of the Electrode application highlights the critical role of needle coke in producing high-quality graphite electrodes, pivotal in industries like steel manufacturing and energy storage. Other applications showcase the diverse uses of needle coke, demonstrating its versatility across multiple industries beyond electrode production.

Note: Actual Numbers Might Vary In The Final Report

Key Market Segments

By Product

• Petroleum Based
• Coal Based

By Grade

• Super-premium
• Premium-grade
• Intermediate-grade

By Application

• Electrode
• Silicon metals & ferroalloys
• Carbon black
• Rubber compounds
• Others

Drivers

Lithium-Ion Battery Demand: More and more electric and hybrid vehicles are hitting the roads, and our gadgets are using lithium-ion batteries too. To make these batteries, you need needle coke, and as the need for these batteries goes up, so does the need for needle coke. It’s like a chain reaction – more batteries mean more demand for needle coke.

Steel Recycling Boom: The steel industry is recycling more than ever before, and needle coke is a big part of this process. As steel recycling grows, so does the need for needle coke. Plus, in the future, we’ll likely need more petroleum-based coke to generate energy, and that’ll boost the needle coke market too.

Rising Incomes and Urbanization: People are earning more, and cities are growing faster. This means more stuff is being used and built, including steel. That’s great for the needle coke market because steel needs needle coke in its production.

Steel Industry Growth and Carbon Emission Awareness: With the steel industry growing, the demand for needle coke goes up too. Also, people are becoming more aware of cutting down carbon emissions, and needle coke plays a role in making that happen.

In simpler terms, the needle coke market is growing because of the increasing need for lithium-ion batteries in electric vehicles and gadgets, the rise in steel recycling, more money in people’s pockets, rapid city development, the growth of the steel industry, and efforts to reduce carbon emissions. These factors are driving the demand for needle coke.

Restraints

Raw Material Price Volatility: The prices of materials needed for making needle coke can be unstable, impacting production and overall costs.

Environmental Regulations: Strict environmental rules and compliance requirements add complexity and cost to manufacturing needle coke.

Impact of COVID-19: The disruption caused by the pandemic affected the supply chain, making it challenging to procure materials and manufacture needle coke.

In short, the needle coke market faces restraints due to fluctuating material prices, adherence to environmental regulations, and the disruptions caused by COVID-19, impacting the supply chain and production. These factors can limit the market’s growth and operation.

Opportunities

Technological Progress: With every new piece of cutting-edge tech that comes out, new opportunities arise for the market to expand and prosper. More amazing and groundbreaking creations mean there are more chances for growth.

Research and Development: Many individuals work on new ideas and research to enhance existing ones, helping the market by finding smarter ways of doing things. This provides great benefits for market growth.

Collaborations and New Markets: Companies are teaming up more often and exploring new places to sell their products. These partnerships and finding new markets help the market grow by creating more opportunities to sell and grow.

In simple terms, as technology improves, more research happens, partnerships form, and new markets open up. These factors create more chances for the market to grow and find better ways to do things.

Challenges

Fluctuating Raw Material Prices: The cost of materials needed for making needle coke can change a lot. This inconsistency in prices affects how much needle coke can be produced and its overall cost.

Environmental Regulations and Awareness: Strict environmental rules that companies must follow can be challenging. Sometimes, there’s not enough understanding or awareness about these regulations, making compliance difficult.

COVID-19 Impact on Supply Chain: The disruption caused by the COVID-19 pandemic affected the supply chain. Getting materials and producing needle coke became more challenging due to this disruption.

Geopolitical and Recession Impact Analysis

Geopolitical Impact

Trade Dynamics: Geopolitical tensions and trade conflicts among nations could result in tariffs and trade barriers affecting the import and export of needlecoke. These measures may disrupt supply chains, escalate costs, and potentially limit market access for key players.

Regulatory Modifications: Changes in geopolitical landscapes can prompt alterations in regulations concerning needle coke production, quality standards, and labeling requirements. Compliance adjustments might be necessary, impacting operational processes within the industry.

Market Accessibility: Geopolitical stability or turmoil in crucial markets could dictate the ease of access for Needle Coke companies to expand into those regions. Political instability or conflicts may deter investments and constrain growth opportunities.

Resource Availability: Geopolitical factors play a role in determining access to natural resources critical for needle coke production, such as specific grades of crude oil. Disputes over resource ownership or availability can disrupt supply chains and impact sustainability initiatives.

Recession Impact

Consumer Demand: During economic downturns, reduced consumer spending habits may affect the demand for steel and aluminum, impacting needle coke, a key component in the production of graphite electrodes used in these industries.

Price Sensitivity: Economic recessions often heighten price sensitivity among consumers. Manufacturers may need to reconsider pricing strategies to maintain competitiveness and retain market share in a more cost-conscious environment.

Supply Chain Interruptions: Economic contractions can disrupt supply chains due to financial instability among suppliers or logistical challenges. This can lead to delays in needle coke production and distribution, affecting its availability to end-users.

Environmental Concerns: Recessions may influence attitudes toward sustainability in industrial processes. There might be increased scrutiny on the environmental impact of needle coke production, potentially driving innovation towards greener production methods.

Regional Analysis

Asia Pacific (APAC) had the largest revenue share at over 46% in 2023. It is expected that the recovery of the North American economy and the growth of many important end-use businesses will remain key driving factors for steel production. The development of new technologies, such as the electric arc furnace or EAF, is key to the growth of mini-mills.

They currently account for 60% of domestic U.S. production. This product was exported by Philips 66 to over 370 kilotons per year in 2021, making it the most famous producer.

The Asia Pacific was the top regional market in 2021, accounting for more than 55%. India is expected to benefit from government initiatives to promote domestic manufacturing. These initiatives will reduce dependence on imports and increase regional production.

This should create lucrative opportunities both for industrial producers and graphite manufacturers. HEG Limited, Graphite India Limited, and Graphite India Limited are major Indian buyers of pitch needle coal.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Key Players Analysis

With the presence of large-scale companies, the global needle coke market remains fragmented. Market players invest in R&D to create needle coke from low-value heavy hydrocarbon streams without any significant feed pre-treatment.

Due to the increased demand in steel production and the manufacture of lithium-ion cells for the automotive industry, needle coke prices rose significantly in 2023. Several Chinese petroleum coke plants have closed due to stringent regulations on carbon emissions. This has had a negative impact on the cost of needle coke.

Маrkеt Кеу Рlауеrѕ

•  Mitsubishi Chemical Holdings Corporation
• PHILLIPS 66
• SHELL GLOBAL
• SUMITOMO CORPORATION
• Indian Oil Corporation Ltd
• TOKAI CARBON CO.
• ASBURY CARBONS INC
• ESSAR OIL LTD
• Reliance Industries Ltd
• HEG LIMITED
• GrafTech International Ltd.
• NIPPON STEEL CORPORATION
• PETROLEUM COKE INDUSTY
• BAOSTEEL GROUP
• mott corporation

Recent Developments

December 2022: Gazprom Neft announced that it is planning to launch a project to produce needle coke in its Omsk refinery, which will be utilized in the manufacturing of Li-ion batteries and graphite electrodes. This project is expected to be completed by 2024.

December 2022: POSCO Chemical announced the agreement with Ultium Cells LLC to supply graphite anode material for the expansion of EV battery cells in the United States. In POSCO Chemical, the entire product was sourced from needle coke.

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