Needle Coke Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Grade (Intermediate, Premium, Super Premium), By Application (Graphite Electrode, Lithium-Ion Batteries, Others), And By Geography - Forecasts From 2023 To 2028

The needle coke market is expected to grow at a CAGR of 5.35% from an initial value of US$3.384 billion in 2021 and is estimated to reach US$4.872 billion in 2028.

Needle coke is a high-quality carbon substance generated from coal tar or petroleum. Needle coke is a significant substance used as an ignition source in electric arc furnaces (EAF) for steel manufacturing. Due to more stringent environmental laws, steel producers choose the EAF technology over blast furnace-blast oxygen furnace (BOF) procedures to produce steel. It is also used to create ferroalloys, specialty carbon, silicon metal, and lithium-ion batteries. The market for needle coke is expanding due to the rising demand for lithium-ion batteries and graphite electrodes, particularly for electric cars.

Rising demand for electric vehicles.

Several factors that promote the need for needle coke products, such as premium and super premium grade needle coke, and applications related to graphite electrodes and lithium-ion batteries are driving the worldwide market for needle coke market. For instance, as per the latest insights released in May 2023 by the International Energy Association, sales of electric vehicles, particularly electric cars, sales have increased dramatically over the previous three years in Europe, rising from 1.4 million in 2020 to 2.3 million in 2021 and 2.7 million in 2022. Special carbon compounds, such as anode materials for lithium-ion batteries, are also made with the help of needle coke. As a result, there will be a rise in the demand for electric cars and their by-products, such as needle coke.

Rising demand for steel products.

As per the insights by World Steel Association, global steel product trade climbed 13.1% from 405.6 million metric tonnes (Mt) in 2020 to 458.9 Mt in 2021, demonstrating a robust rebound of the steel sector following the COVID-19 epidemic. Since graphite electrodes for arc furnaces in the steel sector are frequently made with needle coke, a high-quality petroleum coke, this is advantageous for the needle coke market. The electrical conductivity and heat needed to melt scrap steel are provided by graphite electrodes, which are crucial for steel recycling. As needle coke is an important raw material for graphite electrodes, the expansion of the world market for steel products suggests an increase in demand for this substance.

Market Developments:

Businesses constantly invest in improving their earnings to obtain superior solutions and more dependable results for a demanding and developing global needle coke market. For instance, Mitsubishi Chemical was the first company to successfully produce coal-based needle coke made from coal tar during coke production. There are special features in the company's needle coke, such as a low- coefficient of thermal expansion, low electric resistance, less breakage, and less spalling.

Graphite electrodes and Lithium-ion batteries

The needle coke market is segmented by applications into graphite electrodes, lithium-ion batteries, and others. Graphite electrode is an industrial product used majorly in EAF steel production, which is a primary method of steel production. As per the World Steel Association, global EAF steel production grew at a CAGR of 4% from 2015 to 2021.

Lithium-ion batteries, which power electric vehicles and store energy from renewable sources, rely on needle coke-based graphite anodes. The investment to improve lithium-ion battery production is a reason for the development of the needle coke market in China. In June 2021, Chinese battery giant CATL announced an investment of 58.2 billion yuan ($8.98 billion) to boost the production capacity of lithium-ion batteries.

Geographical Insights:

The needle coke market, by geography, is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. Asia Pacific is projected to grow, fueled by the presence of key market players and the established steel industry in the region. The existence of major market players and expanding automotive and construction industries are driving the regional market growth. By country, the Asia Pacific needle coke market is divided into Japan, China, India, South Korea, Thailand, Taiwan, and Indonesia, where China is expected to hold a major market share owing to its steel industry.

China Steel Industry

China is the world's largest producer and consumer of steel, accounting for a significant portion of global steel production. The demand for needle coke rises due to the increasing use of steel in infrastructure and construction projects. In 2021, the Party Central Committee and the State Council of China allocated RMB 3.65 trillion (US$573 billion), of which 50 percent was used for transport infrastructure, municipal administration, and industrial park infrastructure sectors.

Continuous modernization and upgradation of the steel industry will propel the market development. For instance, China issued the Industrial Carbon Peaking implementation plan in June 2022. The proposed plan mentions that EAF steel mills will make over 20% of steel products. According to the Ministry of Industry and Information Technology, China, the annual processing capacity of steel scrap is expected to exceed 180 million mt, with a 15% share of EAF steelmaking by 2030. The figure below shows the total EAF production capacity from 2023 to 2030 (99 MT EAF capacity) by region in the nation. It further indicates that South and East China will hold 55% of the new EAF capacity. 

Needle Coke Market Scope:

 

Report Metric	Details
Market Size Value in 2021	US$3.384 billion
Market Size Value in 2028	US$4.872 billion
Growth Rate	CAGR of 5.35% from 2021 to 2028
Base Year	2021
Forecast Period	2023 – 2028
Forecast Unit (Value)	USD Billion
Segments Covered	Grade, Application, and Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	Phillips 66, Asbury Carbons, Seadrift Coke LP, Graf Tech International Holdings Inc., Mitsubishi Chemical Corporation, SojitzJECT Corporation, Indian Oil Corporation, NIPPON STEEL Chemical & Material Co., Ltd., Sumitomo Corporation
Customization Scope	Free report customization with purchase

 

Market Segmentation:

• By Grade

• • Intermediate
  • Premium
  • Super Premium

• By Application

• • Graphite Electrode
  • lithium-ion batteries
  • Others

• By Geography

• • North America

• • • USA
    • Canada
    • Mexico

• • South America

• • • Brazil
    • Argentina
    • Others

• • Europe

• • • UK
    • Germany
    • France
    • Italy
    • Others

• • Middle East and Africa

• • • UAE
    • Saudi Arabia
    • Others

• • Asia Pacific

• • • Japan
    • China
    • India
    • South Korea
    • Thailand
    • Taiwan
    • Indonesia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumption

1.7. Base, and Forecast Year Timeline

2. RESEARCH METHODOLOGY 

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. NEEDLE COKE MARKET, BY GRADE

5.1. Introduction

5.2. Intermediate

5.3. Premium

5.4. Super Premium

6.  NEEDLE COKE MARKET, BY APPLICATION

6.1. Introduction

6.2. Graphite Electrode

6.3. Lithium-ion batteries

6.4. Others

7. NEEDLE COKE MARKET, BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. United States

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe

7.4.1. UK

7.4.2. France

7.4.3. Germany

7.4.4. France

7.4.5. Italy

7.4.6. Others

7.5. Middle East and Africa

7.5.1. United Arab Emirates

7.5.2. Saudi Arabia

7.5.3. Others

7.6. Asia Pacific

7.6.1. Japan

7.6.2. China

7.6.3. India

7.6.4. South Korea

7.6.5. Thailand

7.6.6. Taiwan

7.6.7. Indonesia

7.6.8. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES

9.1. Phillips 66

9.2. Asbury Carbons

9.3. Seadrift Coke LP

9.4. Graf Tech International Holdings Inc.

9.5. Mitsubishi Chemical Corporation

9.6. SojitzJECT Corporation

9.7. Indian Oil Corporation

9.8. NIPPON STEEL Chemical & Material Co., Ltd.

9.9. Sumitomo Corporation

Phillips 66

Asbury Carbons

Seadrift Coke LP

Graf Tech International Holdings Inc.

Mitsubishi Chemical Corporation

SojitzJECT Corporation

Indian Oil Corporation

NIPPON STEEL Chemical & Material Co., Ltd.

Sumitomo Corporation