Needle Coke Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Needle Coke Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The needle coke market is estimated to be about 1,400 kilo tons in 2021 and is expected to register a CAGR of greater than 10% during the forecast period (2022-2027).

The manufacturers of graphite electrodes, which are used in steel manufacturing through electric arc furnaces, are facing a huge impact due to the COVID-19 pandemic owing to the declining prices and demand of electrodes. The evolving COVID-19 outbreak is, thus, impacting the steel manufacturers and also the raw material manufacturers of graphite electrodes, i.e., needle coke.

• Over the short term, the major factors driving the growth of the market studied are the growing demand for lithium-ion batteries​ and the rising availability of steel scrap in China.
• On the flip side, the impact of COVID-19 is acting as a roadblock to the growth of the market studied.
• An increase in lithium-ion battery production in Europe is likely to act as an opportunity for the market studied over the forecast period.
• Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

• Needle coke is used as a primary raw material for graphite electrodes in an electric furnace. It is a premium grade, high-value petroleum coke used in the manufacturing of graphite electrodes of very low coefficient of thermal expansion (CTE) for the electric arc furnaces in the steel industry. When making the electrodes, it takes up to six months to make with processes, including baking and rebaking to convert the coke into graphite.
• The Graphite electrodes are primarily used in the electric arc furnace steel manufacturing, alloy steel, various alloys, and nonmetals melting.
• China is both the largest manufacturer and consumer of graphite electrodes across the world. Over the past few years, graphite electrodes witnessed a significant rise in prices.
• The COVID-19 outbreak has negatively affected the production of graphite electrodes across the world and has caused major supply chain disruptions.
• The above-mentioned factors are likely to affect the demand for needle coke for graphite electrode application during the forecast period.

• Asia Pacific region is expected to dominate the Needle Coke market as the region has countries such as China (the biggest producer and consumer of needle coke), and Japan.
• China holds the largest share in terms of consumption and production capacity of graphite electrodes in the global scenario, thus, presenting the scope for the steel production in the country, thus, further displaying the demand in the needle coke market during the forecast period.
• In addition to it, the Government of China is also focusing on developing eco-friendly means of producing steel. Several hundred thousand metric ton of new capacity of electric arc furnace is already in the pipeline. Currently, about 20% of the steel is produced from electric arc furnaces in the country.
• Japan is one of the leading produces as well as the exporter of petroleum and coal tar-based pitch needle coke. Japanese companies are one of the largest produces of graphite electrodes across the world. The market giants of graphite electrodes include Showa Denko, Nippon Carbon, SEC Carbon, and Tokai Carbon.
• Japan UPS demand is fueled by the rising demand for high–rated power supply from data centers, coupled with rising technological developments in the country. The increase in demand for heavy-energy storage batteries to store solar power is expected to drive the market for lithium-ion batteries in the country.
• Hence, Asia Pacific region is expected to dominate the global market based on the afore mentioned aspects.

The needle coke market stands to be a consolidated market, and the top seven players accounted for over 40% of the global production capacity. Some of the major players in the market include Phillips 66 Company, Shandong Jingyang Technology Co. Ltd, C-Chem CO., Ltd., Shanxi Hongte Coal Chemical Co., Ltd., and Shandong Yida Rongtong Trading Co. Ltd, among others.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support