Global Needle Coke Market

MARKET SCOPE:

The global Needle Coke market is projected to grow significantly, registering a CAGR of 12.1% during the forecast period (2024 – 2032).

Needle coke is a high-quality, crystalline form of petroleum coke or coal tar pitch coke. It is characterized by its needle-like structure and is produced through a complex manufacturing process known as delayed coking or fluid coking. The needle coke production process involves subjecting specific feedstocks to high temperatures, followed by quenching and distillation steps to achieve the desired properties. The demand for needle coke is primarily driven by its critical role in manufacturing graphite electrodes for electric arc furnace (EAF) steelmaking and anode materials for lithium-ion batteries, particularly in the electric vehicle industry. Needle coke is a vital component in the production of graphite electrodes used in EAF steelmaking. The steel industry's demand for high-quality electrodes, essential for efficient and sustainable steel production, directly influences the demand for needle coke. The expanding electric vehicle market relies on lithium-ion batteries, where needle coke is used in the production of anode materials. As the demand for electric vehicles increases globally, the demand for needle coke for anode manufacturing also rises. Needle coke is utilized in the production of lithium-ion batteries for renewable energy storage applications. Growing investments in renewable energy projects and the need for efficient energy storage solutions contribute to the demand for needle coke. The production of lithium-ion batteries for consumer electronics, such as smartphones, laptops, and tablets, drives the demand for needle coke.

MARKET OVERVIEW:

Driver: Increasing demand for electric vehicle is driving the market growth.

The electric vehicle (EV) market plays a crucial role in driving the needle coke industry. Needle coke is utilized in the production of anode materials for lithium-ion batteries, a key component in electric vehicles. Needle coke, due to its unique properties, is chosen for manufacturing high-quality anode materials. Anodes are essential for the energy storage capabilities of lithium-ion batteries, and the demand for high-performance anodes directly influences the demand for needle coke. The growth of the electric vehicle market places needle coke at the forefront of advancements in battery technology. Needle coke's characteristics contribute to the efficiency and performance of lithium-ion batteries used in electric vehicles. The expansion of the electric vehicle market has a direct impact on the needle coke industry by increasing the demand for needle coke in battery manufacturing. The shift towards electric vehicles is often driven by environmental concerns, including the reduction of greenhouse gas emissions and dependence on fossil fuels. Governments and consumers alike are motivated to embrace cleaner transportation alternatives. Many governments worldwide offer incentives, subsidies, and regulatory measures to encourage the adoption of electric vehicles. These incentives contribute to the growth of the electric vehicle market. As the electric vehicle market expands, there is a parallel increase in the production of lithium-ion batteries. Needle coke, being a critical component in the anode manufacturing process, experiences heightened demand.

Opportunities: Ever – rising steel industry is anticipated for the market growth in the upcoming years

The steel industry is a significant consumer of needle coke, particularly in the production of graphite electrodes. Graphite electrodes made from needle coke are essential components used in Electric Arc Furnace (EAF) steelmaking processes. Needle coke is chosen for its unique properties, including high thermal conductivity, electrical conductivity, and resistance to thermal shock. These characteristics are crucial for the performance of graphite electrodes in the harsh conditions of EAF steelmaking. Graphite electrodes, when used in EAFs, conduct electric currents that generate the high temperatures necessary for melting scrap steel and other raw materials. This process allows for efficient and flexible steel production. The growth of the steel industry directly influences the demand for needle coke. This growth is typically propelled by various factors, including infrastructure development, construction projects, and increased manufacturing activities. Large-scale infrastructure projects, such as construction of buildings, bridges, roads, and other critical structures, require significant amounts of steel. The demand for steel in infrastructure development contributes to the need for high-quality graphite electrodes made from needle coke. The construction industry's demand for steel in residential, commercial, and industrial projects, as well as the manufacturing sector's need for steel components, further drive the growth of the steel industry. There is a direct correlation between the health of the steel industry and the demand for needle coke. As steel production expands to meet the demands of various sectors, the demand for graphite electrodes made from needle coke increases proportionally.

COVID IMPACT:

The global needle coke market, like many other industries, experienced some impacts due to the COVID-19 pandemic. It is important to note that the situation may have evolved since then, and for the most current information, consulting recent industry reports, news sources, and market analyses is recommended. The COVID-19 pandemic disrupted global supply chains across various industries, including the production of needle coke. Restrictions on transportation, lockdowns, and workforce shortages may have affected the availability of raw materials and the transportation of finished products. The steel industry, a significant consumer of needle coke, experienced a decline in demand during the early phases of the pandemic due to construction slowdowns and reduced manufacturing activities. Lower steel production can impact the demand for graphite electrodes made from needle coke. The lithium-ion battery sector, another key consumer of needle coke, may have been affected by disruptions in manufacturing and supply chain delays. Reduced demand for electric vehicles and electronic devices during lockdowns could have influenced the production of lithium-ion batteries. COVID-19-related restrictions, including trade barriers and logistical challenges, may have affected the global trade of needle coke. Changes in demand patterns and logistical constraints could influence the import and export dynamics of needle coke. The uncertainties surrounding the duration and severity of the pandemic may have contributed to market volatility. Fluctuations in demand, supply chain disruptions, and uncertainties about the economic recovery could lead to price volatility in the needle coke market. Companies in the needle coke industry may have faced operational challenges, including workforce issues, facility closures, and changes in production schedules. Implementing health and safety measures may have impacted the efficiency of operations.

SEGMENTATION ANALYSIS:

Petroleum Based segment is anticipated to grow significantly during the forecast period

Needle coke is a specialized form of carbon material, and it is often produced from certain types of petroleum feedstocks. The selection of specific feedstocks is crucial in needle coke production to meet the stringent quality requirements for applications such as graphite electrodes in steel production and anode materials in lithium-ion batteries. In this process, specific fractions of heavy crude oil or other petroleum-derived materials are subjected to thermal treatment to yield the desired needle coke structure. The production process from carefully selected feedstocks contributes to high purity and specific physical properties of needle coke. Needle coke is also used in the production of high-quality anode materials for lithium-ion batteries, contributing to the energy storage sector. The needle coke market can be sensitive to changes in the availability and pricing of specific petroleum feedstocks.

The Lithium-Ion Battery segment is anticipated to grow significantly during the forecast period

Needle coke plays a crucial role in the production of lithium-ion batteries, specifically in the manufacturing of anode materials. The anode of a lithium-ion battery is typically made of carbon, and needle coke is a specialized form of carbon that is well-suited for this application. The anode, typically made of graphite, is a critical component of lithium-ion batteries. It stores and releases lithium ions during the battery's charging and discharging cycles. Needle coke possesses specific characteristics, including high purity and a well-defined crystalline structure, that make it ideal for producing high-performance graphite electrodes used in lithium-ion batteries. Needle coke undergoes a complex manufacturing process, including calcination and graphitization, to produce graphite electrodes. These graphite electrodes, derived from needle coke, exhibit the necessary properties for efficient lithium-ion battery anode performance.

REGIONAL ANALYSIS:

The Asia Pacific region is set to witness significant growth during the forecast period.

The needle coke market is influenced by several factors, including the Asia Pacific region. Needle coke is a specialized form of petroleum coke that is used in the production of graphite electrodes, which are essential in electric arc furnace (EAF) steelmaking and various other applications. The needle coke market is closely tied to the steel industry, particularly the production of electric arc furnace (EAF) steel. The Asia Pacific region, with its significant steel manufacturing capacity, is a major consumer of needle coke. The Asia Pacific region has witnessed a rise in the use of electric arc furnaces for steel production due to their energy efficiency and flexibility. This has increased the demand for needle coke in the manufacturing of graphite electrodes used in EAF steelmaking. Needle coke is also utilized in various other applications, including lithium-ion battery anodes, aerospace, and certain industrial processes. The growth of these industries in the Asia Pacific region contributes to the demand for needle coke. Ongoing infrastructure development projects in countries across Asia Pacific lead to increased steel consumption, driving the demand for needle coke in the production of high-quality graphite electrodes. The needle coke market is influenced by global dynamics, including raw material prices and trade policies. Asia Pacific's position in global trade and its dependence on imports may be factors affecting the needle coke market. Innovations in steelmaking technologies and the development of high-performance electrodes may influence needle coke demand in the Asia Pacific region as manufacturers seek more efficient and sustainable solutions.

COMPETITIVE ANALYSIS

The global Needle Coke market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.

POSCO MC Materials

• December 2023: POSCO Chemical declared that it has reached a deal with Ultium Cells LLC to provide graphite anode material in order to facilitate the growth of electric vehicle battery cells in the US. All of POSCO Chemical's products came from needle coke.

Gazprom

• December 2023: Li-ion battery and graphite electrode production will use the needle coke produced by Gazprom Neft in its planned project to start up at its Omsk refinery. By 2024, this project should be finished.

Baosteel

China National Petroleum Corporation

Indian Oil Corporation

Liaoning Baolai Bioenergy Co. Ltd

Mitsubishi Chemical Corporation

Nippon Steel Corporation

Phillips 66

Seadrift Coke LP (Graftech International Ltd)

Shandong DongYang Technology Co. Ltd

Shandong Yida Rongtong Trading Co.

Shanxi Hongte Coal Chemical Co. Ltd

China Petroleum & Chemical Corporation (SINOPEC)

Scope of the Report

By Product Type

• Petroleum Based
• Coal Tar Pitch Based

By Application

• Graphite Electrodes
• Lithium Ion Battery
• Others

By Region

• North America (the United States & Canada)
• Europe (Germany, UK, France, Spain, Italy, and the Rest of Europe)
• Asia Pacific (China, Japan, India, and Rest of Asia Pacific)
• Rest of the World (the Middle East & Africa, and Latin America)

Key reasons to purchase this report

It provides a technological development map over time to understand the industry’s growth rate and indicates how the Needle Coke market is evolving.

The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which Needle Coke submarket will be the main driver of the overall market from 2024 to 2032.

It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.

It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032.