The needle coke market is primarily driven by graphite electrodes. Needle cokes have unique properties including high purity, high electrical/thermal conductivity, low coefficient of thermal expansion, and strength that make it an essential raw material for manufacturing ultra-high power graphite electrodes used in electric arc furnaces for steel production. A single ton of steel requires nearly 0.1 ton of graphite electrode. Rising steel production around the globe directly impacts the growth of the needle coke market.

The Global Needle Coke Market is estimated to be valued at US$ 3.32 Bn in 2024 and is expected to exhibit a CAGR of 10.% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the needle coke market are Baosteel Group, C-Chem Co. Ltd, China National Petroleum Corporation, ENEOS Corporation, Kaifeng Pingmei New Carbon Material Technology Co. Ltd (KFCC), Mitsubishi Chemical Corporation, Phillips 66 Company, PMS Tech (a joint venture of POSCO Chemtech and Mitsubishi Chemical), Seadrift Coke L.P. (GrafTech International), Shandong Jing Yang Technology Co. Ltd, Shandong Yida Rongtong Trading Co. Ltd, Shanxi Hongte Coal Chemical Co. Ltd, and Sinosteel Corporation.

The global Needle Coke Market Size is witnessing high demand due to increasing consumption of needle coke in graphite electrode manufacturing. Rapid industrialization and urbanization in developing countries are key factors driving the demand for graphite electrodes from the electric arc furnace steel industry.

Major players in the needle coke market are focusing on capacity expansions to strengthen their market position and cater to the growing demand from different end-use industries globally. For instance, C-Chem entered the Chinese and other Asian markets by expanding its production plant to 3,00,000 tons per annum in 2020. Phillips 66 Company also increased its Convent, Louisiana facility's annual needle coke production capacity to 2,40,000 metric tons.

Market Key Trends

The increasing consumption of needle coke in the lithium-ion battery industry is one of Needle Coke Market Companies is increasingly used as anode material in the manufacturing of lithium-ion batteries for electric vehicles and energy storage systems. Stringent regulations regarding carbon emissions are driving automakers towards electrification of vehicles. This is positively impacting the demand for lithium-ion batteries and thereby demand for needle coke.

Porter’s Analysis

Threat of new entrants: The needle coke industry requires high capital investment and technical expertise for production. Established players have economies of scale which make it difficult for new players to enter the market.

Bargaining power of buyers: The buyers have moderate bargaining power as there are few substitutes available for needle coke. However, established players have strong global presence and supply capabilities.

Bargaining power of suppliers: A limited number of suppliers provide raw materials like petroleum pitch for producing needle coke. This gives them significant influence over prices.

Threat of new substitutes: There are limited substitutes available for needle coke. Continuous R&D is being conducted to develop alternative materials but needle coke remains dominant.

Competitive rivalry: The market has few major international players with production facilities across regions. Intense competition exists between players in terms of pricing and production capabilities.

Geographical regions holding major market share: Asia Pacific currently holds the largest share of the global needle coke market, primarily driven by demand from China, Japan, and South Korea. Established graphite electrode manufacturing industries in these countries are the major consumers.

Fastest growing region: The market in North America is expected to witness the highest growth during the forecast period. Increasing shale gas exploration activities will drive demand for needle coke from the lithium-ion battery and steel industries in the US and copyright.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)