Needle coke is a specially engineered carbon material featuring a needle-like microstructure, produced through the delayed coking process of either petroleum or coal feedstocks. This premium petroleum coke is noted for its unique needle-like shape, high carbon content, and low levels of sulfur and metals. It also possesses superior thermal conductivity. Needle coke is created while refining crude oil or from coal tar pitch using a sophisticated procedure called delayed coking.
The needle coke market is expanding due to the increasing demand for graphite electrodes used in steel production. The global needle coke market was valued at $3.05 billion in 2023, and it is expected to grow at a CAGR of 7.99% and reach $6.58 billion by 2033.
This growth is further propelled by the burgeoning electric vehicle industry, leading to higher market revenues. Needle coke's distinctive properties make it highly sought after for manufacturing graphite electrodes, crucial for the operation of electric arc furnaces in steelmaking.
As demand for steel grows, along with the expanding market for lithium-ion batteries and other advanced materials, the need for needle coke is anticipated to increase. These efforts aim to enhance the production efficiency and environmental sustainability of needle coke and to investigate alternative carbon sources for its creation.
The needle coke market features key players such as Asbury Carbons, Grazpromneft, China Petroleum & Chemical Corporation, Shandong Jingyang Technology Co. Ltd, GrafTech International, and Shanxi Hongte Coal Chemical Co Ltd. Other significant contributors include Indian Oil Corporation Ltd, Mitsubishi Chemical Corporation, NIPPON STEEL Chemical & Material Co., Ltd., Sumitomo Corporation, Baotailong New Materials Co., Ltd., Phillips 66, POSCO FUTURE M, TAQAT, and Arak Oil Refinery.
These companies are engaging in strategic partnerships and pursuing market expansion strategies to strengthen their positions in the market.
This market is driven by factors such as infrastructural developments, economic expansion, urbanization, industrialization, and the increasing demand for steel and electric vehicles. However, it faces challenges like global uncertainties, regulatory inconsistencies, economic volatility, and infrastructural constraints, which can impede growth.
• In September 2020, Indian Oil Corporation announced plans to invest $171.2 million in establishing a new needle coke facility at the Paradip Refinery in Odisha. This investment is intended to boost the refinery's capacity to produce high-grade needle coke, a vital component for the steel and aluminum sectors.
• In December 2021, POSCO FUTURE M purchased a stake in the Chinese company SINUO, a manufacturer of artificial graphite anode materials. This acquisition is expected to enhance the company's capabilities in producing materials suitable for battery anodes.
• In December 2022, Gazprom Neft revealed plans to initiate a project at the Omsk Refinery for producing needle coke. This product is essential in the manufacture of graphitized electrodes used in the steelmaking industry and for lithium-ion batteries.
