Rising demand for steel and iron, especially from the Asia Pacific region, is driving market revenue growth
According to the most recent analysis by Emergen Research, the size of the global Needle Coke market was USD 2,293.5 billion in 2021 and is projected to grow at a rate of 8.7% during the forecast period. One of the main drivers boosting market revenue growth is the rising production of graphite electrodes for the steel sector, particularly in emerging nations, the rising use of smart devices, and the strong demand for graphite batteries. In order to create graphite electrodes with a very low Coefficient of Thermal Expansion, manufacturers use needle coke, a premium-grade, high-value petroleum coke (CTE). The steel manufacturing sector uses these graphite electrodes in electric arc furnaces (EAFs) to melt scrap metal and make steel. The needle coke has a strong heat conductivity, good chemical stability, and tensile strength.
As consumer preferences for electric vehicles change, manufacturers will have a lot of chances to find new uses for lithium-ion batteries in the Hybrid Electric Vehicle (HEV) and Battery Electric Vehicle (BEV) sectors.
The government’s supportive policies, fluctuating gas costs, and growing consumer awareness of the need to cut carbon emissions have all contributed to the HEV industry’s explosive expansion in recent years. Over the past few years, these factors have greatly increased the market’s demand for needle coke.
The adoption of hybrid-electric cars is expected to grow in popularity over the next ten years due to the execution of numerous measures to reduce carbon and other emissions, even though the penetration of electric vehicles was relatively low. The market for needle coke is anticipated to be driven by a shift in consumer preference toward hybrid electric vehicles.
In the steel and aluminium sectors, needle coke is the main raw material used to make graphite electrodes in arc furnaces. It’s a unique kind of coke with exceptional structural qualities, high-temperature resistance, high electrical resistance, oxidizability, and thermal expansion coefficient (CTE). Over 40% of the cost of raw materials used to make graphite electrodes is needle coke.
Due to the abundant supply of scrap, the manufacturing of steel using the electric arc furnace process has substantially increased in developed countries throughout Europe and the Americas. In India, over 60% of steel is made using the electric arc furnace process, whereas in the Middle East, over 90% of steel is produced using an electric furnace.
In 2018, the market was led by the super-premium grade segment, which had over 46.0% of the volume share. Due to its remarkable inherent characteristics and low sulphur content (less than 0.4%), this grade is commonly used in steel and carbon applications.
Super-premium grade allows for a 5% increase in productivity in steel recycling operations due to its low coefficient of thermal expansion (CTE), low puffing rate, and big particle size. These are also regarded as the greatest grades produced while producing ultra-high power (UHP) graphite electrodes of superior quality.
The electrode used in ferroalloy furnaces and silicon metals on the market is needle coke. Graphite electrodes, which are utilised in large-capacity submerged arc furnaces, typically call for these cokes. Due to a drop in the price of crude oil, the production of needle coke for use in silicon metals and ferroalloys is expected to rise quickly over the forecast period.
Some Key Highlights From the Report
In 2021, the category of petroleum-based needle coke accounted for a sizable portion of revenue. Demand for petroleum-based needle coke has greatly increased due to rising manufacture of synthetic graphite electrodes for electric arc furnaces in the steel industry and lithium-ion battery anode material.
In 2021, the segment with the highest revenue share was super-premium grade. Due to its low sulphur content and remarkable intrinsic qualities, such as its low puffing rate, low coefficient of thermal expansion, and larger particle size, which enable a 5% increase in productivity in steel recycling, super-premium grade needle coke is being used more frequently.
In 2021, the segment with the biggest revenue share was graphite electrodes. Due to its high thermal conductivity and heat resistance, graphite can be employed in difficult environments including high-temperature environments.
In 2021, the Asia Pacific region’s needle coke market accounted for the greatest revenue share. The region’s rapidly expanding steel industry and expanding automobile sector are two major reasons boosting aluminium demand in Asia Pacific. Due to its strength, durability, ductility, and resilience, steel is frequently used in the building and construction industry. Steel and other building materials are in high demand due to the development of infrastructure and growing urbanisation in many emerging nations. In addition, Asia Pacific consumes a significant amount of semiconductors, making up over 50% of worldwide consumption due to the region’s significant electronics market and growing automotive industry.
Some major companies in the global market report include Asbury Carbons, Baosteel Group Co., GrafTech International, Indian Oil Corporation Ltd., Mitsubishi Chemical Holdings Corporation, Nippon Steel Chemical & Material Co. Ltd., Phillips 66 Company, Posco Chemical, Sumitomo Corporation, and China National Petroleum Corporation.
Emergen Research has segmented the global needle coke market on the basis of product type, grade, application, end-use, and region:
- Product Type Outlook (Revenue, USD Billion, Volume, Kilotons; 2019-2030)
- Coal-based Needle Coke
- Petroleum-Based Needle Coke
- Shaft Calciner
- Rotary Kiln
- Grade Outlook (Revenue, USD Billion, Volume, Kilotons; 2019-2030)
- Intermediate Grade
- Premium Grade
- Super-Premium Grade
- Application Outlook (Revenue, USD Billion, Volume, Kilotons; 2019-2030)
- Graphite Electrodes
- Silicon Metal and Ferroalloys
- Lithium-ion Anode
- Carbon Black
- Rubber Compounds
- End-Use Outlook (Revenue, USD Billion, Volume, Kilotons; 2019-2030)
- Aluminum and steel Industry
- Aerospace & defense
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