Needle Coke Market Forecast 2023-2030: Assessing Industry Projections

Needle Coke Market Forecast 2023-2030: Assessing Industry Projections

The Needle Coke Market is estimated to be valued at US$ 2.99 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Needle coke is a specialty product used in the manufacture of graphite electrodes for electric arc furnaces that produce steel and other alloys. Needle coke has a very low coefficient of thermal expansion and highly anisotropic electrical conductivity, which allow it to endure immense heat in the furnace without breaking down. It provides rigidity and strength to the electrodes during the steelmaking process. The key properties of needle coke that make it ideal for use as a raw material in graphite electrodes are its ability to retain its shape under extreme heat and pressure, its high electrical and thermal conductivity, and its low coefficient of thermal expansion.

Market Key Trends:

One of the key trends driving the growth of the needle coke market is the increasing usage of graphite electrodes in electric arc furnaces for steel production. As per market estimates, electric arc furnaces account for over 30% of current global crude steel output. Graphite electrodes are a critical component in electric arc furnaces as they conduct huge amounts of electricity into the furnace through the endpoints. Needle coke is the primary raw material used for manufacturing graphite electrodes owing to its properties such as high strength, heat resistance, and electrical conductivity. With growth in steel production globally through the electric arc furnace route, demand for needle coke is expected to rise substantially over the forecast period.

Porter’s Analysis

• Threat of new entrants: The needle coke industry requires large capital investments which acts as a barrier for new players. In addition, the industry is dominated by a handful of core producers.
• Bargaining power of buyers: Buyers have moderate bargaining power as there are limited options available and needle coke has few substitutes in the production of graphite electrodes used in steel manufacturing.
• Bargaining power of suppliers: The power of raw material suppliers is strong as sources of feedstock like petroleum and coal tar pitch used for needle coke production are limited.
• Threat of new substitutes: There is limited threat as needle coke has few alternatives that can match its properties and is crucial for ultra-high power applications.
• Competitive rivalry: Intense as the industry is dominated by few major players who compete on capacity expansions and technological upgrades.

SWOT Analysis

• Strengths: Established product supply network, technical expertise and ability to produce specialized grades of needle coke.
• Weaknesses: Capital intensive nature of production and dependency on fluctuations in raw material prices.
• Opportunities: Growing demand for lithium-ion batteries and fuel cells.
• Threats: Stringent environmental regulations regarding emissions during manufacturing can increase compliance costs.

Key Takeaways

The global needle coke market is projected to grow at a CAGR of 10% over the forecast period of 2023 to 2030 due to increasing demand from the graphite electrode and lithium-ion battery sectors. The growing steel industry especially in Asia Pacific along with an expansion in electric arc furnaces is bolstering the product consumption.

Regional analysis: The Asia Pacific region dominates the market for needle coke and is forecast to exhibit the highest CAGR of over 12% owing to significant steel production growth in economies like China and India. China represents more than 60% of the world’s steel output. Countries like Japan and South Korea are also major importers of needle coke to feed their large petroleum refining and graphite industries.

Key players: Key players operating in the needle coke market include 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. Major players are investing in expansions and new plants to meet the escalating demand.