Global Needle Coke Market Is Anticipated To Witness High Growth Owing To Increasing Demand For Lithium Ion Batteries And Rising Need For Steel Recycling Market

 

 Needle Coke Market 

Overview:

Needle coke is used as a raw material for producing graphite electrodes. Graphite electrodes are used in various applications such as in the steel manufacturing, lithium-ion batteries and other metal-to-graphite conversion processes. Graphite electrodes manufacturers require high-quality needle coke to manufacture advanced and innovative products. Needle coke is a combustible brown-colored solid with the properties of both petroleum and coal. It is a byproduct of the coking process in a delayed coker unit (DCU). The morphology of needle coke depends on the pre-treatment method of oil and coal feedstock and the chemical composition of its hydrocarbon fractions. Oil and coal feedstock pre-treatment is a key factor in needle coke production. It helps in increasing the share of desirable components and reducing the share of harmful impurities. It helps in achieving the required viscosity characteristics and stabilizing the material. The main types of pre-treatment methods are sulphur removal, mechanical impurity extraction and the separation of QI components.

Market Dynamics:

Increasing adoption of inorganic growth strategies by key players is estimated to augment growth of the global needle coke market during the forecast period. For instance, POSCO Chemical signed an agreement with Ultium Cells LLC, for supplying graphite anode material in December 2022. This will be used for the expansion of EV battery cells and the entire product was sourced from needle coke in POSCO. Moreover, increasing fluctuation in raw material pieces is anticipated to restrain growth of the global needle coke market during the forecast period.

Impact of COVID-19:

The pandemic was first identified in 2019. The pandemic resulted in imposing strict restrictions in many countries. These restrictions affected trade activities globally and also had a huge impact on the global economy. Before the pandemic there was a high demand for Needle Coke from steel and lithium ion battery manufacturers. However, during the pandemic these manufacturers had to shut down their manufacturing activities. The manufacturers were also facing changes regarding supply chains and prices of raw materials. Thus, the pandemic had a negative impact on the growth of the global needle coke market.

Key Takeaways:

 

The global needle coke market is expected to witness robust growth, exhibiting CAGR of 10.73 % over the forecast period, due to rising business expansion by key players. For instance, A new project for producing needle coke is being launched by Gazprom Neft at their Omsk refinery in December 2022. This project is expected to be complete by 2024.

North America is anticipated to witness robust growth in the global needle coke market during the forecast period, due to rising end-user industries for steel production.

Key players active in the global needle coke market are HEG Limited, Phillips 66 Company, China National Petroleum Corporation, Mitsubishi Chemical Corporation, Graphite india Limited, GrafTech International, Eastman Chemical Company, Sumitomo Chemical Co., Ltd, Shanghai Petrochemical, Indian Oil Corporation Ltd, GrafTech International, NIPPON STEEL Chemical & Material Co., Ltd., Asbury Carbons, Eni S.p.A., and Royal Dutch Shell Plc.