The premium type of petroleum coke and coal tar based coke is needle coke. Coke is a byproduct of oil refining and coal gasification process and is used as a fuel to manufacture iron, steel and anodes for aluminum smelters. Higher quality ultra-high power (UHP) graphite electrodes and cathode electrodes to melt the scrap metal for recycling steel in the electric arc furnace (EAF) are manufactured from needle coke. For the production, of needle coke the separation of heavy fraction of aromatic feedstock is required to be done in fractionation unit. The thick fraction is then fed to coker unit to attain coking temperatures (3000˚C). The furnace operation is critical since it has to ‘delay’ the feed to attain desired temperature. This minimizes the coke formation in the furnace. Thus, the effective extraction of needle coke is done in this step which is similar to delayed coking.

Based on the type of needle coke, the market is segmented into oil & gas and coal tar pitch derived. Needle coke is the major heating elements used in an electric arc furnace (EAF) for steel making. Scrap from old cars or appliances are melted to form steel. The EAF steel furnace requires high quality coke for graphite electrode manufacturing. The demand from steel industry for specialty cokes is increasing for UHP (Ultra High Power) EAF to produce steel. The developed economies have huge demand of steel and aluminum due to its high consumption in automobiles, heavy equipment and machineries, aircraft amongst others. Graphitized cathodes are used in aluminum production and graphite electrodes are used in steel production. Thus, for graphitization of electrodes in metal production has led to high demand for needle coke globally.

In terms of grade, the needle coke is bifurcated into base premium, intermediate premium and super premium needle coke. The base premium needle coke has the highest coefficient of thermal expansion (CTE) that is less than 0.65 (10-6/ºC). The sulfur content is less than 0.6% and hydrogen content is in the range of 0.035-0.055%. The intermediate premium coke has the CTE less than 0.5 (10-6/ºC). The xylene content is 2.12 g/cm3 and hydrogen content is similar to base premium type. The super-premium needle coke has sulfur content less than 0.4%. The coefficient of thermal expansion is less than 0.4 (10-6/ºC) Max. World’s biggest manufacturers of needle coke also have super premium needle cokes with CTE as low as 0.1 (10-6/ºC) Max. On the basis of end-user, the market is segmented into steel industry, aluminum industry, nuclear power plants and others (lithium batteries, aerospace, etc.)

U.S., China and Japan are the world’s top manufacturers of needle coke. India, Russia, Germany and the U.K are the other major countries where needle coke and graphite electrode manufacturing is based. The world’s largest manufacturer of needle coke is Conoco Phillips (Phillips 66). There are only 2 companies in the world which derive needle coke from coal tar pitch. Both the companies are Japan based. As of 2017, the global EAF based steel production is expected to witness high growth rate. This has led to similar rise in demand of the graphite electrodes. Eventually, the rise in graphite electrode demand is expected to trigger the demand for needle coke.

The key players present in this market are: Indian Oil Corporation (IOC), Sinopec Shanghai Petrochemical Company Ltd., Graphite India Ltd, Phillips 66, Mitsubishi Chemical Corporation, and Sea-Drift Coke LP among others.

The needle coke are premium types of coke that are similar to delayed coke with high graphitization. In terms of grade, the needle coke market is segmented into base premium, intermediate premium and super premium needle coke.

The base premium needle coke has the highest coefficient of thermal expansion (CTE) which is less than 0.65 (10-6/ºC). Since the CTE influences the material behavior, it is desirable that the CTE should be less than 0.5 (10-6/ºC) to be able to operate at higher temperatures. The xylene density is close to 2.11 g/cm3. The xylene density for base premium type shows that the coke has been calcined at lower temperature. The sulfur content is less than 0.6% and hydrogen content is in the range of 0.035-0.055%.

The intermediate premium coke has the CTE less than 0.5 (10-6/ºC). This coefficient makes the intermediate type operable at higher temperatures. The xylene content is 2.12 g/cm3 and hydrogen content is similar to base premium type.

The super-premium needle coke has sulfur content less than 0.4% with similar hydrogen content as of base and intermediate types. The coefficient of thermal expansion is less than 0.4 (10-6/ºC) Max and has the xylene density at 2.15 g/cm3. World’s biggest manufacturers of needle coke also have super premium needle cokes with CTE as low as 0.1 (10-6/ºC) Max. Therefore, for high grade steel and electrode production, the super-premium needle coke market was the highest globally in terms of volume in 2016. The market is expected to remain highest for the forecast period from 2017 – 2025.

Based on type, the market is segmented into oil & gas and coal tar pitch derived. Needle coke are the major heating elements used in an electric arc furnace (EAF) for steel making. Scrap from old cars or appliances are melted to form steel. The EAF steel furnace requires high quality coke for graphite electrode manufacturing. The demand from steel industry for specialty cokes is increasing for UHP (Ultra High Power) EAF to produce steel. Globally, there is a huge demand for aluminum due to its vast consumption in automobiles, heavy equipment and machineries, aircraft amongst others. Graphitized cathodes are used in aluminum production and graphite electrodes are used in steel production. Thus, graphitization of electrodes in metal production has led to high demand for needle coke globally.

Graphite electrodes are also produced from coal tar pitch (CTP). The CTP is used as a impregnating and a binding agent to increase the strength and density of electrode. The largest consumer of CTP is the aluminum industry. It is closely followed by the graphite industry. By volume, the share of CTP in graphite electrode is more than 38% and the rest is needle coke (or calcinised pet coke – CPC).

Production of needle coke from petroleum is similar to conventional delayed coker unit. In a refinery, any stream with lowest sulfur content can be considered as a feed for needle coke production. Slurry oils from FCC (Fluid Catalytic Cracking) and derivatives of tar from cookeries are also considered for needle coke.

In the graphite electrode manufacturing needle coke is a major constituent. Needle coke accounts for almost 40% of the cost of manufacturing of graphite electrode. Needle coke is a derivative of crude oil and coal tar. Its major application is in the graphite electrode industry. The graphite electrodes in turn are used in manufacturing of steel and aluminum. Needle coke is used as consumable in the production of graphite electrode and cathode electrode. The premium coke is able to carry high current even at low voltage for manufacturing steel and other non-ferrous metals through electro arc furnace (EAF) and Laddle Furnace route.

Steel industry is the highest ranked user of needle coke for their production. Needle coke provides electrical and thermal conductivity, mechanical strength, thermal shock resistance, machinability and thermal expansion. Needle coke is also used in manufacturing of lithium ion batteries, electric cars and some intrinsic parts of mobile phones. Cathode required in smelting of aluminum is also manufactured from needle coke.

Global needle coke manufacturing is concentrated in the U.S., Japan and China, majorly. Conoco Phillips from the U.S. is the largest manufacturer/producer of needle coke. The coal tar pitch derived needle coke has only two producers in the world. Mitsubishi Chemicals and C-Chem are those two companies from Japan.

One of the major concerns for graphite electrode manufacturers and suppliers is that the availability of needle coke is limited and sometimes the waiting period is over one year. This dampens new capacity addition in graphite electrode industry. In Japan, an AGOT (Atcheson Graphite Ordinary Temperature) graphite is used as an insulator in nuclear reactors even at temperature below 1 K (kelvin). This property is useful in controlling chain reaction of uranium and thorium that are used in electricity production.  

Needle coke availability is scarce in the global market and its production is controlled by 7-10 players in the U.S and Japan. There is a direct relation between needle coke processes with crude oil prices. With the fluctuation in crude oil prices, the needle coke manufacturers are approaching graphite electrode players for the revision of prices. Asia Pacific region is the largest consumer of needle coke which is followed by Middle East & Africa. China is the largest importer of needle coke.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Needle Coke market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Needle Coke market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Needle Coke market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Needle Coke market?
• Which is the largest regional market for Needle Coke market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Needle Coke market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Needle Coke market worldwide?