Needle Coke Market By Type (Petroleum-based, Coal-based) By Application (Graphite electrodes, Special carbon materials, Others) and Region - Global Forecast to 2026
27 April 2018
The needle coke market was valued at around US$ 2 Bn in 2017, and is expected to register a CAGR of 5.5%. The report offers in-depth insights, revenue details, and other vital information regarding the global needle coke market and the various trends, drivers, restraints, opportunities, and threats in the target market till 2026. The report also offers insightful and detailed information regarding the various key players operating in the global needle coke market, and their financials, apart from strategies, acquisitions & mergers, and market footprint. The global needle coke market is segmented on the basis of form type, application, and region.
Needle coke is a derivative of crude oil or coal tar. It is the primary material used for graphite electrodes in electric furnaces for steel production. There are two types of needle cokes namely coal-based and petroleum-based.
Around 66% of global steel is produced in basic oxygen blast furnaces (BOF) and the remaining 34% in electric arc furnaces (EAF). Though BOF currently is more widely used in the steel industry, EAF are expected to gain high traction in coming years, owing to factors such as less environmental impact, extreme high temperature operations, less facility space requirement, and higher production output with lower inventory. Needle coke is the main raw material used in making graphite electrodes to be used in EAF. Increasing demand for steel from other industries is expected to ensure sustainable growth for the global needle coke market in future. In addition, steel produced from EAF is made by recycling scrap metal, which is anticipated to increase demand for needle coke. In addition, Needle coke is also required for producing electrodes, which have finding wider applications such as in lithium-ion batteries, in the aluminum and aerospace industry, for use in nuclear furnaces, and others. Its properties including low electrical resistance, strong shock resistance, and good anti-oxidation ability makes it ideal for its use in ultra-high graphite electrodes, as nuclear reactor deceleration materials, and LIB anode materials. The aforementioned factors are expected to drive the growth of the market during the forecast period.
Uncertainties in crude oil prices since mid-2015 has led to volatility in prices of needle coke, since it is a direct derivative of crude oil. In addition, shortage of needle coke – a form of calcined petroleum coke – is exacerbating the ability of graphite electrode producers currently operating to increase production rates to meet rising demand. Needle coke represents approximately 40%–60% of the input cost of graphite electrode production. Nonetheless, consolidation of the top needle coke producers in the world is expected to improve profitability by curbing high cost of operations.
Technological and other advancements and increasing R&D activities by electrode manufacturers is expected to create new opportunities in terms of revenue for players operating in the global needle coke market over the forecast period
Market Analysis by Product Type:
On the basis of type, petroleum-based segment currently accounts for highest revenue share contribution as compared to coal-based segment, and is expected to register a CAGR of over 5% between 2017 and 2026. This is primarily attributed due to certain factors such as declining crude oil prices globally. Petroleum-based needle coke segment is expected to register highest CAGR, as it is high temperature resisting in steel production and relatively less harmful to environment, and more widely used.
Market Analysis by Application:
Among all the application segments, graphite electrode segment is projected to account for highest revenue share as compared to that of other application segment, and register a CAGR of over 5% over the forecast period, owing to increasing demand from steel manufacturing and steel recycling industries/plants. Needle coke is used for production of graphite electrodes, which are used in electric arc furnaces to produce steel from scrap metal/steel.
In addition, it has superior properties such as large particle size, low puffing rate, and low coefficient of thermal expansion, which is projected to fuel market growth over the forecast period.
Special Carbon Material segment accounts for the second highest revenue share primarily due to its numerous properties such as chemical inertness, thermal and mechanical strength, electrical and thermal conductivity (resistivity), reactivity, elasticity, light-weight, and resistance to aggressive radiation and chemicals.
Special carbon materials have various end-uses in industries such as chlorosodic electrodes, steel electrodes, anodes, and cathode blocks in aluminum industry, carbon blocks, Söderberg electrode paste, and refractory in blast furnaces, fuel cells, isolating carbon materials, nuclear graphite, graphite brushes, and carbon fibers.
Market Analysis by Region:
The market in Asia Pacific accounted for highest revenue share in the global needle coke market in 2016, and is expected to register a CAGR of over 5% between 2017 and 2026, owing to the presence of large number of raw material suppliers in the region. In addition, increasing mining activities for iron ore in emerging economies such as China, Japan, and India is another factor anticipated to boost demand for needle coke and in turn fuel growth of the Asia Pacific market over the forecast period. Moreover, China is a major exporter of needle coke across the globe, with countries such as Germany, Russia, and India being the major export destinations. This is another factor for the Asia Pacific region accounting for major revenue share in the global market in 2016.
The market in North America accounted for the second highest revenue share in the global needle coke market in 2016. Rising demand for needle coke from various end-use industries, especially from steel manufacturing and aerospace industries, coupled with increasing applications for needle coke are major factors driving growth of the North America needle coke market currently. The North America market is majorly export driven and export volumes of needle coke are comparatively much higher than that of imports. India and Russia are major export destinations for needle coke produced in countries in North America region.
Moreover, technological advancements in equipment used for manufacturing needle coke, coupled with recent discoveries in shale gas reserves in countries in the region are other major factors expected to boost demand for needle coke in the North America market over the forecast period.
Market Segmentation of Global Needle Coke Market:
Segmentation by type:
Segmentation by application:
- Graphite electrodes
- Special carbon materials
Segmentation by region:
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
- Shanxi Hongte Coal Chemical Co. Ltd.
- Fangda Carbon New Material Co., Ltd.
- Shanxi Meijin Energy Co., Ltd.
- Jinzhou Petrochemical Co., Ltd.
- Baotailong New Materials Co., Ltd.
- Sinosteel Corporation
- Indian Oil Corporation Limited
- ConocoPhillips Company
- C-Chem Co., Ltd.
- Seadrift Coke, L.P.
- JXTG Holdings, Inc.
- Sumitomo Corporation
- Mitsubishi Chemical Holdings Corporation
- 1 Chapter 1
- 1.1 Preface
- 1.2 Assumptions
- 1.3 Abbreviations
- 2.1 Report Description
- 2.1.1 Market Definition and Scope
- 2.2 Executive Summary
- 2.2.1 Market Snapshot, By Type
- 2.2.2 Market Snapshot, By Application
- 2.2.3 Market Snapshot, By Region
- 2.2.4 Prudour Opportunity Map Analysis
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