Global needle coke market is expected to grow at a significant CAGR in the upcoming period as the scope and its applications are rising enormously across the globe. Needle coke is a high value, premium grade petroleum coke exclusively used in the manufacturing of graphite electrodes of the very low coefficient of thermal expansion (CTE) for the electric arc heaters in the steel industry. It is crystalline and offers the properties needed for manufacturing graphite electrode.
The factors that are playing a major role in the growth of the market are the growing production of electric vehicles and the high demand in graphite electrodes and lithium-ion batteries. However, the high cost of graphite electrodes and the environment related concerns may restrain overall market growth in the years to come. Needle coke market is segmented based on product type, grade, application, and region.
Coal tar pitch and petroleum-derived are the product types that could be explored in needle coke in the forecast period. Petroleum-derived needle coke sector accounted for the substantial market share of needle coke and is estimated to continue its dominance in the years to come. Super premium (SP), intermediate (I), and premium (P) are the grades that could be explored in needle coke in needle coke industry in the forecast period. The super-premium sector accounted for the substantial market share of needle coke and is estimated to lead the overall market in the years to come.
The market may be categorized based on applications like specialty carbons, graphite electrode manufacturing, lithium-ion batteries, and others that could be explored in needle coke in the forecast period. The graphite electrode-manufacturing sector accounted for the substantial market share of needle coke and is estimated to lead the overall market in the years to come. The reason could be the rising use of needle coke in the graphite electrode manufacturing. In addition, lithium-ion batteries sector is estimated to grow at the fastest pace in the years to come.
Globally, Asia Pacific accounted for the substantial market share of needle coke and is estimated to lead the overall market in the years to come. The reason behind the overall market growth could be the rising demand for steel from several end-users, the growing investment in the steel sector, and the increasing automotive production in the developing countries. The developing countries like India and China are the major consumers of needle coke in the region.
Europe and North America are also estimated to have a positive influence on future growth. Europe is the second largest region with significant market share. However, North America is estimated to grow at the highest CAGR in the forecast period. The key players of needle coke market are Reliance Industries Limited, Essar Oil Ltd., Indian Oil Corporation Ltd., and GrafTech International Holdings Inc. These players are concentrating on inorganic growth to sustain themselves amidst fierce competition.