Dublin, Jan. 27, (GLOBE NEWSWIRE) -- The "Needle Coke - Global Strategic Business Report" report has been added to ResearchAndMarkets.com's offering.
The global market for Needle Coke was estimated at US$4.1 Billion in and is projected to reach US$5.0 Billion by , growing at a CAGR of 2.8% from to . This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.
Needle coke is a premium grade of petroleum coke, characterized by its needle-like structure, high carbon content, low sulfur levels, and high electrical conductivity. It is primarily used in the production of graphite electrodes, which are essential components in electric arc furnaces (EAF) for steelmaking, lithium-ion battery anodes, and other high-performance applications in the chemical and metallurgical industries.
The importance of needle coke lies in its ability to withstand high temperatures, maintain structural integrity, and deliver excellent conductivity, making it an indispensable material in various high-temperature, energy-intensive processes. In steelmaking, graphite electrodes made from needle coke facilitate the efficient melting of scrap steel in electric arc furnaces, which have become the dominant technology in steel production due to their lower energy consumption and reduced emissions compared to blast furnaces.
How Are Technological Advancements Shaping the Needle Coke Market?
Technological advancements have significantly enhanced the production, processing, and application of needle coke, driving innovation across industries that rely on high-performance materials. One of the major developments is the improvement in refining processes, which have enabled more efficient production of petroleum needle coke. Refineries have optimized processes such as delayed coking and hydrocracking to produce higher yields of needle coke, with better control over impurities like sulfur and ash content. This has resulted in higher-quality needle coke that meets the stringent requirements of graphite electrode manufacturers and battery producers.
The development of coal tar pitch needle coke has further expanded the availability and application of needle coke. Advanced processing techniques have improved the quality of coal-based needle coke, making it suitable for use in both electrodes and battery anodes. While traditionally more limited in supply compared to petroleum needle coke, coal-based variants are now gaining traction as manufacturers seek to diversify their raw material sources, particularly in regions with abundant coal reserves. This diversification helps mitigate supply risks and stabilize pricing in the needle coke market.
Innovations in synthetic graphite production have also impacted the needle coke market, particularly in the growing field of lithium-ion batteries. Manufacturers are investing in technologies to enhance the performance of synthetic graphite anodes, such as surface modification and coating techniques that improve conductivity and cycle life. Needle coke`s high graphitization potential makes it a preferred raw material for synthetic graphite production, and advancements in anode technology have increased demand for high-purity, low-ash needle coke to meet the performance requirements of modern battery applications. These innovations not only expand the capabilities of needle coke but also align with broader trends toward sustainability, efficiency, and improved energy storage in high-growth industries.
What Are the Emerging Applications of Needle Coke Across Different Sectors?
Needle coke is finding expanding applications across various sectors, driven by its unique properties and the demand for high-performance materials. In the steel industry, needle coke is primarily used in the production of graphite electrodes for electric arc furnaces. As the global steel industry shifts towards electric arc furnace technology, which is more energy-efficient and environmentally friendly than traditional blast furnaces, the demand for needle coke has increased. Graphite electrodes made from needle coke are critical for achieving the high temperatures needed to melt scrap steel, making them essential for efficient steel recycling and production.
In the battery sector, needle coke plays a crucial role in the production of synthetic graphite anodes for lithium-ion batteries. Synthetic graphite derived from needle coke offers high purity, low expansion, and excellent conductivity, making it ideal for battery anodes. With the rise of electric vehicles (EVs), renewable energy storage, and portable electronics, the demand for lithium-ion batteries has surged, leading to a corresponding increase in the demand for needle coke. The performance and longevity of lithium-ion batteries depend heavily on the quality of graphite anodes, making needle coke a vital material in the transition toward clean energy technologies.
In the chemical and metallurgical industries, needle coke is used in high-temperature processes such as furnace linings, crucibles, and molds. Its thermal stability, low reactivity, and high carbon content make it suitable for producing high-quality refractory materials and specialized carbon products. Additionally, needle coke is used in nuclear applications, where its high purity and structural integrity under extreme conditions are critical for producing components like control rods and fuel elements.
The expanding applications of needle coke across these sectors highlight its critical role in supporting energy-efficient, high-performance, and sustainable solutions in industries like steel production, energy storage, and advanced materials manufacturing. As global demand for steel, electric vehicles, and renewable energy storage continues to rise, needle coke is set to play an increasingly important role in enabling technological advancements and sustainable growth.
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Article Summary
The needle coke market is in the process of a demand resurgence based both on Chinese demand for graphite electrodes and additional diversification into lithium ion battery anodes, driven by the market expansion of electric vehicles (EVs). This demand will likely show sustained growth for the foreseeable future with associated pricing support over the period.
There is a specific demand for ultra-premium, high purity needle coke from both applications, driven by a requirement to derive maximum in-situ performance from these materials. The two main ultra-premium needle coke precursors include high-temperature coal tar pitch (HT-CTP) and fluidised catalytic cracker decant oil (FCCDO), the latter enjoying market dominance (80%).
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Quality issues associated with HT-CTP relate to technical issues stemming from process origin, environmental concerns (carcinogenetic and emissions), and inconsistent quality. Quality issues relating to FCCDO are generally associated with heavier, higher sulphur crude oils and the competition (by the bunker fuel market) for sweeter crude oil downstream derivatives.
The search for consistent quality, high purity needle cokes may in future broaden the scope of potential precursors in line with the trend towards cleaner fuel technology (such as natural gas) over the medium-term period at least. Utilising natural gas as a source, gas-to-liquid (GTL) technology offers the automotive industry a cleaner source of liquid hydrocarbon fuels. With the benefit of these fuels being synthetic, their quality is less dependent on origin (as is much the case with crude oil).
This not only relates to the lighter automotive fuels, but additionally applies to the purity of the heavier residual waxy oil (C20+) streams. The lack of inherent contamination (thermally stable nitrogen and sulphur heterocycles, which have a detrimental effect on needle coke quality) makes this fraction an intriguing prospect. However, the additional lack of any inherent aromaticity would seem to be in contrast with historically desirable characteristics associated with needle coke precursors.
What is needle coke?
Needle coke is produced in a delayed coker from aromatic petroleum or coal tar heavy residues. They generally form as highly crystalline graphene-like carbons, exhibiting long-range microstructural order with minimal impurities (sulphur, nitrogen, and metals) and a low coefficient of thermal expansion (CTE). Historically, needle cokes have been used to produce graphite electrodes for steel smelting in an electric arc furnace (EAF). The advent of EVs has additionally diversified the scope of application for needle coke (inclusion in graphite anodes of lithium ion batteries).
Additionally, the needle coke market has utilised low sulphur vacuum residues (LSVR) and ethylene tar pitches (ETP) precursors, although they have mostly been associated with lower quality needle coke grades. Solvent refined coals (SRC) have been trialled at a pilot plant scale, but there is no evidence of any sustained commercial production. However, the two dominant ultra-premium needle coke precursors stem from the petroleum industry (FCCDO) and the coal blast furnace industry (HT-CTP).
These heavy liquid residuals are converted to solid coke and cracked distillates in a delayed coker unit (DCU) in the temperature range of 450-500°C (dependent on the thermal stability of the feedstock). Unlike other coke types, needle coke microstructural and crystalline order is particularly important. The aromaticity associated with most needle coke feedstocks infers a degree of thermal stability.
During polycondensation of higher molecular weight radicals, they form an intermediate phase (mesophase). The longer the mesophase remains within an optimal viscosity range, the greater the propensity to develop long-range microstructural order (sometimes referred to as the carbon 'blueprint'). The structural order on a micro-scale (10-6) translates to the crystalline scale (10-10). The crystalline order is that of graphene (sp2 hybridised orbitals) and essentially exists as layers of covalently bonded benzene sheets separated by interplanar spaces. The microstructural and crystalline order determine the electronic and CTE characteristics of both needle coke and consequently graphite electrodes.
Needle coke quality is generally classified into three quality grades (ultra premium, super premium and intermediate premium), the specifications of which are presented in Table 1.
The quality ascribed to needle coke grades is generally characterised by differences in microstructural order, crystalline order, CTE, and impurities. Higher quality needle coke grades are usually associated with larger diameter graphite electrodes. Petroleum-based needle cokes have historically dominated the market; however, all recent expansion initiatives in China are based on coal-tar needle cokes (which have historically been plagued by inconstant quality and problematic electrode graphitisation). A diagram showing highly ordered needle coke microstructure with parallel aligned porosity is shown in Figure 1.
Being a speciality and derived from a by-product, needle coke exhibits a concentrated supply structure. There are around 10 major producers globally, while most refineries do not have delayed cokers (especially those suitable for needle coke production) or calciners. Following delayed coking (450-480°C), the green needle coke is calcined (°C) to reduce volatiles and promote microstructural densification.
The science associated with the needle coke value chain is complex and beyond the scope of this discussion, which merely serves to introduce the topic.
Needle coke: a resurgent market
Over the last decade, the appetite for needle coke has diminished, given the abundance of scrap steel emanating from China. This demand decline has exerted downwards pressure on needle coke pricing to under $ per tonne. However, in -, there has been a resurgence in the demand for needle coke and associated pricing, which, although sluggish, has rebounded with sustained growth. The demand for needle coke is witnessed by the substantial ramp-up of Chinese EAF capacity.
The demand has further been impacted by market diversification based on the exponential growth of the EV automotive sector (needle coke is utilised for the production of synthetic graphite anodes in lithium ion batteries). Competition as an EV battery graphite source is provided by natural graphite, which, while commanding a lower price, is also associated with lower comparative quality (higher natural impurities). The sustained requirement for graphite for the EV market is demonstrated by the fact that the Tesla Model S contains up to 85 kg of graphite.
While the growth of the EV market has been exponential, it has been off a small base. Growth of the EV market is expected to command a 30% automotive market share by . To demonstrate the expected impact of this sector (on needle coke demand), a 6% EV growth would relate to a 250 kilo-tonne per annum (ktpa) demand increase. The comparative demand from the graphite electrode market has historically remained stable at approximately one million tpa.
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