Global Needle Coke Market Size, Operation Situation, and Current & Future Development Trends (2018-2026)
Needle Coke Market: A Rising Demand for Steel Opens New Horizons
The needle coke market is expected to witness major growth in the near future, thanks to a growing demand for steel. The market is expected to register 4.0% CAGR during 2018-2026 and reach US$ 5.18 bn by 2026 end. Needle coke is primarily used for the manufacturing of graphite electrodes for EAF steel. It is a highly crystalline coke and is made using fluid catalytic cracking decant oil in its initial stages as a petroleum derived product. On the other hand, coal tar needle coke is obtained as a byproduct of low ash cooking and distillation process. The distillation process enables manufacturers to turn coal tar into various intermediate chemicals. The growing demand for steel, cost-effectiveness of needle coke products, and growing advances in the field are expected to register steady growth for the needle coke market in the near future.
Needle Coke Market: Petroleum-Based Needle Coke Emerges as a Clear Favorite
The needle coke market is divided into coal tar pitched and petroleum derived. Among these, the petroleum based product is expected to drive growth of the needle coke market. The segment is witnessing a robust demand, despite the presence of only a handful global suppliers. The growth in the segment is driven by growing demand from China and India, major suppliers of Steel. Additionally, essential qualities of needle coke such as puffing rate, low coefficient of thermal expansion, and large particle size are advantageous to end-industries. This is further expected to drive growth for the needle coke market in the near future. The products offer less breakage, low electric resistance, and coefficient of thermal expansion.
Needle Coke Market: Lithium-ion Batteries Pave Way for Growth
The needle coke market is segmented on the basis of application into lithium-ion batteries, graphite electrode, and others. Among these, the needle coke market is expected to witness the highest demand in graphite electrodes. These are growing in demand as demand in Asia Pacific continues to rise. Rising infrastructural development, growing manufacturing in Asia Pacific, and China as a major producer of needle coke are expected to drive it further. Additionally, the lithium-ion batteries segment is expected to witness healthy growth, thanks to growing demand for smartphones and various wearable devices. However, the graphite electrodes segment is expected to dominate the market during the forecast period.
Needle Coke Market: Quality Products Rising in Demand
The needle coke market is growing in applications and due to rise in quality as well. For example, the needle coke market is divided into premium, intermediate, and super premium based on grade. Among these, the super-premium segment is likely to witness the highest growth and register a significant CAGR during the forecast period. The high quality of these products and growing applications in consumer electronics and infrastructure developments is expected to drive the needle coke market.
The needle coke market also faces certain challenges and limitations in the near future. The market is expected to register significant growth in petroleum-based products. However, the petroleum products face extreme political and economic instability. Recent collapse in Venezuela is expected to add to the woes of players in the needle coke market. Additionally, DCC capacities are also expected to witness several limitations in the near future. However, the needle coke market will still register a steady growth as several oil exploration initiatives are making way for less dependence on instable oil regions.