March 28, 2020
Needle Coke

Needle Coke Market is gaining huge growth in upcoming years: Credence Research

The market volume of needle coke is expected to reach 1,350.3 kilotonnes by 2025, increasing to CAGR by 5.1 per cent from 2017 to 2025.

Increasing demand from the end-use industry, such as steel, is the key driver of market growth. Steel is produced using two methods: BOF (Basic Oxygen Furnace) and EAF (Electric Arc Furnace). Although BOF is much stronger than the steel-making EAF route, the EAF route is expected to be out of BOF power in the future due to factors such as reduced environmental emissions, extreme high-temperature operations, less facility space and high production output with fewer inventories. Overall operational expenditure is much lesser than BOF steel making route.

The EAF route has led to a global growth in the market for needle coke. Higher steel production through the EAF route and consolidation of graphite producers are likely to boost the needle coke market globally in the coming years. Since 2015, with fluctuations in oil prices, consolidation is expected to lead to an improvement in needle coke prices. Needle coke is primarily a crude oil derivative. The price of crude oil therefore plays an important role in the determination of graphite electrodes and correspondingly in the price of needle coke.

Higher steel production in China until 2016, followed by its unprecedented dumping in other countries, has led to undue pressure on graphite electrode prices. This directly affected the prices of needle coke as there is a direct link between steel production via the EAF route, graphite electrodes and needle coke prices.

Get sample copy of report here: https://www.credenceresearch.com/sample-request/58868

In the past couple of decades, there has been positive co-relation between crude oil and graphite electrode price. The crude oil price has seen a high of US$ 150/barrel to a low of US$ 20/barrel. This has eventually resulted in needle coke price variation as US$ 2,200/ton in FY08-09 to US$ 4,350/ton in FY14-15 to a low of US$ 450/ton in 2016. In 2017, the prices have again risen to US$ 3,200/ton.

Major factors seen in the sudden rise are: shutting down of Chinese steel industries due to environmental concerns and high supply of needle coke in these nonfunctional steel plants, high dumping rate of needle coke since China is the largest market for needle coke in terms of annual import, production and consumption. These reasons have affected global needle coke market value chain. The needle coke manufacturers were finding it difficult to meet the demands from graphite electrode manufacturers. Though the prices have risen to normal levels, there is still skepticism in terms of availability of needle coke as there is high waiting period in terms of availability.

The key players, developers, suppliers and service providers are: Indian Oil Corporation (IOC), Phillips 66, Mitsubishi Chemical Corporation, Sea-Drift Coke LP, C-Chem Co. Ltd., Boatailong NewCo. Ltd., Graphite India Ltd, HEG, Petroleum Coke Industries Co. Ltd., Tokai Carbon, Nippon Carbon, SEC, Sinopec Shanghai Petrochemical Company Ltd., and JXTG Holdings, Inc.

On the basis of grade, the global needle coke market is categorized into following segments:

  • Base Premium
  • Intermediate Premium
  • Super Premium

On the basis of type, the global needle coke market is categorized into following segments:

  • Petroleum Derived
  • Coal Tar Pitch Derived

On the basis of end-user, the global needle coke market is categorized into following segments:

  • Steel Industry
  • Aluminum Industry
  • Nuclear Power
  • ‘Others’ (Lithium Battery, Aerospace, Electric Carbon Brush, etc.)

Key Trends:

  • Rising demand from end-use industry
  • As a thumb rule in steel production, approximately 3kg of graphite electrode is used for the production of a ton of steel. Equivalent amount of needle coke is used for the production of graphite electrodes

Get sample copy of report here: https://www.credenceresearch.com/sample-request/58868

About Credence Research
Credence Research is a worldwide market research and counseling firm that serves driving organizations, governments, non-legislative associations, and not-for-benefits. We offer our customers some assistance with making enduring enhancements to their execution and understand their most imperative objectives.

Media Contact
Name: Chris Smith
Address: 105 N 1st ST #429,
SAN JOSE, CA 95103 US
(US/CANADA) Ph.: +1-800-361-8290
E-mailsales@credenceresearch.com

Leave a Reply

Your email address will not be published. Required fields are marked *