The global needle coke market features a fragmented competitive landscape, Transparency Market Research (TMR) estimated. Phillips 66, JXTG Holdings, Inc., Mitsubishi Chemical Corporation, Baotailong New Material Co., Ltd., and Indian Oil Corporation Ltd. are the few key players in the global needle coke market. The key players are investing to improve their production capacity in order to cater to the growing demand for needle coke.
According to TMR, the global needle coke market is assessed to expand at a CAGR of 4.0% over the forecast period from 2018 to 2026. With this vigorous CAGR, the market is expected to attain a value of US$5.18 bn by 2026-end. In terms of volume, the global needle coke market is expected to grab the value of 1.43 million tons by 2026-end.
Growing Demand from End-Use Industries to Propel Needle Coke Market’s Growth
Needle coke has extensive applications across manufacturing the graphite electrodes, which is mainly used in the steel industries. Additionally, high demand from numerous industries due to wide-ranging applications of needle coke is driving growth of the global needle coke market. Further, the superior properties including low coefficient of thermal expansion, large particle size, and puffing rate are extending its applications across numerous areas such as melting scrap and in the electric furnace. These are expected to drive growth of the needle coke market in the coming years.
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Additionally, growing demand for steel recycling is a key factor responsible for the growth of the needle coke market. Moreover, growing stringent regulations on the use of traditional fuel coupled with growing awareness for the use of alternatives have boosted adoption of the lithium-ion batteries. This has spurred the demand for the needle coke substantially from last few years and is driving growth of the global needle coke market.
Demand & Supply Fluctuations to Impel Market’s Growth
The demand for petroleum-based needle coke is growing owing to its superior properties such as low electric resistance, less breakage and spalling, and coefficient of thermal expansion. However, uncertainty in production and demand for crude oil and natural gas led to the demand & supply fluctuations. This is one of the major restraint to the growth of the needle coke market. Additionally, lack of effective DCC capacities along with technological limitations is posing as a challenge to the needle coke market growth.
Nonetheless, growing demand for the carbon intermediates across the aluminium, steel, and foundry industries is estimated to offer lucrative opportunities for growth of the market over the forecast period. Further, a high-profit margin in the refineries due to technological advancement across the developing countries present in the Asia Pacific such as China, Brazil, and India are encouraging other companies in the market. In addition, the manufacturers do not require any additional utilities than the delayed coking (DCC) units; this lowers the investment and which is offering lucrative opportunities for growth in the coming years.