Needle Coke Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Needle Coke Market is projected to expand from USD 5.39 Billion in 2025 to USD 8.71 Billion by 2031, registering a CAGR of 8.33%. Distinguished by its acicular crystalline structure, high electrical conductivity, and low coefficient of thermal expansion, needle coke is a premium carbon material derived from petroleum or coal. It functions as a critical raw material for the production of graphite electrodes used in electric arc furnace (EAF) steelmaking and synthetic graphite anodes for lithium-ion batteries. The market is primarily driven by the global push for decarbonization, which promotes the adoption of EAF technology over traditional blast furnaces, and the escalating demand for electric vehicles. Data from the World Steel Association indicates that electric arc furnaces contributed 29.1% to global crude steel output in 2024, underscoring the industrial sector's continued reliance on this material for green steel production.

However, market expansion faces a significant hurdle due to the volatility of feedstock prices, particularly for low-sulfur decant oil and coal tar pitch. Because needle coke production is heavily reliant on these specific by-products, supply constraints or price fluctuations in the crude oil and coal markets can severely disrupt production costs. This economic unpredictability complicates the establishment of long-term supply agreements and deters potential capital investment in new processing facilities. Consequently, these factors restrict the market's capacity to scale operations rapidly in response to surges in demand, limiting overall growth potential despite strong downstream needs.

Market Drivers

The escalating demand for electric vehicle (EV) battery anodes is a major catalyst for the global needle coke market, as the material is a crucial precursor for synthetic graphite known for its consistency and cycle life in lithium-ion batteries. As automotive manufacturers rapidly scale production to achieve electrification goals, the consumption of battery-grade needle coke has intensified to bolster the expanding energy storage supply chain. According to the International Energy Agency in May 2025, global electric car sales rose by 35% year-on-year in the first quarter of 2025, highlighting the sharp increase in downstream demand for essential battery materials. This trend is further supported by supply chain metrics; for example, GrafTech International reported in February 2025 that its sales volume for the full year 2024 grew by 13% compared to the previous year, reflecting the material's growing necessity in energy transition applications.

Concurrent with the EV boom, the increasing adoption of electric arc furnace (EAF) steelmaking is fundamentally transforming market dynamics, with needle coke being the essential raw material for the graphite electrodes used in these furnaces. This transition is largely driven by global efforts toward sustainable green steel, where EAF technology provides a lower-carbon alternative to traditional blast furnace methods. Data from Global Energy Monitor in July 2024 reveals that approximately 93% of newly announced steelmaking capacity worldwide utilizes the EAF production route, signaling a massive structural shift in the industry. This widespread pivot ensures a sustained and growing requirement for premium needle coke to produce the ultra-high power electrodes necessary for efficiently melting steel scrap and direct reduced iron.

Market Challenges

The volatility of feedstock prices, particularly for low-sulfur decant oil and coal tar pitch, presents a substantial barrier to the stability and growth of the needle coke market. Since the manufacturing of needle coke is inextricably linked to these by-products of crude oil refining and coal coking, price instability in the broader energy markets immediately impacts the cost structure of production. This unpredictability creates a high-risk environment where manufacturers struggle to maintain consistent pricing models, complicating the negotiation of long-term supply agreements with buyers in the steel and battery sectors. As a result, this financial uncertainty discourages capital investment in new processing capacities, directly limiting the market's ability to scale operations efficiently.

This constraint on supply chain stability has a measurable negative impact on the expansion of downstream industries that drive the demand for needle coke. High and erratic input costs often compel end-users to scale back production, thereby reducing the immediate requirement for graphite electrodes and raw materials. According to the World Steel Association, global steel demand was projected to contract by 0.9% in 2024, a decline significantly attributed to the sustained pressure of elevated production costs and economic volatility. This contraction in the primary end-use sector demonstrates how feedstock instability effectively hampers the overall momentum of the needle coke market.

Market Trends

Strategic vertical integration between coke producers and end-users is fundamentally altering the market structure, driven by the need to secure stable feedstock amidst volatile energy prices. Major conglomerates are increasingly consolidating the supply chain by linking steel manufacturing by-products directly to needle coke processing and subsequent synthetic graphite anode production. This model protects manufacturers from external raw material fluctuations and ensures consistent quality for battery-grade applications. For instance, The Korea Economic Daily reported in October 2025 regarding the article 'POSCO Future M lands $470 mn anode deal' that POSCO Future M is aggressively expanding its synthetic graphite production capacity to over 18,000 tons by the end of 2025, utilizing internally sourced coal tar from its parent company’s steel operations to anchor this independent supply chain.

Simultaneously, the market is witnessing a decisive shift towards the production of super-premium low-sulfur coke grades tailored for Ultra-High Power (UHP) graphite electrodes. As steelmakers transition to high-efficiency electric arc furnaces (EAF), the operational stress placed on electrodes requires coke with superior crystalline structures and minimal impurities to prevent thermal fracturing. This trend is compelling coke manufacturers to upgrade their technologies to deliver these specialized, high-margin specifications rather than standard grades. According to Graphite India Limited’s May 2025 'Earning Presentation', approximately 100 million tonnes of new EAF capacity is expected to be added globally over the next 2 to 3 years, creating a critical structural requirement for these high-performance raw materials to support cleaner steelmaking technologies.

Key Players Profiled in the Needle Coke Market

• Mitsubishi Chemical Holding Corporation
• Indian Oil Corporation
• Phillips 66
• Sumitomo Chemical Company
• JXTG Nippon Oil & Energy Corp
• Asbury Carbon Inc.
• Graphite India Ltd.
• HEG Limited
• C-Chem Co. LTD.
• Petroleum Coke Industries Company K.S.C.

Report Scope

In this report, the Global Needle Coke Market has been segmented into the following categories:

Needle Coke Market, by Product Type:

• Petroleum Based v/s Coal Based

Needle Coke Market, by Product Grade:

• Intermediate
• Premium
• Super Premium

Needle Coke Market, by Application:

• Graphite Electrodes
• Lithium-Ion Batteries
• Specialty Carbon
• Rubber Compounds
• Others

Needle Coke Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Needle Coke Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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