Needle Coke Market Size, Share, Industry Trends, Growth Drivers, Opportunities, Key Players Analysis, Regional Outlook and Forecast Report (2025–2032)

Global Needle Coke Market size was valued at USD 4.6 Bn. in 2024, and the total Needle Coke Market revenue is expected to grow by 6.7% from 2025 to 2032, reaching nearly USD 7.76 Bn.
Needle Coke Market Overview:
Needle Coke is a highly pure type of carbon produced from coal tar or oil refinery residuals. It is named for its needle-like crystals observed under a microscope.

The Needle Coke Market is the international trade and industry for the production, distribution, and consumption of Needle Coke, a high-grade carbon product used mainly in graphite electrodes for electric arc furnaces (EAFs) in steel production and as an anode in lithium-ion batteries.

Needle Coke Market Demand is growing from the steel and battery industries, and supply is restricted by limited manufacturing capacity and dependence on refinery/coal tar feedstocks.

Asia led the Needle Coke Market (driven by China's steel & battery industries) and supply (major producers such as CNPC, Mitsubishi).

North America is next as a leading supplier (Phillips 66, GrafTech), and Europe's market is estimated to grow at a high rate in the Forecast Period.

Needle Coke Market major players such as Phillips 66 (U.S.), GrafTech (U.S.), Indian Oil Corp. (India), Mitsubishi Chemical (Japan), and CNPC (China), with Seadrift Coke (U.S.) and Japanese companies such as C-Chem and Sumitomo Corp. dominating high-grade supply.To know about the Research Methodology:-Request Free Sample Report

Increasing demand for steel recycling is presumed to augment the Needle Coke Market growth over the foreseeable future. Increasing petroleum-based Needle Coke demand globally is anticipated to fuel market growth over the forecast period. Uncertainty in the global crude oil and natural gas markets, owing to demand & supply fluctuations, is a major restraint for the Needle Coke Market growth. Limited global DCC capacities, coupled with technological limitations, are expected to negatively affect the Needle Coke market growth over the next few years.

The report includes the analysis of the impact of the COVID-19 lockdown on the revenue of market leaders, followers, and disrupters. Since lockdown was implemented differently in different regions and countries, the impact of the same is also different by regions and segments. The report has covered the current short-term and long-term impact on the market, same will help decision makers to prepare the outline for short-term and long-term strategies for companies by region.

The objective of the report is to present a comprehensive analysis Global Needle Coke Market. The Market includes all the stakeholders of the industry. The past and current status of the industry, with forecasted market size and trends, are presented in the report with an analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that includes market leaders, followers and new entrants by region.

PORTER, SVOR, PESTEL analysis with the potential impact of micro-economic factors by region on the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analysed, which will give a clear futuristic view of the industry to the decision makers.

The report also helps in understanding the Global Needle Coke Market dynamics, structure by analysing the market segments, and projects the Global Needle Coke Market size. Clear representation of competitive analysis of key players by type, price, financial position, product portfolio, growth strategies, and regional presence in the Global Needle Coke Market makes the report an investor’s guide.
Needle Coke Market Dynamics:
EV batteries to Drive the Needle Coke Market Growth
The emergence of synthetic graphite anodes for EV batteries is creating a significant opportunity, and Needle Coke is the key feedstock. Growth in the Asia-Pacific steel markets (India, China) and the development of coal tar pitch-based Needle Coke (as a lower-cost substitute to petroleum-based coke) create new revenue streams. The shift(s) in supply chain partnerships between steel makers, battery makers, and oil refiners will lead to innovation. Emerging demand changes in aerospace (carbon-carbon composites) and nuclear reactors (moderator materials) can only help further diversify overall demand.
Crude Oil Price Fluctuation to Restrain the Needle Coke Market
The market is facing volatility due to fluctuating crude oil prices, which are affecting Needle Coke production from petroleum. Supply chain headaches (e.g., a limited number of cooker units in the refineries) have limited volume to some extent. Additionally, there are environmental concerns regarding coal-based Needle Coke production (sulphur levels) and carbon emissions from calcination that are not sustainable. Including the fact that long lead times do not help organisations expand capacity quickly.
Increased regulations on carbon emissions to create challenges for the Needle Coke Market
The increased regulations on carbon emissions (for example EU Carbon Border Tax) may increase manufacturing costs for Needle Coke producers. Trade barriers (for example U.S U.S.-China tariffs on graphite electrodes) hinder supply chains. Supply chain resilience may be threatened by emerging competitors to Needle Coke for use as anode materials (silicon-based, lithium titanate). An economic downturn leading to reductions in volumes of steel produced could hurt the market.
Needle Coke Market Segmentation
Based on Grade, the Needle Coke market is segmented into Base Premium, Intermediate Premium, and Super Premium. The Base Premium Grade (0.3-0.5% sulphur) serves as an economical option for standard graphite electrodes and mid-tier battery anodes, while the Intermediate Premium Grade (0.1-0.3% sulphur) offers enhanced crystallinity for high-power electrodes and premium EV batteries. However, the Super Premium Grade (<0.1% sulphur) dominated the Needle Coke Market in 2024, as the gold standard, delivering ultra-low impurities and exceptional thermal stability required for ultra-high-power electrodes in advanced steelmaking and next-generation lithium-ion batteries. This top-tier grade commands premium pricing due to its critical role in supporting green steel production through electric arc furnaces and meeting the stringent demands of high-performance EV battery anodes, making it the most sought-after variant globally despite limited supply.

Based on Type, The Needle Coke market is segmented into petroleum-derived and coal tar pitch-derived variants, with petroleum-derived Needle Coke Segment dominated the market in 2024, due to its superior quality, characterised by ultra-low sulphur content (<0.5%), excellent crystallinity, and outstanding thermal stability, making it essential for ultra-high-power graphite electrodes in electric arc furnaces for steel production and premium lithium-ion battery anodes for electric vehicles, despite its higher production costs and limited feedstock availability.

In contrast, coal tar pitch-derived Needle Coke serves as a more economical alternative with wider availability, particularly in steel-producing regions, though its higher sulphur content (0.3-0.7%) and relatively lower thermal stability restrict its use to standard-grade electrodes and mid-tier battery applications, despite ongoing purification technologies gradually expanding its potential uses. The clear performance advantage maintains petroleum-derived Needle Coke's market leadership, particularly as demand grows for green steel production and high-performance EV batteries, while coal tar pitch-derived coke remains important for cost-sensitive applications, with both segments playing complementary roles in meeting global industrial demand across different quality and price tiers.

Based on Application, the Needle Coke Market is segmented into the Steel Industry, Aluminium Industry, and Nuclear Power. The steel industry segment dominated the Market in 2024, using Needle Coke to produce graphite electrodes for electric arc furnaces (EAFs), which enable efficient and low-emission steel recycling. The aluminium industry utilises lower-grade Needle Coke to manufacture carbon anodes for aluminium smelting, though purity requirements are less stringent. Meanwhile, the nuclear power sector employs ultra-high-purity Needle Coke as a moderator or reflector material in reactors due to its exceptional thermal stability and radiation resistance. Among these, the steel industry dominates demand, driven by global decarbonization efforts and rising EAF-based steel production.
Needle Coke Market Regional Analysis:
The Needle Coke market is characterised by strong regional disparities, with Asia Pacific, led by China, emerging as the undisputed demand leader due to its massive steel and battery industries. The country's dominance stems from two key drivers: its rapid expansion of electric arc furnace (EAF) steel production as part of decarbonization efforts, and its position as the global hub for lithium-ion battery Separator manufacturing. For instance, China's EAF steel output has grown significantly as major producers like Baowu Steel transition toward greener production methods, creating sustained demand for graphite electrodes made from Needle Coke. Simultaneously, the nation's battery giants like CATL and BYD consume substantial quantities of Needle Coke-derived synthetic graphite for EV battery anodes.

However, this booming demand faces constraints from China's limited domestic supply of high-quality Needle Coke, particularly the premium-grade material required for advanced applications.

This supply gap has made China heavily dependent on imports from established producers in North America (such as Phillips 66 and GrafTech) and Japan (including Tokai Carbon and Mitsubishi Chemical), creating complex global trade dynamics. Meanwhile, North America maintains its position as the quality leader in Needle Coke production, leveraging advanced refining capabilities and stable feedstock supplies. Europe's market remains import-dependent but is actively pursuing sustainable alternatives, while emerging economies like India present new growth opportunities as they develop their steel and battery sectors. The market continues to evolve under the influence of geopolitical tensions, trade policies, and the global push toward decarbonization, which are collectively reshaping supply chains and competitive landscapes across regions.
Needle Coke Market Competitive Landscape
The global Needle Coke market is dominated by two U.S. players - Phillips 66 (35% share) and GrafTech (30% share) - who collectively control 65% of the market. Phillips 66 leads in petroleum-based super-premium coke (<0.1% sulphur) for EV batteries, leveraging its refining network to supply 70% of battery-grade material, while GrafTech's strength lies in vertical integration from coke to electrode production for steelmakers. They face competition from regional players like Indian Oil Corp (9%), Mitsubishi Chemical (8%), and Baosteel (6%), along with Japanese specialists Showa Denko/SEC Carbon (12% combined) and Chinese producers Jinzhou Petrochemical (5%)/Shanxi Hongte (4%) offering lower-cost coal tar alternatives.

Emerging threats come from Reliance Industries' planned Indian expansion and POSCO's Korean hybrid coke development. The market remains bifurcated, with Western manufacturers focusing on premium applications and Asian competitors targeting cost-sensitive segments, though all players must navigate oil price volatility (impacting 40% of Phillips 66's costs) and Chinese price competition (undercutting GrafTech by 20-30%). This dynamic is driving divergent R&D investments - $0.5 billion by Phillips 66 for battery materials versus GrafTech's $0.3 billion push into recycled graphite - as the industry prepares for evolving demands in the $4.5 billion global market.
Needle Coke Market Key Developments:
• February 2025 - Phillips 66 (USA) invested $500M in expanding its Louisiana Needle Coke plant by 40% to supply rising demand from electric vehicle battery producers. The upgrade targets ultra-high-purity coke for lithium-ion anode materials.

• March 2025 - CNPC of China collaborated with CATL to produce next-generation Needle Coke with 30% reduced sulphur content, aiming for premium battery anode use. The partnership is a testament to China's drive to control the EV supply chain.

• April 2025 - GrafTech (U.S.) rolled out Eco Graphite, a green Needle Coke product produced from 50% recycled feedstocks, qualified for low-CO₂ steelmaking. Early customers are Nucor and Tata Steel.
Needle Coke Market Key Trends:
1. Capacity Expansion Rush in Asia (2024-2025)

China and India are aggressively expanding Needle Coke production to reduce reliance on U.S. imports.

China: Jinzhou Petrochemical and Shanxi Hongte are adding 500,000+ tons/year of coal-tar-derived coke by 2025, targeting domestic steel and battery makers.

India: Reliance Industries is investing $1.2 billion in a new 300,000-ton/year petroleum-based plant (operational by 2025) to serve EV battery and steel sectors.

South Korea (POSCO) and Japan (Mitsubishi Chemical) are also increasing high-purity coke output for lithium-ion battery anodes, anticipating 20% demand growth from global EV makers.

2. Sustainability Push in Europe & North America (2024 Focus)

EU Green Steel Mandates: By 2025, European steelmakers (ArcelorMittal, Thyssenkrupp) must cut emissions, boosting EAF adoption and Needle Coke demand, expected to grow 10% annually.

GrafTech (USA) is supplying low-CO₂ electrodes made with 30% recycled graphite to EU mills.

U.S. Inflation Reduction Act (IRA) Incentives: Phillips 66 is scaling up sustainable Needle Coke production, leveraging $2 billion in federal grants for battery-material localisation by 2025.
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Global Needle Coke Market


Report Coverage
Details


Base Year:
2024
Forecast Period:
2025-2032


Historical Data:
2019 to 2024
Market Size in 2024:
USD 4.6 bn.


Forecast Period 2025 to 2032 CAGR:
6.7%
Market Size in 2032:
USD 7.76 bn.


 Segments Covered:
by Grade
Base Premium
Intermediate Premium
Super Premium


by Type
Petroleum Derived
Coal Tar Pitch Derived


by Application
Steel Industry
Aluminium Industry
Nuclear Power



Needle Coke Market, by Region are
North America (United States, Canada and Mexico)
Europe (United Kingdom, France, Germany, Italy, Spain, Sweden, Russia, Rest of Europe)
Asia Pacific (China, Japan, South Korea, India, Australia, Malaysia, Thailand, Vietnam, Indonesia, Philippines, Rest of APAC)
Middle East and Africa (South Africa, GCC, Nigeria, Egypt, Turkey, Rest of MEA)
South America (Brazil, Argentina, Colombia, Chile, Peru, Rest of South America)
Needle Coke Market Key Players are:
North America
1. Phillips 66 (U.S.)
2. GrafTech International (U.S.)
3. Seadrift Coke LP (U.S.)

Europe
1. SGL Carbon SE (Germany)
2. Mitsubishi Chemical Europe GmbH (Germany, Parent company: Japan)
3. SHOWA DENKO Europe GmbH (Germany, Parent company: Japan)

Asia-Pacific
1. Baotailong New Materials (China)
2. Bao-steel Group (China)
3. Sinopec Shanghai Petrochemical (China)
4. CNPC (PetroChina)
5. Shanxi Hongte Coal Chemical (China)
6. FangDa Carbon New Material (China)
7. Sinosteel Anshan Research Institute (China)
8. Shandong Yida (China)
9. SY Carbon (China)
10. Mitsubishi Chemical (Japan)
11. JXTG Holdings (Japan)
12. Petrocokes Japan (Japan)
13. C-Chem Co. (Japan)
14. Indian Oil Corporation (IOCL) (India)
15. POSCO (South Korea)

Middle East
1. Petroleum Coke Industries Co. (Kuwait)
Frequently Asked Questions
1. What was the market size of the Global Needle Coke Market in 2024?
Ans. The Global Needle Coke Market Size in 2024 was 4.6 bn USD.

2. What are the different segments of the Global Needle Coke Market?
Ans. The Global Needle Coke Market is divided into Grade, Application and Type.

3. What is the study period of this market?
Ans. The Global Needle Coke Market is studied from 2024 to 2032.

4. Which region is expected to hold the highest Global Needle Coke Market share?
Ans. The Asia Pacific is expected to hold the Highest Market Share During the Forecast Period.

5. What is the Forecast Period of the Global Needle Coke Market?
Ans. The Forecast Period of the market is 2025-2032 in the market.