Needle Coke Market- Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Petroleum Based v/s Coal Based), By Product Grade (Intermediate, Premium, Super Premium), By Application (Graphite Electrodes, Lithium-Ion Batteries, Specialty Carbon, Rubber Compounds, Others), By Company, By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.39 Billion
CAGR (2026-2031)	8.33%
Fastest Growing Segment	Petroleum Based
Largest Market	Asia Pacific
Market Size (2031)	USD 8.71 Billion

Market Overview

The Global Needle Coke Market will grow from USD 5.39 Billion in 2025 to USD 8.71 Billion by 2031 at a 8.33% CAGR. Needle coke is a premium grade of petroleum or coal-based carbon distinguished by its acicular crystalline structure, high electrical conductivity, and low coefficient of thermal expansion. It serves as the critical raw material for manufacturing graphite electrodes used in electric arc furnace (EAF) steelmaking and synthetic graphite anodes for lithium-ion batteries. The primary driver supporting market growth is the global shift toward decarbonization, which necessitates the adoption of EAF technology over traditional blast furnaces, alongside the rising demand for electric vehicles. According to the World Steel Association, in 2024, electric arc furnaces accounted for 29.1% of global crude steel production, highlighting the sustained industrial reliance on this material for green steel manufacturing.

However, a significant challenge impeding market expansion is the volatility of feedstock prices, specifically for low-sulfur decant oil and coal tar pitch. Since needle coke production depends heavily on these specific by-products, supply constraints or price fluctuations in the crude oil and coal markets can destabilize production costs. This economic uncertainty often complicates long-term supply agreements and discourages potential capital investment in new processing capacity, thereby restricting the market's ability to scale rapidly in response to demand surges.

Key Market Drivers

The surging demand for electric vehicle (EV) battery anodes is a primary force propelling the global needle coke market, as this material serves as a vital precursor for synthetic graphite, which is favored for its consistency and cycle life in lithium-ion batteries. As automotive manufacturers aggressively scale production to meet electrification targets, the consumption of battery-grade needle coke has intensified to support the expanding energy storage supply chain. According to the International Energy Agency, May 2025, global electric car sales increased by 35% year-on-year in the first quarter of 2025, underscoring the rapid acceleration in downstream demand for critical battery materials. This upward trajectory is further evidenced by supply chain performance; for instance, according to GrafTech International, February 2025, the company's sales volume for the full year 2024 increased by 13% compared to the prior year, reflecting the material's growing indispensability in energy transition applications.

Simultaneously, the rising adoption of electric arc furnace (EAF) steelmaking is fundamentally reshaping market dynamics, as needle coke is the essential raw material for manufacturing the graphite electrodes required in these furnaces. This shift is heavily influenced by the global transition toward sustainable green steel initiatives, where EAF technology offers a lower-carbon alternative to traditional blast furnace methods. According to Global Energy Monitor, July 2024, nearly 93% of newly announced steelmaking capacity globally follows the EAF production route, signaling a massive structural shift in steel manufacturing infrastructure. This widespread industrial pivot ensures a sustained and growing requirement for premium needle coke to produce the ultra-high power electrodes necessary for melting steel scrap and direct reduced iron efficiently.

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Key Market Challenges

The volatility of feedstock prices, specifically for low-sulfur decant oil and coal tar pitch, constitutes a substantial barrier to the stability and expansion of the needle coke market. Because needle coke manufacturing is inextricably linked to these by-products of crude oil refining and coal coking, any price instability in the broader energy markets immediately disrupts the cost structure of production. This unpredictability creates a high-risk environment where manufacturers struggle to maintain consistent pricing models, complicating long-term supply agreements with buyers in the steel and battery sectors. Consequently, 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 growth of downstream industries that drive needle coke demand. High and erratic input costs often force 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 attributed significantly to the sustained pressure of elevated production costs and economic volatility. This contraction in the primary end-use sector illustrates how feedstock instability hampers the overall momentum of the needle coke market.

Key Market Trends

Strategic vertical integration between coke producers and end-users is fundamentally altering the market structure, driven by the necessity to secure stable feedstock amid 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 insulates manufacturers from external raw material fluctuations and ensures consistent quality for battery-grade applications. According to The Korea Economic Daily, October 2025, in the article 'POSCO Future M lands $470 mn anode deal', 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 forcing coke manufacturers to upgrade coking technologies to deliver these specialized, high-margin specifications rather than standard grades. According to Graphite India Limited, May 2025, in the '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.

Segmental Insights

The petroleum-based segment is currently positioned as the fastest-growing category within the global needle coke market due to its essential role in the production of graphite electrodes. This demand is largely propelled by the global shift toward electric arc furnace steelmaking, which is favored for its lower environmental impact compared to traditional blast furnaces. Additionally, the rapid expansion of the electric vehicle industry has intensified the requirement for synthetic graphite anodes, which utilize high-quality petroleum needle coke as a primary feedstock. These factors collectively ensure the sustained upward trajectory of this segment.

Regional Insights

Asia Pacific maintains a dominant position in the global needle coke market due to substantial demand from the steel and energy storage sectors. China and India drive this growth through extensive production of graphite electrodes, which are utilized in electric arc furnaces for steel manufacturing. Additionally, the region serves as a major manufacturing hub for lithium-ion batteries, where needle coke is a critical component for anode materials. The presence of established producers and rising industrial requirements in these economies support the continued market leadership of the region.

Recent Developments

• In September 2025, Epsilon Advanced Materials entered into a strategic agreement with Phillips 66 to secure a consistent supply of green and calcined needle coke. This collaboration was established to support the company's upcoming graphite active anode material manufacturing facility in North Carolina. Under the terms of the agreement, the supplier committed to providing the essential carbon feedstock from its Lake Charles refinery in Louisiana. This partnership underscored the critical importance of establishing localized supply chains for needle coke to meet the escalating demand from the electric vehicle and energy storage sectors, ensuring that the necessary raw materials are available for domestic battery production.
• In December 2024, Posco Future M achieved a significant technological breakthrough by successfully localizing the manufacturing of 300mm diameter ultra-high power graphite electrodes. This development addressed the domestic industry's historical reliance on imports for these critical components, which utilize high-grade needle coke as their primary raw material. The project, conducted in collaboration with government support, aimed to strengthen the national supply chain for essential carbon materials used in electric arc furnaces. By mastering this production technology, the company enhanced its ability to provide a stable supply of high-quality electrodes to steelmakers, thereby reducing supply chain vulnerabilities and expanding its presence in the advanced carbon materials market.
• In September 2024, Phillips 66 announced that its refineries in the United Kingdom and Louisiana had commenced the commercial production of a specialty petroleum coke. This new product was specifically engineered for use in lithium-ion battery anodes, serving as a critical precursor for electric vehicle batteries and consumer electronics. The initiative utilized the company’s proprietary processing technologies to create high-performance anode feedstocks derived from needle coke streams. This development positioned the energy company as a pivotal supplier in the battery materials supply chain, diversifying its portfolio beyond traditional steel market applications and reinforcing its strategic role in the evolving global energy transition.
• In February 2024, GrafTech International announced a strategic restructuring plan to address challenging market conditions within the global graphite industry. As part of this initiative, the company implemented the indefinite suspension of major production activities at its St. Marys facility in Pennsylvania. This operational adjustment was designed to optimize the manufacturer's global footprint and reduce fixed costs in response to softer demand for graphite electrodes, which are produced using petroleum needle coke. The decision highlighted the broader industry trend of aligning manufacturing capacity with fluctuating consumption patterns in the steel sector, ensuring the company maintained financial resilience while continuing to serve clients from its other international facilities.

Key Market Players

• 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.

By Product Type	By Product Grade	By Application	By Region
Petroleum Based v/s Coal Based	Intermediate Premium Super Premium	Graphite Electrodes Lithium-Ion Batteries Specialty Carbon Rubber Compounds Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Needle Coke Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 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
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE