Needle Coke Market Overview 

The Needle Coke Market has witnessed a steady rise in demand over the past decade, driven by its critical role in high-performance graphite electrodes and lithium-ion batteries. Valued at 2.23 million metric tons in 2025, the market is projected to grow from 2.56 million metric tons in 2026 to reach 5.13 million metric tons by 2031. 

Needle coke is a high-quality carbon material derived from petroleum and coal-tar pitch, known for its low coefficient of thermal expansion and high crystallinity. The needle coke market size continues to expand, reflecting the interplay of rising industrial activity, feedstock limitations, and evolving energy transition goals across key regions. 

Key Trends in the Needle Coke Market 

Expansion of EAF Steel Capacity 

The global steel industry is increasingly adopting electric-arc-furnace technology to reduce carbon emissions and improve raw material flexibility. EAF installations now account for a substantial portion of world steel production, and planned expansions will further increase the demand for ultra-high-power graphite electrodes. 

Growth of Lithium-Ion Battery Manufacturing 

Lithium-ion batteries for electric vehicles are emerging as the fastest-growing application segment in the needle coke market. Global EV battery production is accelerating, with automotive OEMs establishing long-term agreements with synthetic graphite suppliers derived from needle coke.  

Regulatory Push and Scrap Steel Utilization 

Policies in China and the European Union are promoting higher scrap utilization in steel production. China’s energy and carbon reduction plans and the EU’s revised Industrial Emissions Directive push steelmakers toward EAF and scrap-intensive operations.  

Feedstock Supply and Refinery Upgrades 

The quality and availability of decant oil significantly influence needle coke production. Recent refinery upgrades in North America and the Middle East have increased the production of low-sulfur decant oil suitable for high-purity needle coke.  

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Market Segmentation 

By Product Type: 

  • Petroleum-Based Needle Coke 

  • Coal-Tar Pitch-Based Needle Coke 

By Application: 

  • Graphite Electrodes 

  • Lithium-Ion Batteries 

  • Other Applications 

By Geography: 

  • Asia-Pacific 

  • China 

  • India 

  • Japan 

  • South Korea 

  • Rest of Asia-Pacific 

  • North America 

  • United States 

  • Canada 

  • Mexico 

  • Europe 

  • Germany 

  • United Kingdom 

  • France 

  • Italy 

  • Russia 

  • Rest of Europe 

  • South America 

  • Brazil 

  • Argentina 

  • Rest of South America 

  • Middle-East and Africa 

  • Saudi Arabia 

  • South Africa 

  • Rest of Middle-East and Africa 

For a more tailored understanding, view the localized Japanese edition alongside the global market breakdown - https://www.mordorintelligence.com/ja/industry-reports/needle-coke-market?utm_source=premiebook  

Key Players in the Needle Coke Market 

  • Baosteel Group – A major Chinese state-owned producer, supplying high-quality petroleum needle coke for electrodes. 

  • ENEOS Corporation – Japanese specialty carbon manufacturer with a focus on synthetic graphite for battery applications. 

  • GrafTech International – North American producer offering needle coke for ultra-high-power electrodes. 

  • Mitsubishi Chemical Group Corporation – Supplies specialty needle coke for both steel and battery sectors. 

  • Phillips 66 Company – U.S.-based operator leveraging advanced coking technologies to meet purity and crystallinity standards. 

Conclusion 

The Needle Coke Market is poised for sustained growth over the forecast period, driven by EAF steel expansion and the rapid rise of lithium-ion battery production. Tight feedstock availability, regulatory requirements, and competitive pressures continue to shape market dynamics, making strategic supply management and capacity planning crucial for producers. 

With rising needle coke market size, increasing market share for integrated producers, and strong demand trends, the needle coke market forecast remains positive, offering clear growth opportunities for investors, producers, and industrial end-users alike.