Widespread Development Occurring in the Petroleum Industry Boosts Growth in Needle Coke Market
Coke is well-known for existing as a high-carbon content fuel, made by heating coal in the absence of air. This is mainly due to the presence of few impurities in its composition that makes coke a great option for providing highly efficient energy supply to different processes. Of all coke types, needle coke is a crystalline coke type mainly used to manufacture graphite electrodes. These electrodes are mainly used in the production of steel in an electric arc furnace.
Increasing Demand for Fuel Efficient Steel Production Boosts Growth in Market
Rising demand for efficient fuel production is majorly driving the global needle coke market. This is mainly due to the high efficiency provided by this fuel type. Moreover, with rapidly increasing urbanization and industrialization, the demand for fuels like needle coke too is stoking growth in the market. With widespread advancements occurring in the petroleum and energy production industry, the global needle coke market is predicted to showcase a splendid presence in the near future.
Several companies are pouring huge investments into this sector to develop coal tar pitch coke production. This also is a major factor driving the global needle coke market. Compared to coal tar pitch variety, the petroleum coke type has witnessed spectacular demand in recent times. The global needle coke market is expected to bode well in the next few years as the use of petroleum coke to make graphite rods for steel production increases.
High Production Costs Stunt Growth in the Needle Coke Market
However, in spite of these driving factors, the global needle coke market is hindered due to numerous reasons. A prime one is the fluctuation in supply of raw materials. Moreover, production of this needle coke might be expensive for those companies newly entering the market. This certainly spell an undesirable negative outlook on the global needle coke market. It might be difficult to set up coke production plants in remote and underdeveloped regions. Nonetheless, several companies are trying to expand their geographical horizons as well as regulating products costs. This could certainly offset most restraints affecting the global needle coke market.
In terms of geography, the global needle coke market is mainly spread across North America, South America, Asia Pacific, Europe, and the Middle East and Africa. Of these, Asia Pacific has dominated the market in recent times. This is mainly due to the presence of well known graphite electrode manufacturers in Asia Pacific, which need a regular supply of needle coke. A rising demand for quality batteries running on the lithium ion technology in China and India also drives the market in this region. Apart from Asia Pacific, other regions like the Middle East and Africa and Latin America are also expected to showcase splendid growth in the global needle coke market.
The global needle coke market depicts the presence of a highly competitive vendor landscape. This is mainly due to the presence of innumerable players operating in this sector. With an increase in the number of companies entering the needle coke market, the competition is likely to highly intensify. Phillips 66, Mitsubishi Chemical Corporation, JXTG Holdings, Inc., Baotailong New Material Co., Ltd., and Shanxi Hongte Coal Chemical Co Ltd., are key players operating in the global needle coke market.
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