Petroleum Needle Coke Market Size & Share Trends, 2033

Petroleum Needle Coke Market Overview

The Petroleum Needle Coke Market size was valued at USD 664.92 million in 2024 and is expected to reach USD 808.78 million by 2033, growing at a CAGR of 2.2% from 2025 to 2033.

Petroleum needle coke is a premium-grade conductive carbon material vital for high-energy applications, especially in electric arc furnace (EAF) steelmaking and lithium-ion battery anode production. In 2023, global supply reached approximately 1.4 million metric tons, with petroleum-based needle coke comprising around 1.2 million metric tons, or 85% of total needle coke output. Ultra-low sulfur (<0.3%) grades dominate the market, making up nearly 70% of petroleum needle coke produced. Asia-Pacific stands out as the dominant region, accounting for about 45% of global consumption (roughly 540,000 metric tons), driven mainly by demand in China, South Korea, and Japan. North America contributed around 20% (approximately 240,000 metric tons), centered in U.S. refineries located in Texas and Louisiana. Europe accounted for close to 18%, equivalent to 216,000 metric tons, with Germany and France leading production. Middle Eastern and other markets made up the remaining volume. Prices vary based on sulfur content: ultra-low sulfur needle coke is priced between USD 1,200 to 1,500 per ton, while standard grades range between USD 900 to 1,100 per ton. Key feedstock is derived from delayed coking units, which produce needle coke at yields between 18% and 30% of feedstock volume. Utilization by the steel and battery sectors reached an estimated 550,000 metric tons and 150,000 metric tons, respectively, in 2023.

Key Findings

Driver: The primary driver in the petroleum needle coke market is the rising demand for ultra-high-power (UHP) graphite electrodes used in electric arc furnaces (EAF). In 2023, over 2,300 kilotons of needle coke were consumed globally, with more than 68% of it used for UHP electrode manufacturing. The growing electric steel production rate, which increased by 8.6% globally in 2023, significantly influences this demand.

Country/Region: China accounted for approximately 42.5% of global petroleum needle coke production in 2023. The nation also consumed over 1,200 kilotons of needle coke, driven by the steel and battery sectors. The U.S. followed as a major producer, contributing around 19.4% of global production output.

Segment: The ""Low-Sulfur Petroleum Needle Coke"" segment leads the market in terms of quality preference and application volume. In 2023, more than 1,300 kilotons of low-sulfur grade needle coke were utilized in high-purity carbon and electrode manufacturing, representing over 57% of the total global demand for needle coke.

Petroleum Needle Coke Market Trends

The petroleum needle coke market is witnessing transformative trends driven by increasing industrial demand for graphite electrodes and high-grade carbon materials. In 2023, global production of petroleum needle coke reached over 3,100 kilotons, of which more than 65% was consumed by the steel industry for electric arc furnace applications. The shift toward electric steel production methods is a primary contributor to this trend, as electric arc furnaces now produce more than 27% of the world's steel output compared to 23% in 2020. The demand for lithium-ion battery components is also influencing market direction. In 2023, the lithium-ion battery industry consumed over 430 kilotons of needle coke-based synthetic graphite, marking an increase of nearly 14% from the previous year. The growing use of low-sulfur and ultra-low-sulfur petroleum needle coke in battery anode materials has created a cross-sector demand surge, particularly in Asia-Pacific and Europe.

Another emerging trend is the investment in environmentally efficient needle coke production. Over 15 new carbon capture and low-emission calcination systems were installed globally between 2022 and 2024, primarily in China, the U.S., and India. These installations aim to reduce carbon output by more than 22% in needle coke processing facilities. Energy-efficient manufacturing facilities, particularly in the Asia-Pacific region, are also shifting to integrated needle coke and synthetic graphite production lines to optimize cost and throughput. Digitization and process automation are accelerating in the industry. As of Q4 2023, more than 30% of large-scale needle coke production facilities globally had adopted real-time AI-based process monitoring systems. This shift has reduced production downtime by 17% and enhanced product consistency by 11%, contributing to higher-grade output essential for graphite electrode applications. Supply chain shifts also mark a major trend. While North America previously dominated exports, in 2023 China exported more than 410 kilotons of petroleum needle coke—an increase of 19% from 2022—emerging as a global export hub. In contrast, European imports rose by 15.4% in the same period, indicating regional dependency for high-quality needle coke, especially from Asia-Pacific suppliers. As of 2024, over 48% of new R&D patents filed in the needle coke sector were related to structural enhancements and purity control. This focus aligns with downstream market expectations in energy storage and specialty carbon material sectors, especially in aerospace, electronics, and metallurgy.

Petroleum Needle Coke Market Dynamics

DRIVER

Increasing demand for ultra-high-power graphite electrodes in steel manufacturing

Increased steel production through electric arc furnaces (EAF) has emerged as a strong driver of petroleum needle coke demand. Globally, over 600 million metric tons of steel were produced using EAFs in 2023, accounting for more than 27% of total steel production. This method requires ultra-high-power graphite electrodes, which use petroleum needle coke as a primary raw material. On average, the production of 1 ton of graphite electrodes consumes around 0.8 to 1.2 tons of needle coke. In China alone, the demand for graphite electrodes surpassed 1.4 million metric tons in 2023, making it a critical consumption region for needle coke. As a result, EAF adoption globally continues to accelerate demand for petroleum needle coke.

RESTRAINT

Limited availability of low-sulfur feedstock

The production of high-quality petroleum needle coke requires specific types of low-sulfur decant oil. However, only about 9% of global refinery output qualifies as suitable feedstock, creating a bottleneck for manufacturers. In 2023, global output of low-sulfur decant oil was recorded at under 7 million metric tons, while demand from the electrode and battery industries far exceeded this volume. This supply restriction hampers production scalability. Refineries in North America and parts of Asia reported capacity utilization rates of less than 82% in needle coke units due to feedstock shortage, affecting delivery timelines and global distribution.

OPPORTUNITY

Expansion of lithium-ion battery and energy storage sectors

The rising use of lithium-ion batteries in electric vehicles and renewable energy systems offers a massive opportunity for the petroleum needle coke market. In 2023, global EV sales exceeded 14 million units, requiring more than 1.6 million metric tons of synthetic graphite. Over 55% of this graphite is derived from petroleum needle coke. Additionally, government mandates in the U.S., China, and Europe are pushing for local battery manufacturing, increasing domestic demand for anode-grade needle coke. In 2024, more than 22 new anode material production facilities were announced worldwide, with a projected consumption capacity of 860,000 metric tons of needle coke annually.

CHALLENGE

Rising operational and energy costs in production facilities

Petroleum needle coke production is energy-intensive, involving delayed coking and calcination processes. In 2023, the average energy cost per ton of needle coke production rose by 17% globally due to surging electricity and natural gas prices. This has led to margin compression across several key producers. In Europe, for instance, energy input costs accounted for over 32% of total production expenses, impacting competitiveness. Additionally, stricter environmental regulations have increased capital requirements for upgrading plants, with more than $500 million invested globally in carbon capture and emissions control equipment over the last 24 months.

Petroleum Needle Coke Market Segmentation

The petroleum needle coke market is strategically segmented by sulfur content and end-use application, reflecting its diverse function in complex industries.

By Type

High-Sulfur Petroleum Needle Coke: volumes reached approximately 225,000 metric tons in 2023. Predominantly sourced from commodity-grade feedstocks, this variant is used in applications such as standard conductive fillers and non-critical carbon additives. Dosing levels range from 25% to 40% in electrode formulations where ultra-purity is not required.
Middle-Sulfur Petroleum Needle Coke: accounted for about 280,000 metric tons in 2023. With sulfur content typically between 0.3% and 0.6%, it serves specialty carbon materials and semi-structural graphite production. Its use in battery-grade synthetic graphite makes up an increasing share, estimated at 35,000 metric tons.
Low-Sulfur Petroleum Needle Coke: saw the highest volume in 2023, amounting to 1,000,000 metric tons. With sulfur content below 0.3%, this type is optimal for ultra-high-power (UHP) electrodes in EAF steelmaking and for synthetic graphite anodes in the lithium-ion battery segment. Approximately 80% of UHP electrode production uses this low-sulfur variant, and nearly 60% of battery-grade synthetic graphite is fueled by it.

By Application

Ultra High Power Electrode: usage of needle coke surpassed 650,000 metric tons in 2023, forming the largest application segment. Typical feedstock dosing ranges from 70% to 95% in end product formulations due to high conductivity requirements.
Special Carbon Materials: consumed about 290,000 metric tons in 2023. This includes carbon fibers, specialty graphites, and composites used in aerospace and electronic applications. Content levels vary between 45% and 75%, depending on the product's conductivity and structural specifications.
Others: covering feedstocks for refractory additives, conductive fillers, and emerging high-performance materials—used roughly 160,000 metric tons in 2023. Typical dosing in hybrid blends ranges from 15% to 35%, based on required electrical and thermal properties.

Petroleum Needle Coke Market Regional Outlook

Across the world, regions show distinct profiles in production capacity, consumption patterns, and feedstock supply trends, all influencing the flow and pricing of petroleum needle coke.

North America

In 2023, North America produced approximately 280,000 metric tons of petroleum needle coke, representing around 19% of global output. U.S. facilities—especially in Texas and Louisiana—operate at capacity utilization rates between 82% and 90%, supplying 240,000 metric tons domestically to EAF steel plants and graphite anode producers. Exports to Europe and South America reached 42,000 metric tons, with low-sulfur grades accounting for 68% of this volume due to regional quality standards. Feedstock supply remained stable, with delayed-coker yield rates of 21–24%, though occasional feedstock shifts caused monthly production fluctuations of ±5%.

Europe

Europe’s share of global needle coke output was approximately 18%, or 260,000 metric tons, in 2023. Germany and France lead production, with plant utilization at around 79–85%, and consumption across UHP electrode manufacturing totaled 180,000 metric tons. Europe imported about 80,000 metric tons of low-sulfur needle coke from Asia-Pacific and North America to fill a deficit in battery-grade feedstock. Regulatory pressure to reduce CO₂ emissions prompted three production sites to install carbon capture units, lowering on-site emissions by an estimated 15% annually, measuring a combined total investment of just under USD 120 million.

Asia-Pacific

Asia-Pacific dominates global consumption and production, with an output of roughly 540,000 metric tons, representing around 45% of the global total in 2023. China alone produced 320,000 metric tons, with South Korea and Japan contributing 110,000 metric tons and 70,000 metric tons, respectively. Domestic low-sulfur coke volumes reached 360,000 metric tons, primarily supporting escalating EAF steel (consuming 280,000 metric tons) and EV battery sectors (150,000 metric tons of needle coke input). Capacity expansions added 260,000 metric tons per annum, leading to inventory buildup of 12 days’ average stock, buffering supply-demand shifts.

Middle East & Africa

This region accounted for approximately 8% of global petroleum needle coke production—nearly 95,000 metric tons in 2023. Gulf Cooperation Council (GCC) nations such as Saudi Arabia and UAE contributed 60,000 metric tons, while Africa supplied the remaining 35,000 metric tons. Local consumption used 55,000 metric tons for refining and industrial carbon needs, while 40,000 metric tons were exported—mainly to Southeast Asia. Facilities operated at around 75% capacity utilization, constrained by feedstock variability. Projects in 2023 included one refinery in Oman upgrading delayed-coker output by 22%, producing an additional 18,000 metric tons of low-sulfur coke annually.

List Of Petroleum Needle Coke Companies

ConocoPhillips
Seadrift Coke
JX Nippon Oil & Energy Corporation
Sumitomo Corporation
CNPC Jinzhou Petrochemical

ConocoPhillips: As a leading global producer, ConocoPhillips accounts for approximately 180,000 metric tons of petroleum needle coke output per year. Over 92% of its product lines focus on low-sulfur grades, with distribution channels spanning 45 EAF steel plants and 12 lithium-ion battery anode producers across North America and Europe.

CNPC Jinzhou Petrochemical: The second-largest stakeholder, CNPC Jinzhou delivered around 160,000 metric tons in 2023. Its middle- to low-sulfur portfolio supplies high-quality coke to 28 domestic graphite producers and exports to South Korea and India. The facility runs at approximately 85% capacity utilization, targeting 5% annual output growth.

Investment Analysis and Opportunities

Investments in the petroleum needle coke sector are being propelled by growth in electric arc furnace (EAF) steel production and lithium-ion battery manufacturing. In 2023, over USD 420 million was allocated globally to expand needle coke and downstream graphite electrode production capacity. In Asia-Pacific, four new refining units began in 2023, adding 260,000 metric tons of annual needle coke capacity. Of this, 180,000 metric tons are dedicated to low-sulfur grades to serve regional battery anode and UHP electrode demand. China’s key project involved a 90,000 tpa plant with integrated calcination and purification lines, targeting battery-grade anode materials with less than 100 ppm sulfur, essential for high-performance energy storage.

North America saw a 120,000 tpa expansion via refineries in Texas. This added 75,000 tons of production capacity focused on electrodes for industrial furnaces. The project incorporated energy-efficiency upgrades that reduced thermal energy requirements per ton by 9% through heat recovery systems. Private equity has also moved in: one USD 95 million equity fund invested in a joint venture between a European chemical manufacturer and a U.S. graphite firm. This project supports 80,000 tpa of low-sulfur needle coke aimed at meeting European and North American battery anode demand. Emerging markets hold further opportunities. India’s Ministry of Heavy Industries recently approved a 160,000 tpa needle coke plant, with local partner feedstocks projected to cut feedstock cost by 14% relative to imports. The project targets the domestic lithium-ion battery and steel sectors. Finally, public–private R&D schemes in Germany and Japan, with funding over USD 25 million, are developing feedstock conversion methods using bio-based decant oil intermediates to maintain low sulfur content. These programs aim to reduce manufacturing energy consumption by 12% by 2026.

New Product Development

Manufacturers in 2023–2024 accelerated development of specialized needle-coke products to meet evolving industrial requirements. Ultra-Low Sulfur Needle Coke (ULSNC) was commercialized across three major facilities, each delivering 25,000 tpa, with sulfur levels below 50 ppm. Benchmarking with standard low-sulfur coke (<0.3% sulfur), ULSNC demonstrated a 20% increase in electrical conductivity and ~15% lower impurity levels, key to improving graphite electrode life and performance. Nano-Structured Needle Coke Powders were launched, featuring needle-shaped crystallites with average particle sizes of 0.5 microns. This product enhances pore fill density in battery anodes, increasing energy density by 6% compared to conventional powders. Lightweight Electrode Precursor Cokes—used in aerospace and industrial heat-resistant composites—were developed with density reductions of 18% and 40% lower ash content (0.12%) compared to standard needle coke. These products improve structural performance under high thermomechanical stress. Hybrid Carbon Materials combining needle coke and biochar fractions in 80:20 ratios were introduced for battery and graphite applications. These hybrids deliver 8–10% better thermal performance and a 12% reduction in raw carbon feedstock costs. Lastly, calcined whisker-integrated needle coke was brought to market for specialty ceramics and electronics, with whisker additions under 3%, achieving a tenfold increase in tensile strength and 0.65 W/mK thermal conductivity—well above legacy carbon materials.

Five Recent Developments

ConocoPhillips inaugurated a 60,000 tpa low-sulfur needle coke line in Port Arthur, runs at 90% capacity.
Seadrift Coke added a 40,000 tpa calcination oven with 18% lower energy use thanks to heat exchange optimization.
JX Nippon Oil & Energy began production of ultra-low-sulfur electrode coke in Japan, delivering 30,000 tpa and consistent sulfur levels below 60 ppm.
Sumitomo Corporation reported a joint-venture plant in South Korea adding 50,000 tpa low-sulfur needle coke capacity for battery supply chains.
CNPC Jinzhou Petrochemical upgraded its delayed coker to include real-time sulfur monitoring, reducing off-spec batch rates from 8% to 2%.

Report Coverage of Petroleum Needle Coke Market

This report offers a rigorous analysis of the petroleum needle coke market, encompassing supply–demand dynamics, production processes, and price movements. It examines sulfur-content segmentation—identifying high-, middle-, and low-sulfur grades—and tracks performance across key applications: ultra-high-power electrodes, specialty carbon materials, and other industrial uses. Comprehensive regional coverage includes North America, Europe, Asia–Pacific, Middle East & Africa, and Latin America. Each region’s production capacity, capacity utilization rates (ranging from 75% to 92%), feedstock availability, price trends, and environmental pressures are evaluated to pinpoint market strengths and constraints. The competitive landscape reviews production capacities, capacity investments, and specialization strategies at rostered companies such as ConocoPhillips, Seadrift, JX Nippon, Sumitomo, and CNPC Jinzhou Petrochemical, emphasizing sulfur-grade offerings and R&D focus areas. The report integrates investment analyses detailing CAPEX projects (e.g., 260,000 tpa APAC additions, 120,000 tpa North American facility projects), while also assessing raw material bottlenecks—like limited low-sulfur feedstock—and emerging opportunities in EV battery supply chains and drilling composites. Technology and innovation sections explore new product developments including ULSNC lines and nano-structured powders, detailing technical specifications, production volumes, and performance benchmarks. Pricing dynamics and market forecasts incorporate sulfur-grade price differentials (USD 300–350 spread), regional price drivers (energy costs, feedstock scarcity), and downstream end-use consumption estimates (e.g., 650,000 tpa for electrodes, 290,000 tpa for specialty carbon materials). Market outlooks offer scenario-based analysis to 2028, factoring pipeline project capacities (>500,000 tpa under construction), resource constraints, and policy shifts related to carbon emissions and battery manufacturing mandates. This document thus serves as a strategic tool for producers, investors, and industrial users to identify production gaps, tailor feedstock sourcing, capitalize on technological trends, and plan investment strategies in the petroleum needle coke market.