Transparency Market Research, after a careful study, states that the global needle coke market is monopolistic in nature. However, companies operating in the market are coming together to fight this monopoly, which is drastically expected to change the pricing models. Some of the leading players in the needle coke market are PETROLEUM COKE INDUSTRIES CO. (K.S.),
Mitsubishi Chemical Corporation, Philips 66, JXTG Holdings Inc., Indian Oil Corporation Ltd., C-Chem Co.Ltd., and Seadrift Coke LP. Rising production of petroleum coke to improve refinery margins is highlighted as one of the important strategies being followed by industry participants to strengthen their market position.
According to the research report, the global needle coke market is projected to be worth US$4,424.3 mn by the end of 2025 from US$953.8 mn in 2016. During the forecast years 2017 and 2025, the global market is projected to surge at a steady CAGR of 5.5%. Of the two types of needle coke, the petroleum based needle coke is projected to lead the global market as it has a higher threshold for extreme temperatures in production of steel. Furthermore, as it is less harmful to the environment, which is an important reason why it has been gaining constant traction. Geographically, Europe and Asia Pacific collectively hold a lion’s share in the global market. The growth of mining activities and construction activities in these regions has considerable stoked the usage of needle coke.
Steel and Aluminum Give Needle Coke Market its Biggest Break
The research report consistently emphasizes that the soaring production of steel across the globe is benefitting the needle coke market in many ways. It is extensively used in production of graphite electrodes that are used for manufacturing steel. Needle coke is used as heating material in electric arc furnace for production of steel. Thus, the growing uptake of electric arc furnaces (EAF) instead of induction furnaces to reduce pollution has spiked the demand for needle coke.
In addition to the aforementioned factors, the production and consumption of aluminum has also created a positive impact on the global needle coke market. Aluminum is an important materials used in a wide range of industries. For instance, the automobile, electrical, and construction industries are expected to be key end users of aluminum, thereby contributing the rising demand for needle coke. The research report points out that China consumes about 50% of the overall aluminum in the world. Booming transportation industry and sophisticated manufacturing industries are expected add to the soaring usage of aluminum.
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Fluctuating Crude Oil Prices to Impact Production of Steel
On the flipside, the global needle coke market faces its own set challenges. The consistently fluctuating prices of crude oil is the biggest hurdle for the overall market. It has had a negative impact on the electrode prices, which stifles steel production as. Any changes in production plans due to price changes affects the overall pricing, making it difficult for the eventual products to find a market, especially in the cost-sensitive regions of the world. The volatile political situation across the globe and the overall unrest amongst nations is expected to the very reason for the fluctuating crude oil prices.