【Needle Coke】Production Capacity, Output, and Operating Rate Analysis in H1 2024

【Needle Coke】Production Capacity, Output, and Operating Rate Analysis in H1 2024 

1. Analysis of Needle Coke Production Capacity

In the first half of 2024, China's annual production capacity for needle coke was 3.25 million tons, accounting for three-quarters of the global capacity, making it one of the world's leading producers. This includes 2 million tons of petroleum-based needle coke and 1.25 million tons of coal-based needle coke. The newly added capacity in the first half of 2024 was 200,000 tons, with only one expansion project in Shandong being put into production. Currently, the utilization rate of needle coke production capacity remains at a medium-low level, with nearly half of the capacity idle. This has intensified industry competition, and some enterprises have halted production for more than two years. UHP graphite electrodes (needle coke as the raw material) have the advantages of strong thermal shock resistance, high mechanical strength, good oxidation performance, low electrode consumption and large allowable current density.

2. Analysis of Needle Coke Output and Operating Data

The total output in the first half of 2024 was 416,800 tons, an increase of 19.15% compared to the same period in 2023. This includes an petroleum-based needle coke output of 405,300 tons, a year-on-year increase of 41.61%, and a coal-based needle coke output of 11,500 tons, a year-on-year decrease of 81.92%. The output of green coke was 258,700 tons, a year-on-year increase of 25.70%, while the output of calcined coke was 158,100 tons, a year-on-year increase of 9.79%. Before the Spring Festival, downstream stockpiling operations were insufficient. Some petroleum-based manufacturers reduced or switched to producing petroleum coke. From mid to late March, major factories began maintenance lasting two months, slightly reducing output. However, starting in late March, the demand for anode materials in the market picked up, leading to increased restocking, and needle coke enterprises ramped up their production plans. By June, the overall output maintained a growth trend. Only two coal-based needle coke manufacturers had intermittent production in the first half of the year, resulting in a significant year-on-year decline in output. 

In the first half of 2024, the overall operating rate of the Chinese needle coke market remained at a medium-low level. For petroleum-based needle coke, new facilities began production at the beginning of the year, and mainstream large factories operated normally, ensuring sufficient market supply. However, due to continuously falling prices, production enthusiasm decreased. Starting in mid-January, some enterprises switched to producing petroleum coke or reduced production, causing the needle coke market operating rate to drop to a low of 26.03% in March. Subsequently, the demand for anode materials warmed up, and from April, needle coke enterprises increased their production load. By the end of May, a factory in Liaoning finished maintenance, leading to a slight increase in overall market operations, with petroleum-based operating rates reaching approximately 51% by June. For coal-based needle coke, the operating rate dropped to a freezing point in the first half of 2024, with no production in some months. This was due to both cost-profit inversion and a preference for petroleum-based and low-priced sources in the downstream market, resulting in a reduced market share for coal-based needle coke and low production enthusiasm overall.

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