【Needle Coke】Needle Coke Market - A Long and Bright Journey

Overview of the Needle Coke Market in 2023

In 2023, the overall trend of needle coke prices in the Chinese market showed a fluctuating decline, decreasing by approximately 4000 yuan/ton throughout the year. In the first half of the year, upstream and downstream companies in the needle coke industry had high raw material inventories, ample needle coke supply, and moderate downstream demand, leading to continuous price declines due to pressure-driven procurement. In the second half of 2023, the inventory levels of needle coke enterprises decreased to a reasonable level. UHP graphite electrodes are produced from needle coke and used for EAFs steelmaking. By the third quarter, the prices of raw material oil slurry rose. At the end of the third quarter, needle coke enterprises were forced to increase prices. However, due to overall weak downstream demand, a price war ensued in the needle coke industry, and needle coke prices once again entered a phase of fluctuating decline. 

Forecast for the Needle Coke Market in 2024

Regarding negative electrode coke, the demand for needle coke will rebound in 2024. The two main reasons for the poor demand for needle coke from negative electrode materials in 2023 are: 1) supply-demand mismatch leading to inventory pressure upstream and downstream, and 2) significant cost pressure for negative electrode materials. After a year of adjustment, the inventory problem has improved. The procurement pace of negative electrode materials for needle coke has returned to a reasonable state. In 2024, the production of negative electrode materials will continue to rise, and the usage of needle coke for negative electrode materials will also increase compared to 2023.

In terms of graphite electrode coke, the demand for needle coke will also increase in 2024. 2023 was a turning point for the graphite electrode industry. In the coming years, many regions in China will strive to achieve the indicators for the proportion of electric furnace steel production in the 14th Five-Year Plan. Meanwhile, overseas electric furnace steel markets have a positive demand outlook for graphite electrodes, which will drive the demand for needle coke.

Driven by the two major downstream markets, the demand for needle coke in China will grow by approximately 27% in 2024. The first half of the year will be a phase of depleting inventories for graphite electrode companies and a recovery stage for negative electrode material companies. The overall demand for needle coke in these two industries will focus on essential replenishments. In the second half of the year, with the arrival of the peak demand season, the needle coke market's demand is expected to rebound, and the highest point in needle coke prices for the year is anticipated to occur in the third quarter. Latest market news of needle coke，follow us to know more.