【Needle Coke】2024 Market Forecast

Regarding the demand for needle coke in the negative electrode materials sector in 2024, there will be a rebound. The poor demand for needle coke in the negative electrode materials sector in 2023 was due to two reasons:

1. Supply-demand mismatch resulting in inventory pressure upstream and downstream.

2. Significant cost reduction pressure on negative electrode materials.

After a year of adjustments, the inventory issue has improved. The procurement pace of negative electrode materials for needle coke has returned to a reasonable level. Negative electrode material production will continue to rise in 2024, leading to an increase in needle coke usage compared to 2023.

In terms of graphite electrode coke, there will also be an increase in demand for needle coke in 2024. 2023 marked a turning point for the graphite electrode industry. In the coming years, many regions in China will strive to achieve the targets for the proportion of electric arc furnace steel production in the 14th Five-Year Plan. Additionally, the overseas electric arc furnace steel market's positive demand for graphite electrodes will drive the demand for needle coke.

According to estimates, driven by these two major downstream markets, China's demand for needle coke will increase by approximately 27% in 2024.The first half of the year will be a phase of inventory digestion for graphite electrode companies and a recovery phase for negative electrode material companies. The overall demand for needle coke in both industries will primarily focus on essential replenishment. In the second half of the year, as the peak demand season approaches, the demand for needle coke in the market will rebound. It is expected that the highest point of needle coke prices will also occur in the third quarter of the year. Follow us to learn daily news analysis of the coke market.