The upheaval in graphite electrodes demand in past two years and a steady surge in the requirements for graphite anodes for lithium-ion batteries in China has boosted the needle-coke demand in the country.
In 2018, the overall performance of China’s needle coke market was relatively stable with prices showing an uptrend and reaching to its high in the month of November. However, towards the end of 2018, the plunge in steel demand from downstream sector in China adversely impacted the country’s graphite electrode requirement and so does the needle coke demand and prices.
With the start of 2019, China’s domestic needle coke prices have been falling and have registered a plunge of 35% in the time span of six months. However, the price of high-quality needle coke required for UHP grade GE (usually imported) have been rising continuously recording a surge of 22% during Jan-Jun’19. The domestic needle coke prices in China are currently trending in the range of RMB 19,000-20,000 (USD 2,750 – 2,900/MT) whereas imported needle coke prices are at 4,200 – 4,600/MT.
According to customs data, in first four months of 2019, China’s petroleum-based needle coke import volume was 46,413 tonnes, 70% of which came from the United Kingdom, 15.3% from the United States, and 9.5% from Japan whereas country’s coal-based needle-coke imports were 27,819 tonnes of which 62% came from South Korea and 38% from Japan.
Although, the domestic needle coke produced in China still has some time to match the global standards, with the help of some research and development, the quality of the same have improved to some extent and few products have been able to mark their entry in the international market also.
At present the production capacity of domestic needle coke in China is in the period of rapid expansion and in 2019 some new projects will be officially put into operations:
China’s upcoming capacities in case of coal-based needle coke:
| Company Name | Planned Capacity | Estimated year of operation | Type |
| CNPC Jinzhou Company | 100,000 | 2019 | New expansion |
| Shandong Yida New Material | 70,000 | 2019 | New expansion |
| Shandong Jingyang Tech | 70,000 | 2019 | New expansion |
| SinoPec Maoming Company | 100,000 | 2020 | New entry |
| Sinopec Jinling Company | 100,000 | 2020 | New entry |
| Liaoning Baolai Bio-energy | 120,000 | 2020 | New entry |
| Total | 560,000 |
China’s upcoming capacities in case of petroleum-based needle coke:
| Company Name | Planned Capacity | Estimated year of operation | Type |
| Kaifeng carbon Anshan thermal-energy new material | 20,000 | 2019 | New expansion |
| Henei Kaifeng Carbon New Material | 40,000 | 2019 | New expansion |
| Shanghai Baosteel Chemical | 100,000 | 2019 | New expansion |
| Anshan Steel Holding | 40,000 | 2019 | New entry |
| Zaozhuang Thriving Carbon Tech | 40,000 | 2019 | New entry |
| Pingdingshan Risun New Material | 40,000 | 2019 | New entry |
| Baoshun Chem | 50,000 | 2019 | New entry |
| Tsdr New Energy | 100,000 | 2019 | New entry |
| Shanxi Jinzhou Chem | 40,000 | 2019 | New entry |
| Shanxi Fuma Carbon Material | 40,000 | 2020 | New entry |
| Ningxia Baichuan new material | 50,000 | 2020 | New entry |
| Total | 560,000 |
With the new capacities coming up in China’s needle coke sector and tepid graphite electrodes demand due to sluggishness in downstream sector, the country’s domestic needle coke prices are anticipated to fall further.
