The prices of raw needle coke and calcined needle coke are rising simultaneously

Recently, the prices of raw needle coke and calcined needle coke have been rising simultaneously across major global markets, a trend that has attracted widespread attention from all links of the industrial chain, from upstream raw material suppliers to downstream manufacturers. As critical and irreplaceable raw materials for producing high-performance graphite electrodes and high-quality lithium-ion battery anodes, their price fluctuation not only affects the operational costs of related enterprises but also exerts a chain reaction on multiple downstream industries, including electric arc furnace (EAF) steelmaking, new energy vehicle manufacturing, and even the renewable energy storage sector.

The simultaneous price increase of the two types of needle coke is not an accidental phenomenon but is driven by a combination of multiple supply and demand factors. On the cost side, the continuous surge in international crude oil prices triggered by regional geopolitical conflicts and tight global energy supply has directly pushed up the cost of key feedstocks for needle coke production, such as oil slurry and coal tar. These raw materials account for more than 60% of the total production cost of needle coke, making the cost pressure difficult to alleviate in the short term. On the supply side, the global needle coke industry has long been plagued by low overall inventories—some leading enterprises even maintain a zero-inventory operation model—and the strict technical barriers to production have limited the expansion of new capacity, further tightening the market supply and creating a situation of supply shortage.

On the demand side, the global wave of low-carbon transformation has greatly boosted the demand for graphite electrodes, which are mainly made from calcined needle coke, in the EAF steelmaking industry, as EAF steelmaking is more energy-efficient and low-carbon compared with traditional blast furnace steelmaking. At the same time, the rapid expansion of the global electric vehicle industry and the continuous upgrading of battery technology have significantly increased the demand for high-purity, high-performance needle coke used in lithium-ion battery anodes. This strong and sustained market demand, coupled with the persistent cost pressure from the upstream, has jointly led to the synchronous and continuous rise of both raw and calcined needle coke prices.

Industry insiders and market analysts predict that the strong price trend of raw and calcined needle coke will continue in the short term, as the imbalance between supply and demand is difficult to be reversed quickly. In the medium term, if regional geopolitical tensions ease, the global energy market stabilizes, and new production capacity of needle coke is gradually released, the prices may fluctuate at a high level instead of continuing to rise sharply. This price trend also reminds downstream enterprises to timely adjust their procurement strategies, establish long-term cooperative relationships with suppliers, and strengthen internal cost control to effectively cope with the impact of market price changes and maintain stable operation.