Indian Oil Corporation has announced that it is planning to invest Rs1,268 crore (US$1.7M) in a new petroleum needle coke unit at its Paradip Refinery in Odisha. It will be entering this product segment for the first time. The unit will have a proposed capacity of 56ktpy.
Petroleum needle coke is a key ingredient in the production of synthetic graphite electrodes for electric arc furnaces (EAFs) in the steel industry, as well as for lithium-ion battery anode material – both sectors which are forecast to see strong demand growth in the long-term.
Needle coke supply has been constrained in recent years by environmental closures in China which, coupled with rising EAF electrode demand, resulted in widespread shortages of this material and a major hike in electrode prices during 2017 and 2018. Prices only returned to their previous lows in late 2019 and demand has since been constrained through 2020 by the impact of COVID-19.
India had been particularly badly hit by the raw material shortages. Indian Oil Corporation Limited (IOCL), is a public sector oil and gas company headquartered in New Delhi and the largest commercial oil company in India.
Roskill’s NEW Natural & Synthetic Graphite: Outlook to 2030, 13th Edition report will be published soon and will include analysis of recent steel and refractory industry trends on supply, demand, trade and prices, as well as providing forecasts to 2030, profiles of the main producers, and an industry cost curve for spherical graphite. Click here to download the brochure and sample pages for the report, or to access further information.