The first domestically developed and independently patented coal-based needle coke production facility in China has recently become fully operational at Shanxi Hongte Coal Chemical Co., Ltd. This milestone marks a significant breakthrough for the country's coal tar processing industry. It is expected that by the end of this year, the plant will be capable of producing between 10,000 to 150,000 tons of needle coke annually. Once fully stabilized, the facility could eventually reach an annual output of 50,000 tons. The successful launch of this project not only narrows the technological gap between China and global leaders in coal tar deep processing but also ends the long-standing reliance on imported needle coke, a critical raw material for high-grade graphite electrodes.
Needle coke serves as the primary component in the production of high-power and ultra-high-power graphite electrodes, which are essential for electric arc furnace steelmaking. These electrodes are also used in nuclear reactors as neutron moderators and in advanced aerospace applications. There are two main types of needle coke: oil-based, derived from petroleum heavy oils, and coal-based, made from coal tar pitch. Historically, the U.S. pioneered the production of petroleum-based needle coke in the 1950s. However, with the shift toward lighter crude oil processing and rising oil shortages, the availability of petroleum-based raw materials has declined. As a result, countries like Japan and Germany have increasingly focused on developing coal-based needle coke technologies.
China's development of needle coke technology began later, with the material being designated as a national priority during the Sixth Five-Year Plan. In the 1990s, pilot projects were carried out at the Anshan Fertilizer Plant and in Jining, Shandong. Despite some progress, key technological breakthroughs remained elusive, and domestic production failed to meet demand. For years, China had to rely heavily on imports, which significantly hindered the growth of its carbon industry. In 2005, the country produced 165,000 tons of high-power and 65,000 tons of ultra-high-power graphite electrodes, while importing 100,000 tons of needle coke at $1,000 per ton. With the rapid expansion of electric furnace steelmaking, domestic demand for needle coke is projected to surpass 400,000 tons by 2010.
Currently, needle coke remains a scarce resource in China. Several companies and research institutions are actively working on coal-based needle coke technologies. Notably, the feasibility study for a needle coke project led by the Anshan Thermal Energy Research Institute under Sinosteel Group has been completed, and further development is now accelerating. This ongoing effort reflects a growing commitment to achieving self-sufficiency in a crucial industrial material.
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