Ravindra Panwar

Renewed tensions around the Strait of Hormuz have revived concerns over disruption to Middle Eastern crude exports, reintroducing cost pressure across the synthetic graphite anode value chain. Oil is a key feedstock in the production of petroleum coke which in turn is used to make synthetic graphite anodes. Since the start of the conflict in Iran, both Brent crude and Chinese slurry prices have risen, with the latest escalation elevating Brent prices further. As a result of the conflict and the rising cost of feedstock materials, prices for pre-calcined petroleum needle coke have risen 23% so far this year on an RMB-basis (26% on a USD-basis) according to Benchmark’s Synthetic Graphite Price Assessment.

Mitsubishi Chemical Group will exit the needle and pitch coke market in 2027, citing weak overseas markets and persistent oversupply stemming from China as key reasons.