The global calcined petcoke market is expected to witness significant growth at a CAGR of over 3% over the forecast period owing to the growing demand from the steel industry as an additive in the electrodes or as a carburized. Also, the use of anode grade petcoke and needle coke during the production of steel and in graphite electrodes, respectively is projected to drive the market growth.
The key factors driving the calcined petcoke market growth include rising demand for petroleum coke in the steel industry; development in the cement and power generation industries; growth in the supply of heavy oils globally and favorable government initiatives regarding the sustainable and green environment.
Increasing construction spending coupled with the rising demand for pre-engineered buildings (PEB), especially in the emerging economies of Asia Pacific, including China, India, Japan, and Thailand among others is the key driving factor for the global calcined petcoke market. Economic development coupled with population expansion across these economies is likely to further contribute toward the global market development over the forecast period.
Major industry participants are developing novel manufacturing processes for intermediate grade needle coke to enhance the properties and make it suitable for several applications. Technological innovations are aimed at refining processes and expanding application areas of calcined petcoke.
The increasing imports and exports across the globe are likely to impact demand for the product over the forecast period. Growing steel production in developing economies of the Middle East & Africa and the Asia Pacific is expected to influence the need for CPC. Furthermore, rapid urbanization and industrialization in the developing economies of China and India are expected to drive market growth.
However, the ban on coal mining is likely to hamper the supply, thereby creating a supply shortage in the industry as crude oil distillates and residues are the major sources for calcined petcoke derived from the petroleum industry. The fluctuating prices of crude oil have a similar impact on the prices of petcoke which has led manufacturers to incur unexpected losses at times.
The calcined petcoke market can be segmented based on technology into anode grade and needle grade. Anode grade calcined petcoke, also called Raw Petcoke (RPC) or Green Petroleum Coke (GPC), is a low-quality product with a high content of carbon. It is projected to accounts for around 20% of the market share and is used as a carburizing agent to balance the carbon content during the process of steel manufacturing.
Needle Petroleum Coke or needle petcoke is a premium grade calcined product as compared to anode grade. It contains needle-like crystals and is used in the manufacturing of electrodes, which are used in the steel industry, owing to its electrical conductivity and physical properties. Needle coke is used indirectly in the production of steel; it is employed in manufacturing graphite electrodes, which are used in electric arc and induction furnaces.
The calcined petcoke market is further segmented based on end-use into carburizing & recarburizing and electric arc & induction furnaces. Calcined Petcoke (CPC) is used in carburizing and recarburizing to balance the carbon content during the manufacturing of steel. Anode grade is used in this application as it is a relatively lower grade of coke with high carbon content.
The application of the product in electric arc and induction furnaces is estimated to account for over 80% to 85% of the market share. Although CPC is not used directly in the steel industry; the electrodes used in the manufacturing of electric and induction furnaces are manufactured using needle coke. These furnaces are widely used in steel manufacturing for smelting applications.
The calcined petcoke industry has witnessed a huge imbalance in demand and supply in recent years, which has further led to a sharp rise in the prices. This factor has severely impacted the whole supply chain of the product, ranging from the raw material suppliers to the steel manufacturers. The industry has witnessed several environmental restrictions, which led to the shutdown of major electrode facilities in China.
The calcined petcoke market is characterized by the presence of a large number of players including Oxbow Corporation, Atha Group, Rain Industries Limited, HPCL-Mittal Energy Limited (HMEL), Essar Oil Ltd., Henze International LLC, BP, Chevron Corporation, and ArcelorMittal operating in key areas.
The major players operating in the calcined petcoke industry are oil & gas manufacturers such as BP, Chevron Corporation, and Indian Oil Corporation Ltd. These players are integrated across the three stages of the value chain, i.e., from manufacturing raw materials to supply/distribution of the calcined petcoke to the end-use industry players.
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