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Increasing demand for steel

The demand for steel is substantially increasing due to which calcined petcoke are showing significant increase in their production rate. According to the world Steel Association, the steel output increased by 3.8 percent to 1,690 million tonnes and steel consumption increased by 5.1 percent to 1,693 million tonnes globally. The steel industry is expanding at a lucrative rate in Asia Pacific regions such as in India. India is the world’s second-largest steel producer, and its steel production capacity has expanded from 106.5 million tones in 2018 to 137.975 million tones in 2019. The steel industry is also showing a significant increase in the North American region such as in United States. During the North American Free Trade Agreement (NAFTA), the U.S. monthly steel consumption indicator increased by 3.7% during January to August 2018, year-on-year. The Steel consumption also increased in Argentina (1%) and Ecuador (4%) during January-November 2018. The rising demand for steel and steel related products acts a driver for the calcined petcoke market during the forecast period.

Increasing preference of Calcined Petroleum Coke over the coal

Calcined Petroleum Coke has a higher carbon content compared to coal containing almost more than 90 percent of carbon and, based on the calorific value, the Calcined Petroleum Coke has a value of more than 7,000 kcal / kg which is nearly double that of coal. As it is the by-product of the refineries the value of the Calcined Petroleum Coke is cheap as compared to the coal. Currently there is no other substitute available for the Calcined Petroleum Coke so the demand of the market is experiencing a substantial growth. High yield, cheap price have been the key benefits resulting in growing preference for Calcined Petroleum Coke by the end users over coal. 

Asia Pacific dominates the Calcined Petroleum Coke market, owing to the increasing manufacturing & construction activities in the region due to various government initiatives such as 100 smart cities and Housing for all by 2022 in the region.

Major industry participants are developing novel manufacturing processes for intermediate grade needle coke in order 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. Which will further support calcined petcoke market growth.

Due to the COVID-19 pandemic, most of the countries have gone under lockdown, due to which operations of various industries including construction has been negatively affected, which is hampering the calcined petcoke market growth. 

Source: https://www.industryarc.com/Report/17755/calcined-petroleum-coke-market.html