Growing Demand in Cement and Power Generation Industry to Fuel Growth of the Petroleum Coke Market
The petroleum coke market is expanding due to increased requirement from the cement and power generation industries. The expanding cement and power generation capacities, especially in developing economies, are contributing to the growth of the petroleum coke market. There exist increased exports of petroleum coke. For instance, in July 2019, Arabian Cement Company (ACC) announced the signing of an agreement with the Egyptian Refining Company to supply local petroleum coke (petcoke), early July 2019. Moreover, increased investment by major players in improving crude oil production capacity is expected to provide lucrative opportunities for petroleum coke market. For instance, in January 2019, ExxonMobil announced that it will increase crude refining capacity by more than 65%, or 250,000 barrels per day. Thus, rising crude oil production continues to indirectly boost market growth.
The changing trend in medical, electrical components, and ceramics applications is expected to drive market growth. The rapid expansion of the electronic industries has big forbearance on the petroleum coke market growth. Petroleum coke distribution and supply agreements are a major market trend that is expected to act as a catalyst for market growth.
Low Cost and High Calorific Value of Fuel Grade Coke to Drive Petroleum Coke Market Growth
Fuel grade coke dominated the market and is expected to grow rapidly over the forecast period due to the product's high calorific value. However, due to its low cost and high calorific value, fuel grade coke is used in the cement and power industries. Growing cement and power industries in emerging economies such as India, China, and Japan are expected to drive product demand soon. Calcined coke is used to produce titanium dioxide in the paints and colourings, aluminium, steel, and fertilizer industries. Rising demand from the aluminium and steel industries is expected to drive petroleum coke demand.
Growth of Petroleum Refining in Asia Pacific to Fuel Market Growth
Asia Pacific dominated the petroleum coke market and is expected to remain the largest regional market in terms of demand over the forecast period. The expansion of the petroleum coke industry is directly related to the growth of the petroleum refining, cement, and power industries. Population growth and aggressive industrialisation in Asia Pacific are expected to boost the hopes of petroleum coke manufacturers operating in these regions. More opportunities are expected to emerge in Asia Pacific, as the region dominates the international petroleum coke market in terms of demand, owing to massive imports. The low cost of petroleum coke is likely to be a major draw for its import, as a large amount of power could be produced at a reasonable cost. Aside from that, a large amount of heat can be produced with a small amount of petroleum coke.
The petroleum coke is widely used in power plants, and cement kilns in emerging economies such as India and China. Most of the petroleum coke in China is used to generate electricity in power plants. Furthermore, due to the country's rapid industrialisation, India uses a large amount of the product in the cement industry. Growing cement and power industries in the region are expected to increase product demand soon. For instance, China's cement production volume was nearly 2.4 billion metric tonnes in 2020. To meet China's urbanisation needs, domestic cement production increased rapidly, peaking at 2.5 trillion metric tonnes.
Europe is expected to experience rapid market growth over the forecast period because of the low costs associated with electricity production. With its easy and abundant availability, petroleum coke is replacing natural gas and coal as a favoured fuel. The region's petroleum coke demand is predicted to be driven by growing infrastructural development. Petroleum coke is being produced domestically by crude oil refineries that have set up delayed coking machines.
Global Petroleum Coke Market: Competitive Landscape
In November 2021, The Sohar Freezone will host Oman's first petroleum coke calcining (CPC) facility for a "soft launch." Sanvira Carbon FZC, established with a USD 150 million investment, will help refineries in the Sultanate of Oman add value to the large amounts of petroleum coke (Petroleum Coke) produced as a byproduct of the refining process. On the other hand, in November 2021, RIL, India's largest petroleum coke manufacturer, will embark on a programme to consolidate its gasification operations into a wholly-owned subsidiary. This is in line with the company's efforts to transition to renewable energy and achieve net-zero carbon emissions. The gasification project was established at the Jamnagar refinery in Gujarat's western province to produce syngas to meet energy requirements as refinery off-gases.
A few of the players in the petroleum coke market include Oxbow Corporation, Petroleum Coke Industries Company, Renelux Cyprus Ltd., Graphite India Limited, Suncor Energy Inc., Phillips 66 Company, Aminco Resources LLC, Nippon Coke & Engineering. Co., Ltd., British Petroleum, and Marathon Petroleum Corporation.
Global Petroleum Coke Market is Segmented as Below:
Key Elements Included In The Study: Global Petroleum Coke Market
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