Petcoke Market Size - By Grade (Fuel Grade, Calcined Grade), By Physical form (Sponge Coke, Purge Coke, Shot Coke, Needle Coke), By Application (Power Plants, Cement Industry, Steel Industry, Aluminum Industry) & Forecast, 2023 - 2032

Petroleum Coke  Market Size

Petcoke Market size was valued at USD 42.3 billion in 2022 and is set to grow at 4.1% CAGR from 2023 to 2032. Rising demand to process heavy oil which leads to significant refinery capacity will augment the petroleum coke demand across the globe. Over the past decade petcoke has witnessed extensive application in cement and aluminum manufacturing industries due to its high calorific value and low ash content.

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The product has also been qualified as a non-hazardous waste by various government agencies including EPA which in turn is further raising its demand. Growing steel applications due to rapid industrialization and commercialization will also propel in the business landscape. At present petcoke has become the preferred raw material for steel manufactures due to its low price and abundant availability. It is extensively being used for electrode production in steel industries. Imposition of stringent emission norms pertaining to usage of coal in various power generating other manufacturing stations will further pave way for the petcoke market growth.

The coal industry is immensely facing regulatory and economic pressures which are affecting its cost competitiveness. Subsequently, petcoke is extensively being used as one of the major replacements for coal across various applications in order to economically comply with the changing emission regulations. Increasingly stringent regulations imposed by the environmental authorities associated with coal combustion and coal mining are incapacitating the coal sector.

The U.S. Environmental Protection Agency (EPA) has introduced more stern and novel legislations for distinct aspects of coal combustion, including waste disposal, water usage, and harmful emissions under the Clean Air Act. The EPA has initiated significant amends to its regulation of emissions of conventional pollutants, consequently elevating the cost of coal-fired power production. The regulation of carbon dioxide emissions from coal-fired power plants is addressed by various recent EPA rules.

COVID- 19 Impact

The COVID- 19 outbreak has impacted the overall petcoke market along with cement industries. The market experienced demand fluctuations during the pandemic. As various countries implemented lockdowns and travel restrictions, economic activities slowed down, leading to reduced energy consumption and industrial production. This resulted in lower demand for petcoke in certain sectors, such as cement and aluminum. The market is closely tied to the oil and gas industry. During the pandemic, oil prices experienced significant volatility, with a sharp decline in early 2020 due to reduced demand and an oil price war between major producers. The decline in oil prices impacted petcoke prices and market dynamics.

Petroleum Coke Market Trends

The global refining capacity is accelerating at a rapid rate, thereby paving way for the petcoke industry. Petroleum coke is obtained as one of the several products obtained during the refining process. Nearly half of the U.S. crude oil refineries employ a cooking process to convert heavy oil into refined petroleum products, with more number of refineries to follow. In addition, the U.S. petcoke production is increasing substantially as the domestic refineries are consistently adding coking capacities to leverage from the efficiently priced crude produced from the oil sands of Canada and other heavy oil sources, thereby adding to the petcoke market growth.

Cement, power, and steel industries are the predominant consumers of petcoke which are gradually transitioning from coal to cheaper fuels. Petroleum coke offers a viable alternative on account of its lower cost, high heating value, and low ash content. It is primarily used as a carbon source for industrial applications, or as an energy source. The product is widely used as a source of fuel for electric power plants and cement kilns.

Petroleum Coke Market Analysis

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Growing concern towards the utilization of cleaner fuels has encouraged cement manufacturers to increase its usage during cement manufacturing. Most of the cement industries mix petcoke with coal in the kiln fuels in order to reduce the freight weight and to minimize the residue ash content. Effective combustion is achieved through its higher calorific value which allows scope for manufacturing higher grade of cement using the same quantity of raw materials.

Fuel grade finds a wider utilization in power plants and cement industries where petcoke is directly consumed regardless of its high sulfur content. Use of fuel grade reduces the manufacturing cost along with simultaneously enhancing the cement quality. However, high sulfur content of fuel grade calls for modifications in calciner, burner, and cooler to ensure a hassle-free and cost-effective operation. India and China have been the major consumers of this grade while the U.S. is the foremost exporter.

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Growing infrastructure needs coupled with escalating construction practices have significantly influenced the growth of cement industries. Robust investments are being made by existing players to increase their production capacity in response to the increased demand from the real estate sector. Rapid urbanization in growing economies has increased the adoption of power generating plants. Properties of petcoke to be used as a low-cost combustion fuel coupled with an absence of government regulations have propelled the product’s demand in the power sector. Regulations concerning coal emissions in coal-fired power plants are being efficiently met by using a blend of petcoke and coal as a powering fuel which reduces the waste ash content and subdues NOx emissions.

The global steel demand is expected to grow at an increasing pace owing to the recovering economies in developed and emerging petcoke market including Brazil, India, and Russia. Burgeoning demand of steel to supplement the infrastructure growth has led to an increased steel production simultaneously complementing the growth of calcined petcoke in the metal industry.

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Stringent government norms pertaining to carbon emission will embellish the petcoke market demand across the region. The Fugitive Dust Management Plan enacted by the U.S. government compels the manufacturers to provide proper dust management plan including dust separation systems, handling & transportation systems, maintenance & reliability in operations and map depicting storage areas & locations of product.

Ongoing infrastructure development in the U.S. along with swelling investments toward delayed cooker units across the Mid-West and Gulf Coast areas will stimulate the industry outlook. The expansion of existing refineries along with the easy availability of products at a competitive price for combustion purposes will propel the industry landscape. The expansion in the adoption of alternative non-fuels in Canada owing to reduce the dependency on crude oil will further complement the industry growth.

Petroleum Coke Market Share

Prominent industries operative in the petcoke market includes

• Exxon Mobil
• Shell plc
• Saudi Aramco
• BP
• Reliance Industries
• Chevron Corporation
• Valero Energy Corp
• Indian Oil Corporation
• Marathon Petroleum Corporation
• Oxbow Carbon
• Aminco Resources
• Bharat Petroleum
• Shamokin Carbons
• Husky Energy
• cocangraphite

Major manufacturers operating across the market are focusing on strategic alliances and collaborations to gain a competitive edge over the others. The introduction of innovative measures to curb carbon emissions along with introduction of advance technological components by the eminent players has led to the positive business dynamics.

Petcoke Industry News

• In January 2023, Reliance Industries stopped selling petcoke within India and augmented imports of the product to form it into synthetic gas to power its refineries. As a result, India imports for petcoke is likely to rise owing to higher demand for cement used for building materials. This is anticipated to boost the petcoke market in India, thereby propelling the industry dynamics.
   
• In January 2020, ExxonMobil subsidiary ExxonMobil Catalysts and Licensing LLC and Axens have signed a licensing alliance agreement to allow Axens to provide ExxonMobil’s FLEXICOKING™ technology and integrated resid conversion solutions. Under the agreement, Axens is granted a worldwide right to market, license and provide engineering work and technical support for the design, construction, and start-up of new FLEXICOKING units. The technology will be offered under a single license and engineering agreement to be provided by Axens. This new alliance leverages collective expertise to meet customer needs by providing a resid conversion solution that maximizes liquid yields and minimizes pet-coke production.
   

This petcoke market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘MT & ‘USD Million’ from 2019 to 2032, for the following segments:

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Market, By Grade

• Fuel Grade
• Calcined Petcoke

Market, By Physical Form

• Sponge Coke
• Purge Coke
• Shot Coke
• Needle Coke

Market, By Application

• Power Plants
• Cement Industry
• Steel Industry
• Aluminum Industry
• Others

The above information has been provided for the following regions and countries:

North America

• U.S.
• Canada

Europe

• Spain
• Russia
• UK
• Italy
• France
• Germany
• Greece

Asia Pacific

• China
• India
• Japan
• Australia

Middle East & Africa

• Tunisia
• Turkey
• Morocco

Latin America

• Venezuela
• Brazil
• Argentina
• Chile
• Mexico