Petcoke Market Analysis

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.

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.

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.