PETROLEUM COKE (PETCOKE) MARKET ANALYSIS

The petroleum coke (petcoke) market was valued at US$ 26.87 Billion in 2022, and is expected to exhibit a CAGR of 5.5%, in terms of revenue, over the forecast period (2023-2030) to reach US$ 41.32 Bn by 2030. Petcoke, or petroleum coke, is a solid carbon-rich substance generated from crude oil refining. It is generated during the extraction of gasoline and other petroleum products from crude oil. Petcoke is an effective fuel for industrial operations such as cement kilns and power plants due to its high carbon content and low moisture level. It is also used to make anode carbon for aluminium smelting. When burnt, petcoke contributes significantly to greenhouse gas emissions and air pollution due to its high carbon content. Because of its environmental impact, the usage of petcoke has been criticised.

Petroleum Coke (Petcoke) Market - Impact of the Coronavirus (COVID-19) Pandemic

The COVID-19 pandemic was an unprecedented worldwide public health disaster that impacted nearly every business, and the long-term impacts are expected to have an influence on the market growth throughout the projection period. The coronavirus pandemic has had a substantial impact on the petroleum coke (petcoke) sector. The worldwide tightening measures and the economic slump have reduced demand for petcoke. Many sectors, including steel, cement, and power generation, have reduced their operations, affecting petcoke demand. Travel restrictions and restricted transportation have also had an impact on the petcoke supply chain. Petcoke prices have been volatile as a result of market uncertainty caused by the epidemic. The petcoke market's resurgence is based on the resurrection of many businesses and the easing of global lockout measures. In the post-pandemic era, government stimulus and infrastructure initiatives may stimulate demand for petcoke.

Petroleum Coke (Petcoke) Market: Growth Drivers

Growing demand from cement and power generation industries

The growing demand from cement and power generation industries is fueling the market growth of the petroleum coke. Fuel grade petcoke is widely used in the cement and power generation industries. The expanding cement and power generation industries across developing economies, such as China and India, are also contributing to the market growth of petroleum coke. Moreover, the increasing export of the petroleum coke is also propelling the market growth. For instance, according to Bureau of Energy Efficiency, Ministry of Power, government of India, the cement industry in India is the largest in the world, next only to China. At present, the Installed Capacity of Cement in India is 500 MTPA with production of 298 Million Tonnes per annum. Majority of the cement plants installed capacity (about 35%) is located in the states of south India. In PAT scheme, Total Installed Capacity of Cement in India is 325 MTPA which contributes to 65% coverage of total installed capacity in India. With the increase in growth of infrastructure, the cement production in India is expected to be 500 Million Tonnes by the year 2020 and 800 Million Tonnes by 2030.

Figure 1. Global Petroleum Coke (Petcoke) Market, By End-use

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Increasing production of aluminum is driving the demand for calcined petcoke

The growing emphasis on lightweight design in the car industry, as well as the developing aerospace sector, are driving the demand for primary aluminum. The usage of aluminum in the vehicle industry is expected to increase due to the growing environmental pressure to adopt lightweight materials. Other factors driving the market growth under consideration include increased building activity in the Asia Pacific region, notably in ASEAN countries, increased adoption of new technologies, and innovative construction techniques.

Petroleum Coke (Petcoke) Market: Market Restraints

The adverse environmental and health effects of petcoke

The adverse environmental and health effects of petcoke is projected to hamper the market growth. Petroleum Coke (Petcoke) has high sulfur content which has adverse effects on the aquatic as well as terrestrial environments. Due to this, government has imposed various strict regulations to limit the use of petcoke. However, alternative fuels and technologies are being developed to mitigate the harmful consequences of petcoke. Cleaner-burning fuels such as natural gas and hydrogen, as well as enhanced pollution control systems, are examples of this. There is also an increasing emphasis on recycling and reusing petcoke to lessen its environmental effect. These measures try to counteract the negative consequences and ensure the market's long-term growth.

Market Trends

The shifting trend of using petcoke in medical, electrical components, and ceramics application due to its various advantages offered is projected to propel the market growth. Petcoke has anti-corrosion property, it is lightweight, highly ductile, and also has excellent electrical& thermal conductivity. Moreover, the rapid growth of electronic industries is also projected to spur the market growth of petcoke.

Figure 2. Global Petroleum Coke (Petcoke) Market, By Region 

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Petroleum Coke (Petcoke) Market: Market Segmentation

On the basis of end-use industry, in 20212, the confectionery segment accounted for the largest market share of 33.5% in terms of value, followed by the cement kilns and power plants segments respectively. Because of rising disposable money and changing customer preferences, the confectionery business has seen sustained expansion, resulting in an increase in the consumption of indulgence treats. To attract customers, manufacturers in this market are also working on product innovation, offering new flavours, and enhancing packaging.Following the confectionary category, the cement kilns and power plants categories obtained the second and third-largest market shares. Cement kilns are commonly used in the construction industry to produce cement. The construction industry's expansion, particularly in emerging nations, has fueled demand for cement kilns. Power plants, on the other hand, are critical in the generation of power. With increased industrialisation and urbanisation, the demand for energy has increased, necessitating the construction of more power plants. Because of infrastructural expansion and the necessity for stable energy supplies, both the cement kilns and power plants segments have enjoyed consistent growth in recent years. With a global emphasis on sustainability, many industries are likewise implementing ecologically friendly practises in order to lower their carbon impact. Confectionery, cement kilns, and power plants have emerged as important contributors to market share in 2022, catering to rising demand in their respective industries. Given changing customer tastes and the demand for sustainable solutions, the future prognosis for these industries remains positive.

Petroleum Coke (Petcoke) Market: Regional Analysis

The Asia Pacific region dominated the petroleum coke (petcoke) market in 2021, accounting for 35.6% share in terms of value, followed by Europe and North America, respectively. Asia Pacific and Europe are the two largest importers of petroleum coke. Emerging economies like China and India account in these nations, petroleum coke is mostly utilized in cement kilns and power plants. In China, a considerable portion of petroleum coke is utilized in power plants to generate energy. Growing industrialization in India and China is driving the expansion of the petroleum coke industry. Asia Pacific emerged as the most dominant market for petroleum coke in terms of volume. The two main importers of petroleum coke are Asia Pacific and Europe. Emerging economies such as China and India contribute significantly to the petroleum coke sector. Petroleum coke is mostly used in cement kilns and power plants in these countries. In China, a significant amount of petroleum coke is used to create electricity in power plants.

Petroleum Coke (Petcoke) Market: Key Developments

• On January 6, 2023, Phillips 66 American energy company and DCP Midstream, LP a midstream petroleum services, reached an agreement for each standard unit representing a limited partner interest in DCP Midstream, boosting its economic holding in the firm to 86.8%. It will assist the firm in growing and, in certain aspects, increasing petroleum coke (petcoke) Market productivity.
• On August 2, 2022, bp oil and gas company and Eni Itlain energy company announced that Azule Energy, the new 50/50 independent joint venture combining the two companies’ Angolan businesses, was officially established
• On June 20, 2022, ExxonMobil and Texas A&M University collaborated to develop a technique that will transform petroleum coke, a byproduct of crude oil refining, into graphene through a chemical process known as electrochemical exfoliation
• In February 2022, Reliance Industries Ltd Indian multinational conglomerate announced plans to generate blue hydrogen to convert petroleum coke to synthesis gas

Petroleum Coke (Petcoke) Market: Key Companies

The key players active in the petroleum coke (petcoke) market are BP Plc, Chevron Corporation, Essar Oil Ltd., ExxonMobil Corporation, HPCL - Mittal Energy Limited, Indian Oil Corporation Limited, Reliance Industries Limited, Royal Dutch Shell Plc, Saudi Arabian Oil Co., and Valero Energy Corporation

*Definition: Petroleum coke is a by-product of crude oil, and it looks like solid rock materials. Petroleum coke is basically used across various industries as an energy source. Power generation is a key end user of petcoke and other prominent users of petroleum coke are the metal, construction, aluminum, blast furnace, and steel industries.

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