PETROLEUM COKE (PETCOKE) MARKET ANALYSIS

Market Challenges And Opportunities

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.

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.

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.